Empire State Development Corporation

Agency Web Site: https://esd.ny.gov/

Mission

Doing business as Empire State Development (ESD), the Urban Development Corporation (UDC) is a New York State Public Benefit Corporation. Its overall objective is to promote a vigorous and growing State economy, encourage business investment and job creation, and support diverse, prosperous, local economies across New York State through the use of loans, grants, tax credits, real estate development, marketing, and other forms of assistance.

Organization and Staffing

In 1995, the Department of Economic Development (DED) and the Urban Development Corporation were consolidated to form Empire State Development.

Empire State Development is headed by the President/CEO appointed by the Governor, subject to Senate confirmation. ESD is governed by a nine-member board of directors, comprising two ex-officio members and seven members appointed by the Governor with the consent of the Senate. ESD operates regional offices in Binghamton, Buffalo, Elmira, Hauppauge, New Windsor, New York City, Plattsburgh, Rochester, Syracuse, Troy, Utica, and Watertown, with headquarters in Albany, Buffalo, and New York City.

Major Programs

• NY-RUSH: Redevelopment of Underutilized Sites for Housing. The FY 2026 Executive Budget includes $250 million in capital funding for the implementation of the Redevelopment of Underutilized Sites for Housing Initiative (NY-Rush), which will assist State agencies in the repurposing of existing State sites and properties for use as housing.
• Championing Albany's Potential Initiative. The FY 2026 Executive Budget includes $400 million to revitalize the downtown core of Albany, in partnership with local stakeholders and backed by State resources to catalyze change. To better cement Albany’s stature as the heart of our State, the Budget will also devote resources toward the New York State Museum, with a goal of updating and modernizing its core facilities.
• Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund. The FY 2026 Budget includes funding to launch the POWER UP program, to fund the proactive development of electric capacity to create power-ready sites and attract new businesses to the state. The fund will receive $100 million over three years ($300 million total investment), that will allow for the proactive development of dozens of sites.
• Regional Economic Development Councils. $150 million to support a new round of funding for the Regional Economic Development Councils initiative to further advance each region's long-term economic development strategies and job growth.
• Workforce Development Initiatives. The Budget adds $191 million in workforce development funding that continues support for the FY 2023 workforce development initiative that advanced a wide-reaching and historic investment in workforce development across several agencies and authorities. This funding will sustain ESD’s Office of Workforce and Economic Development initiative including: workforce development local assistance and capital grants programs, targeted workforce investments in teachers, healthcare workers, collegiate apprenticeships and internships, mental health professionals, and caregivers. Resources for ON-RAMP are also included in this funding.
• Empire Artificial Intelligence (AI) Partnership: The State will invest an additional $90 million in capital grants, complemented by more than $125 million from private partners, for the Empire AI initiative. This investment will accelerate pioneering developments in AI, positioning New York at the forefront of national efforts of research, innovation and economic development in AI. The $90 million is in addition to the $275 million State investment provided in the FY 2025 Enacted Budget.
• FAST NY. $100 million in new capital funding for the Focused Attraction of Shovel-Ready Tracts New York program.
• New York Works Economic Development Fund. $400 million for the New York Works Economic Development Fund as part of the New York Works initiative. This Fund will provide capital grants to support projects that facilitate an employer’s ability to create new, or retain existing, jobs, or to fund infrastructure investments necessary to attract new businesses or expand existing businesses.
• Market New York. $15 million to support tourism marketing plans and projects that best demonstrate regional collaboration among counties and promote regional attractions.
• Promote Tourism and Business Investment. The Budget includes $47 million to support efforts to promote New York State as a tourism destination, attract and expand business investment and job creation, and support economic development initiatives of the State.
• Economic Development Investments. The Budget includes $43 million to support ongoing economic development initiatives including the New York State Economic Development Fund, the Minority and Women-Owned Business Development and Lending Program, the Urban and Community Development Program, and the Entrepreneurial Assistance Program.
• Long lsland Infrastructure. The Executive Budget provides $50 million to support intermodal infrastructure investments in Suffolk County, Long Island.

Budget Highlights

The FY 2026 Executive Budget recommends nearly $1.8 billion in new funding in support of various ESD programs and initiatives.

For more information on this agency's budget recommendations located in the Executive Budget Briefing Book, click on the following link:

Briefing Book – Economic Development

Note: Most recent estimates as of 01/21/2025