Governor Kathy Hochul today announced the beginning of the demolition of the Central Warehouse in Albany. For decades, the Central Warehouse building has been an eyesore discouraging investments and economic growth for the community. Governor Hochul is stepping up and providing $11.6 million in State funding to tear down Albany’s number one symbol of blight. The funding for this project was recommended by the Capital Region Economic Development Council to encourage community development and neighborhood growth through the elimination of blighted structures. This project complements Governor Hochul’s Championing Albany’s Potential (CAP) Initiative, a $400 million State investment to revitalize Albany’s downtown core.
“Out with the old and in with the new — the Central Warehouse has been an eyesore for our State’s Capital Region, and today, we are finally taking the necessary steps to do something about it,” Governor Hochul said. “The demolition of the Central Warehouse will not only eliminate blight, unused spaces, but it’ll allow for new opportunities to bolster the community and uplift economic growth.”
Albany County Executive Daniel P. McCoy said, “Thank you to Governor Hochul for her steadfast support of this effort, adding more than $11.6 million to our County ARPA fund investment of $3 million to get this project over the finish line. The Central Warehouse has been the biggest eyesore in upstate New York for decades and became a symbol of economic decline rather than growth. Its demolition will mark a new chapter for our community and serve as a powerful reminder that change can happen, even if it takes years of persistence. Now, we will begin the process of envisioning what happens next.”
The Central Warehouse, prominently located alongside I-787 at the entrance to Downtown Albany, is an 11-story eyesore that has slowly deteriorated in front of the entire Capital Region for the last several decades. While significant attempts have been made to rehabilitate the building, it became clear that demolition is the only viable option.
The project plan includes a six-month asbestos abatement phase immediately followed by a demolition phase. It will generate approximately 90,000 tons of clean concrete which will be sent offsite for beneficial reuse/recycling, diverting this waste stream from the landfill. In addition to removing a prominent, contaminated and deteriorating eyesore, the project will create a 1.1-acre investment-ready site in a growing area of the City of Albany.
Championing Albany’s Potential
Governor Hochul’s FY26 Budget established the Championing Albany’s Potential (CAP) Initiative, a more than $400 million, collaborative, State-led effort to revitalize Albany’s downtown core in partnership with the local community. This includes $200 million in funding to plan and implement projects that reinvigorate commercial corridors, strengthen small businesses, promote housing growth, and revitalize underutilized real estate and open spaces. The CAP initiative also includes up to $150 million to transform cultural experiences in and around Albany’s Downtown such as the State Museum, up to $40 million to advance plans to reconnect communities divided by Interstate 787 and $1.5 million for public safety enhancements. Earlier this month, Governor Hochul kicked off the CAP Initiative’s first Downtown Albany Strategy public workshop, held at the Albany Capital Center. The workshop drew over 700 participants, including Albany residents and partners from business, academia and government.
Empire State Development President, CEO and Commissioner Hope Knight said, “For years, Central Warehouse has loomed over the Capital City skyline in disrepair, and the demolition of this longstanding blighted building represents a new era for Downtown Albany. Under Governor Hochul’s leadership, and in partnership with Albany County, bold actions are finally being taken, which will support new opportunities for revitalization and community development at a crucial point in the city’s long history.”
State Senator Patricia Fahy said, “Removing Albany’s ‘biggest eyesore’ with the demolition of the Central Warehouse is a long-awaited step in the development of Downtown Albany – and its first step in critical revitalization. As we begin to drive the rebirth of Downtown Albany with Governor Hochul’s historic $400 million investment in our Capital City, removing this monstrosity will change the face of the City of Albany. This development, along with ongoing efforts to reimagine 787, make crucial updates to the Empire State Plaza, and modernize the NYS Museum, will only begin to unleash Downtown’s economic potential. This long-stagnant location will now be free for a litany of new development opportunities – including the potential unearthing of the original Lock One of the Erie Canal located just across the street from Central Warehouse. I commend Governor Hochul and my colleagues at the City and County for recognizing the importance of developing this site and for making this a part of a general investment in Albany.”
Assemblymember John T. McDonald III, RPh said, “For too long, the Central Warehouse has stood as a symbol of blight in the City of Albany. Having worked on this project for many years, I know the determination and collaboration it has taken to reach this moment. I have been proud to continue supporting the funding needed to make this day possible. Demolition marks a fresh start and an opportunity to reimagine this site. I thank Governor Hochul, County Executive Dan McCoy, and Mayor Kathy Sheehan for their leadership in bringing us to this point, and I am excited to see the potential this site holds for our community.”
Assemblymember Gabriella A. Romero said, “I’m proud to stand with Governor Hochul for the demolition of the Central Warehouse as we begin a new chapter for this space. This building has been neglected for far too long, and it’s time we invest in meaningful improvements and rebuilding that truly serve the people of Albany. The projects proposed for this location support the City of Albany’s 2030 Comprehensive Plan by generating well-paying jobs, fostering local businesses, and ensuring that economic growth benefits all, particularly working families.”
