New York seeks developers to convert former prison into housing

July 15, 2024

New York’s Empire State Development has released a Request for Proposals (RFP) to convert the former Watertown Correctional Facility in Jefferson County into a residential project with varying unit sizes and affordability levels.

The Watertown initiative is the latest example of ongoing efforts to repurpose state-owned sites for new housing. Similarly, Seneca County has issued an RFP to redevelop the former Willard Drug Treatment Campus in the Town of Romulus into a shorefront project that could include residential, commercial and recreational uses.

These efforts align with the Prison Redevelopment Commission Report’s recommendations to redevelop closed prisons into projects that foster new housing, jobs and economic activity across the state.

“We are investing in our communities by redeveloping shuttered prisons and finding ways to reuse the sites,” Gov. Kathy Hochul said. “Both the Watertown and Willard sites are on a forward trajectory to spur economic growth.”

The Watertown Correctional Facility RFP involves 108 acres and prioritizes proposals that expand affordable housing, with potential financial support available to the chosen developer for eligible expenses. Selected developers may apply for up to $8 million in Empire State Development grant funds for eligible capital costs associated with the site redevelopment.

A site visit is scheduled for July 25, and proposals must be submitted by Aug. 30.

Seneca County is in the process of acquiring the Willard site from New York State for redevelopment, with the RFP aiming to select a master developer to enter into a public-private partnership (P3) for the entire site’s redevelopment once the transfer is finalized.

The 550-acre site, featuring over 75 buildings and a mile of Seneca Lake shoreline, is on the National Register of Historic Places and dates back to 1853. The county has allocated $500,000 for the preferred master developer in the redevelopment plan. The county also aims to identify potential development partners for specific parts of the site. Proposals are due by Oct. 15.

Both RFPs stem from recommendations put forth by the Prison Redevelopment Commission, a group of 15 experts in real estate, community and economic development, criminal justice reform and government convened by Hochul in 2022 to reuse land occupied by closed prisons. Suggestions to the governor that December included:

  • Prioritizing the issuance of two RFPs and supporting the Economic Development Agency throughout the RFP process.
  • Launching a Prison Redevelopment Fund to provide capital grants to developers or localities acquiring state-owned sites.
  • Establishing a Municipal Technical Assistance Fund to aid communities with closed prisons in managing facilities, including infrastructure acquisition and maintenance.
  • Implementing a community engagement process to foster outreach and build consensus.
  • Giving housing a priority in future prison RFPs and other redevelopment initiatives.
  • Exploring opportunities and partnerships in renewable energy.

“The closure of any correctional facility is a difficult decision, but choosing a site that has the potential for reuse and redevelopment is a critical factor in this process,” New York State Department of Corrections and Community Supervision Commissioner Daniel F. Martuscello III said. “To that end, it is encouraging to see the progress being made with the former Watertown Correctional Facility site, Willard Drug Treatment Campus and the Request for Proposals issued by Empire State Development that is in line with not only the governor’s housing initiatives, but also recommendations made by the Prison Redevelopment Commission.”

The state’s FY25 Enacted Budget included an agreement to boost housing availability by introducing new tax incentives for upstate communities, providing incentives and zoning relief to foster more housing in New York City, establishing a $500 million capital fund to construct up to 15,000 new homes on state-owned land, allocating an additional $600 million to support diverse housing development statewide and enhancing protections for renters.

In 2023, Hochul announced the selection of a proposal to transform the former Lincoln Correctional Facility in New York City into a mixed-use development featuring 105 units of affordable housing alongside arts and community spaces. More recently, the winning proposal was unveiled for Downstate Correctional in Fishkill, Dutchess County, to be redeveloped into a dynamic mixed-use complex with new housing and community facilities.

Other redevelopments in the works include the Bayview Correctional Facility in New York City and Empire State Development transferring the Livingston Correctional Facility in Groveland to the Livingston County Industrial Development Agency.


Photo by Matthew Ansley on Unsplash

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