Governor Hochul’s Mid-Hudson Momentum Fund Providing $4.78 Million Towards 100-Unit Residential Project, with 20% Being Affordable
Follows Successful Completion of Restore NY-Funded Phase I Project, which Reactivated Long-Dormant Warehouse into Active, Multi-Use Community Hub
Empire State Development, MHV Development, The Community Preservation Corporation (CPC) and partners today celebrated the groundbreaking of the Barrel Factory Apartments, a 100-unit mixed use, mixed income housing development featuring 20% affordable units, and the grand opening of the project’s earlier phase, the restoration of the historic 120-year-old Kingston Barrel Factory into a multi-use community hub in Ulster County, which had vacant for 15 years. ESD Commissioner Hope Knight was joined at the event by local officials and community leaders.
Empire State Development President, CEO and Commissioner Hope Knight said, “Creating quality, affordable housing for New Yorkers is critical towards accomplishing the state’s broader economic development goals. Through Governor Hochul’s Mid-Hudson Momentum Fund – and especially with projects like the Barrel Factory complex in Kingston – ESD is ensuring that the region can continue to attract the workers, businesses, families, and visitors that fuel the local economy.”
The Barrel Factory project consists of two phases:
- Phase I, opening today, is a $4.6 million community-focused mixed-use development that will drive housing, job growth, and restore the deteriorating Historic Kingston Barrel Factory building to create a new central hub for Midtown Kingston. This phase received $840,000 in Restore NY funding (Round 6) as well as Historic Preservation Tax Credits. As part of this project, MHV Development undertook an adaptive re-use of a 120-year-old warehouse originally used as a barrel factory had been vacant for 15 years. The 18,000 square foot building has been transformed into 12 affordable residential units, along with another 3,500 square feet of commercial flex space, and the amenities for the complex.
- Phase II, begun today, is a $26.2 million project creating a 100-unit mixed-use, mixed-income development. The project was awarded $4.78 million from the Mid-Hudson Momentum Fund (Round 1). It is located on a key corridor in Midtown Kingston, an area that has historically gone through economic distress and has limited housing options. It will feature 80 market rate residential units and 20 affordable units at 80% Area Median Income (AMI). The four-story project includes a ground-floor commercial component, and the restoration of The Barn, a vacant 21,000 square foot warehouse targeted for manufacturing and professional, or maker office uses, potentially bringing up to 20 jobs.
“As communities across the state look for creative ways to invest in and develop local economies, our historic infrastructure is playing an important role,” said Randy Simons, Commissioner Pro Tempore, New York State Office of Parks, Recreation and Historic Preservation which helped facilitate the use of Federal and State Historic Rehabilitation Tax Credits that are estimated to provide $1.4 million in equity. “Preservation, collaboration, and innovation are great partners and buildings like the Barrel Factory offer exciting opportunities for reinvestment, rehabilitation, and reactivation. The Historic Rehabilitation Tax Credit Program in particular helps leverage resources to help make these projects as successful as they can be, and we are honored to be part of this important work.”
Senator Michelle Hinchey said, “One of the smartest things we can do as a community is take old, abandoned buildings and turn them into much-needed housing and mixed-use spaces that spark untapped economic opportunity. The 120-year-old Barrel Factory in Midtown Kingston is the perfect example. What was once a forgotten site is now becoming a thriving hub that’s increasing local housing right where it’s needed while driving growth for our small business neighbors. I’m excited to see Phase 2 take shape and proud to support this project with state funding. Together with our partners at all levels of government, we’re bringing more projects like this online, and I thank Empire State Development and MHV Development for their dedication to this vision.”
“There is nothing more exciting than seeing a long-abandoned historic property redeveloped to meet the community needs of today, and we are thrilled that the first phase of the 120-year-old Kingston Barrel Factory’s transformation is now complete, with the opening of 12 affordable residential units and 3,500 square feet of commercial space,” said Ulster County Executive Jen Metzger. “And this is just the beginning, as we break ground today for Phase 2 of the project, which will add more 100 units of housing, together with manufacturing, professional, and maker space to create a thriving community, artistic, and economic hub in Midtown Kingston. I want to thank Governor Hochul, Empire State Development, MHV Development, and the Restore NY and Momentum Fund programs that helped make this transformative project possible.”
“We are so thankful to Governor Hochul and Empire State Development for supporting this amazing adaptive reuse project in Midtown Kingston,” said Kingston Mayor Steve Noble. “The Barrel Factory Lofts will be a real game changer for our community, and we are very grateful for the state’s support to help this project move forward.”
Danny Sirotkin, partner at MHV Development, said, “We would like to credit our partners on both phases of this project including Empire State Development, New York State Homes and Community Renewal, and the State Historic Preservation Office at New York State Parks, Recreation, and Historic Preservation, along with countless members of the Kingston community to help bring this mixed-use, mixed-income development into a reality.”
“At a time when communities large and small across our state are facing challenges of housing supply and affordability, projects that both revitalize our historic industrial buildings while expanding our housing stock are critically important,” said Doug Olcott, Senior Vice President and Regional Director, The Community Preservation Corporation, which provided $1.8 million in both construction and permanent financing for Phase I of the project. “The restoration of the Barrel Factory and the additional new housing and commercial space that this project is creating, will be a catalyst for growth and new economic opportunity here in Kingston. My thanks to our partners at BF Apartments LLC for their vision and work, to the City of Kingston for your support, and to our partners at the State for their commitment to making New York more affordable for everyone.”
The Mid-Hudson Region has become a top destination for both tourists and new permanent residents, with more than 33,000 new residents moving to the region over the past two years alone. With regional housing stock availability of approximately less than one percent, there is a pressing need for new development to support the influx of residents. The $150 million Mid-Hudson Momentum Fund, first announced by Governor Hochul in 2023, supports mixed-use housing and infrastructure projects that will have lasting impacts in the region and that are consistent with the goals and priorities of the Mid-Hudson Regional Economic Development Council’s strategic plan. This includes projects that have garnered community support, will result in increased affordable housing, leverage non-state investment, are financially sound, and can begin quickly. Governor Hochul announced the start of construction on Mid-Hudson Momentum Fund’s first project, the Golden Hill Apartments, last month.