Potential Grants & Development Incentives

Public Resources Supporting Adaptive Reuse

Executive Overview

Downtown Buffalo continues to face the combined challenges of elevated office vacancy, aging building infrastructure and the need for additional residential activity. In response, New York State, the City of Buffalo and regional economic-development organizations have established or proposed programs intended to encourage adaptive reuse, historic preservation, housing creation and downtown investment.

The Sweeney Building’s downtown location, historic character, approximately 55,800 square feet of gross building area and potential for mixed-use redevelopment may align with the objectives of certain public incentive programs. However, no grant, tax exemption, tax credit or other incentive is currently committed to the property.

The existing “as-is” commercial investment analysis does not depend upon receipt of public incentive proceeds. Any future redevelopment would require a purchaser to independently identify, apply for and secure an appropriate combination of equity, debt, tax credits and public incentives.

NYS ACHIEVE Initiative

The NYS ACHIEVE initiative is a competitive regional economic-development program. The Western New York materials presented during the 2026 developer outreach process contemplated a “Downtown Buffalo 24/7” strategy focused on increasing downtown residential density, supporting mixed-use redevelopment, preserving significant buildings and modernizing building-wide infrastructure.

The developer outreach process was intended to identify potential projects that might support a broader Western New York regional proposal. Participation in the outreach process, alignment with stated program objectives or inclusion in regional planning materials does not constitute a project approval or grant award.

Potentially supported improvements described in the 2026 program materials included certain building-wide infrastructure and common systems, such as:

• Central mechanical and HVAC infrastructure

• Electrical service and building-wide distribution

• Domestic water, sanitary and utility risers

• Fire protection and life-safety systems

• Elevator and accessibility improvements

• Building-envelope and historic-preservation work

• Other shared infrastructure necessary to support adaptive reuse

The eligibility of any specific cost would depend upon the final program requirements, approved project scope, public-benefit determination, documentation and funding agreement. Residential finishes, individual apartment improvements and ordinary tenant-specific buildout should not be assumed to qualify.

Potential Property Alignment

Characteristics that may support further evaluation of 268 Main Street include:

• A downtown Buffalo location within the area identified for increased residential and mixed-use activity

• Approximately 55,800 square feet of gross building area

• Historic architectural character and potential preservation value

• Existing commercial occupancy with a possible future adaptive-reuse opportunity

• Potential conversion of underutilized office space to residential or mixed use

• Building-wide mechanical, electrical, plumbing and life-safety infrastructure needs

These characteristics do not establish project eligibility. Any purchaser should confirm the applicable geographic, building-size, redevelopment-scope, owner-equity, timing and eligible-cost requirements directly with Empire State Development and the relevant regional program administrators.

RPTL §485-a Mixed-Use Tax Exemption

New York Real Property Tax Law §485-a permits participating municipalities to provide a graduated exemption on qualifying increases in assessed value resulting from the conversion of eligible nonresidential property to mixed use.

A potential redevelopment of 268 Main Street may warrant evaluation under this program if the final project satisfies the applicable residential-use, commercial-use, employment, construction-cost, filing and continuing-certification requirements.

Important limitations include:

• The exemption is not automatic and requires a timely application and approval.

• Eligibility depends upon the final use and square-footage allocation.

• The commercial portion must satisfy applicable statutory requirements.

• The exemption generally applies to the qualifying increase in assessed value attributable to the conversion—not necessarily the property’s entire assessed value or tax bill.

• Continued eligibility may require annual certification and continuing compliance.

• The actual benefit depends upon assessment methodology, applicable tax rates, project timing and determinations by the relevant taxing authorities.

No specific property-tax savings are represented in this offering. Prospective purchasers should obtain a project-specific analysis from the City of Buffalo assessor, legal counsel and a qualified tax-incentive advisor.

Qualified Opportunity Zone Investment

268 Main Street is located within Census Tract 165 (GEOID 36029016500), a Qualified Opportunity Zone designated under the original 2018 federal program. A purchaser considering a substantial rehabilitation or adaptive reuse may wish to evaluate whether Qualified Opportunity Fund equity could form part of the project’s capital structure.

A direct property acquisition does not automatically produce Opportunity Zone benefits. Qualification depends upon the investor’s eligible gain, investment timing, Qualified Opportunity Fund and business structure, acquisition terms, substantial-improvement requirements, holding period and continuing compliance. The existing tenant leases and timing of any proposed conversion should be evaluated in relation to the applicable improvement period.

Federal legislation has made the Opportunity Zone incentive permanent and created new ten-year designation cycles. New census-tract designations are expected to become effective beginning January 1, 2027. The property’s current 2018 designation does not guarantee that Census Tract 165 will be included in the new designation period.

Additional Potential Resources

Depending upon the purchaser, final redevelopment program and availability of funding, other resources that may warrant investigation include:

• Federal and New York State historic rehabilitation tax credits

• Restore New York funding

• Consolidated Funding Application and Regional Economic Development Council programs

• Erie County Industrial Development Agency incentives

• Commercial Property Assessed Clean Energy financing

• Utility, energy-efficiency and electrification programs

• Housing and community-development programs applicable to workforce or affordable housing

These programs have separate eligibility standards, application procedures, approval schedules and compliance obligations. Certain programs may not be combined, and some may require prevailing wages, environmental review, affordability restrictions, historic-preservation approval, minimum owner equity or long-term reporting.

See the Additional Incentives page for further general information.

Purchaser Evaluation

A prospective developer should independently determine:

• Whether the property and proposed project satisfy applicable program requirements

• Which construction costs may qualify

• The amount and timing of any potential proceeds

• Whether funding is provided as a grant, reimbursement, tax credit, exemption or financing mechanism

• Whether bridge financing is required before reimbursement

• Applicable owner-equity and lender requirements

• Prevailing-wage, environmental, preservation and reporting obligations

• The effect of incentive proceeds on project financing and investor returns

Public incentives should be treated as contingent sources of capital until all required approvals are obtained and definitive agreements are executed.

Public-Funding and Incentive Notice

All references to grants, exemptions, tax credits and public financing programs are provided solely to identify resources that a purchaser may wish to investigate. No representation is made that 268 Main Street qualifies for any program or that any application will be submitted, approved or funded.

Program availability, requirements, geographic boundaries, eligible costs, funding levels and selection criteria may change. Prospective purchasers must independently verify all programs with the appropriate governmental agencies and professional advisors.

The property’s asking price and current commercial investment analysis are not contingent upon receipt of adaptive-reuse grants or incentives. See the website’s Legal and Disclaimer page for additional information.