State Awards SouthWorks $38M in Support Funding

New York State has announced a significant investment of $38 million to support the SouthWorks redevelopment project in Ithaca. This initiative aims to revitalize the former Morse Chain Factory site, contributing to the broader economic development efforts across the state.

Overview of SouthWorks Project

The funding announcement was made on December 23 by Governor Kathy Hochul’s office. This investment is part of a larger allocation of over $463 million aimed at boosting various economic development projects throughout New York.

Key Details of the Project

• Location: Former Morse Chain Factory site, Ithaca, New York.
• Area: 95 acres.
• Housing Units: Approximately 915 residential units.
• Additional Features: Innovation hub, industrial, retail, and commercial spaces.

The SouthWorks project has been recognized as one of the largest development proposals in Tompkins County’s history. It was put forward by the Southern Tier Regional Economic Development Council as part of the Advancing Collaboration for High-impact Initiatives for Economic Visions (ACHIEVE) competition. This program targets high-impact projects designed to stimulate economic growth and address housing shortages in the state.

Community Impact and Support

Mayor Robert Cantelmo, a member of the Southern Tier Regional Economic Development Council, emphasized the project’s significance, stating that it provides a unique opportunity to transform an underutilized industrial site into a thriving neighborhood. Local developer David Lubin leads the project through his company, L-Enterprises, in collaboration with Xylen Projects, USC Builds, and SHIFT Capital from Philadelphia.

The overall estimated cost of the SouthWorks development stands at around $588 million, with a construction timeline projected to span approximately 15 years. Significant public financial support has already been secured, including a $1 million state grant received in July for infrastructure development.

Tax Incentives and Future Projections

In October 2024, the Tompkins County Industrial Development Agency (IDA) approved a local property tax break estimated to abate around $63 million over 20 years, alongside $22 million in sales and mortgage recording tax incentives. This agreement, while beneficial, may become even more impactful over time due to its structure.

The success of the SouthWorks project is anticipated to generate tens of millions of dollars in new property taxes for the local economy, further solidifying its importance to Ithaca’s financial future. Mayor Cantelmo proudly acknowledged the funding, stating that it will play a vital role in revitalizing a long-neglected industrial site and create a new community for residents.