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Tonawanda Island rendering provided by the City of North Tonawanda.
Tonawanda Island rendering provided by the City of North Tonawanda.

City of North Tonawanda awarded $2.5 million grant to advance Tonawanda Island infrastructure, catalyze waterfront redevelopment

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Mon, Jan 26th 2026 10:30 am

City of North Tonawanda Press Release & Rendering

The City of North Tonawanda, in partnership with local developer Visone Co., has been awarded $2.5 million through New York state’s Pro-Housing Supply Initiative to support critical infrastructure improvements on Tonawanda Island. This strategic investment supports a total $5.6 million infrastructure project that will directly enable the recently approved $30-million-plus mixed-use development at 78 Bridge St., while expanding capacity for future development across the Island.

The infrastructure improvements include upgrades to water lines, sanitary sewer capacity, storm drainage, gas and electrical systems, sidewalks and roadway improvements. These upgrades are essential to unlocking development on Tonawanda Island and transforming underutilized waterfront property into a vibrant, mixed-use destination.

The Pro-Housing Supply grant supports the redevelopment of a long-vacant brownfield site and represents a major step forward in revitalizing the city’s waterfront. Importantly, as part of this public-private partnership, the full $5.6 million infrastructure project will be constructed and financed by the private developer, eliminating the need for the city to issue debt or carry long-term bond interest – saving taxpayers hundreds of thousands of dollars.

The infrastructure investment directly supports the project at 78 Bridge St., the first mixed-use residential and commercial development to break ground on Tonawanda Island – which is expected to begin construction this summer. The project includes 80-100 market-rate residential units, luxury hotel suites, commercial space, and publicly accessible waterfront amenities along the Niagara River’s Little River corridor.

“This investment is about much more than a single project,” Community Development Director Laura Wilson said. “By upgrading core infrastructure, we’re not only supporting the 78 Bridge St. development, but also positioning Tonawanda Island for long-term growth and reinvestment.”

The 78 Bridge St. site encompasses approximately 4 acres, but its impact extends far beyond its boundaries. Combined with this infrastructure investment, this catalyst project will set the stage for future development on Tonawanda Island, while helping the city implement its vision for the waterfront. Through the utilization of various NYS grant sources, the city is able to incentivize private development while leveraging projects in the public realm.

 “Tonawanda Island represents our city’s greatest opportunity for future growth,” Mayor Austin Tylec said. “This project shows how smart public-private partnerships can drive development without placing the financial burden on taxpayers. By investing strategically and working with private partners, we’re creating the conditions for long-term economic growth, new housing, and expanded public access to our waterfront.”

City officials view this project as a model for future development – one that aligns public infrastructure investments with private capital to deliver meaningful results for residents, businesses, and the broader Western New York region.

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