SCHUMER REVEALS: CITY OF UTICA IS LOCKED OUT OF USING NEARLY $2 MILLION IN FED FUNDS TO PROPEL CRITICAL UTICA HARBOR POINT PROJECT; SENATOR PUSHES TO UNLOCK FED DOLLARS SO EVERY PENNY CAN STAY IN UTICA & KEEP CITY’S MASTER PLAN ON TRACK

In 2005, City of Utica Secured $2.1M in Federal Funds For A Project That's No Longer Needed; Until Now, Federal Rules Have Blocked Reuse Of Dollars, Even In Adjacent Area; Schumer Pushes to Unlock Leftover Money So City Can Use It At the Harbor

Schumer-Backed Law Now Key To Unlocking Long-Awaited Federal Dollars; Senator Urges State To Unlock, Then Direct Funds To Harbor Point; Harbor Redevelopment Part of Utica’s Master Plan 

Schumer: These Fed Funds Could Be Anchor For Even More Harbor Funds & Projects 

During a visit to Utica, U.S. Senator Charles E. Schumer today called on the Federal Highway Administration (FHWA) and the New York State Department of Transportation (NYSDOT) to unlock $1.9 million in previously secured federal transportation funding for City of Utica, by repurposing previously appropriated funds from complete or obsolete projects. In 2005, Utica was awarded a $2.1 million earmark to re-establish Water Street, however, only $180,000 was spent and the rest remained unused. Until now, federal rules blocked the reuse of funds even if the project was no longer needed or part of a citywide plan, as in this instance. However, a newly enacted, Schumer-backed law now gives FHWA and NYSDOT the authority to repurpose any unspent money to newer projects nearby that are needed. This means there is new hope to both unlock these funds and put them to good use on local projects – like a major boost for Utica’s Harbor. In addition, this change will ensure that the remaining $1.9 million in taxpayer funds will not be wasted or simply locked away in a federal account.

“When it comes to using precious road infrastructure investments, we need to be flexible and smart. And redirecting these already-appropriated funds to high-priority projects like revitalizing Utica’s harbor makes all the sense in the world: it puts people to work, helps complete an important local project and boosts quality of life and the Utica economy as whole,” said U.S. Senator Charles E. Schumer.“We have the means to unlock this money, and the FHWA and NYSDOT should swiftly approve this request to re-allocate these funds, so the City of Utica can put them toward the forward-looking Utica Harbor Pedestrianway Project. This project is already part of Utica’s master plan, and is needed to connect Downtown and Bagg Square’s growth with future development at Harbor Point. The bottom line is: these funds were designated for the City of Utica, and they must remain in Utica to use on local projects like the Utica Harbor Pedestrianway.”

Schumer explained that in 2005, Congress approved an earmark for the City of Utica in the amount of $2.1 million. However, only 8.5 percent of that – roughly $181,000 – was actually used. Schumer explained that, at the time, the federal funds were initially earmarked for the “Utica Marsh- Reestablish Water Street” project, designed to reconnect Water Street to the surrounding areas and make structural repairs to the Barnes Avenue Bridge. However, an inspection by the NYSDOT later revealed that the bridge required more extensive repairs than originally expected. This significantly raised the repair costs well beyond the available federal funds originally allocated. As a result, the City of Utica decided to close the Barnes Avenue Bridge and put off the project, dramatically reducing the cost of the overall project. Since then, the City developed a new, citywide masterplan in 2011 that no longer included the re-establishing of Water Street.

In the wake of this, only $181,295 of the $2,123,127 earmarked were spent. This left approximately $1.9 million in unspent dollars, which the City of Utica was legally prevented from spending on other more pressing or important projects until the Schumer supported provision passed late last year. Schumer explained that, now, the City of Utica wishes to spend this $1.9 million on its “Pedestrianway to the Utica Harbor” project, as outlined in its citywide master plan. The Utica Harbor Pedestrianway Project is aimed at improving mobility and connectivity throughout Utica by fostering a healthier, safer and more sustainable environment for pedestrians and bicyclists. Specifically, the project will do two things. First, it would double the width of a stretch of existing sidewalk. Second, it would reconfigure an intersection to better accommodate both vehicular and pedestrian/bicycle traffic as well as provide connectivity to the Rayhill trail, Downtown and Bagg’s Square.

Schumer said refocusing this funding towards work at Harbor Point fits within the City’s broader vision of its future. In recent years, the City has advanced several planning initiatives, including the completion of a citywide master plan, which has set the stage for future development in specific city areas. From utilizing state funds and working with organizations like Rust 2 Green to implement parts of this redevelopment plan, to transferring over 30 acres of waterfront property from the State’s Canal Corporation to the City’s Harbor Point Development Corporation in order to open the area up to greater opportunities. New businesses have begun to populate the ground floor of existing buildings in both areas, while loft apartment projects are planned or underway for the upper floors of numerous buildings. As existing, vacant building space is rehabilitated and the inventory of such space begins to dwindle, in-fill development with new construction is starting to take a foothold. When combined with the anticipated mixed-use development at Harbor Point, it has become increasingly apparent that improved connections between the Downtown, Bagg’s Square and Harbor Point are imperative, particularly for pedestrians and bicyclists.

By unlocking these funds and allowing the City to use them for this worthwhile project instead, Schumer said Utica would be able to improve multi-modal transportation safety and accommodate future growth in the City. In 2015, Schumer fought to secure a provision in the omnibus spending bill – the Consolidated Appropriations Act of 2016 – that allows states to repurpose unspent federal funds originally earmarked for specific purposes more than 10 years ago, where at least 90 percent of the funds remained unobligated. Because the proposed Utica Harbor Pedestrianway Project is located within 50 miles of the original project and meets these requirements, it could be eligible to take advantage of this provision. Schumer therefore called on the FHWA and New York State to review the city’s request and approve it without delay.

Schumer was joined by Utica Mayor Robert Palmieri and Utica Harbor Point Development Corp. Chairman Vincent Gilroy.

“The City of Utica is in the midst of positive and transformative change with the development of and connectivity to the Harbor being a vital piece to our revitalization,” said Utica Mayor Robert Palmieri. “Freeing up this funding and enabling the City to pursue this project will enable us to accelerate our progress at the Harbor, and I thank Senator Schumer for his consistent and effective advocacy for Utica and our region as a whole.”

A copy of Schumer’s letter to the FHWA appears below:

Dear Adminstrator Nadeau,

I write to call on the Federal Highway Administration (FHWA) to re-allocate $1,941,832 in funding for the City of Utica remaining from a 2005 earmark for a project titled “Utica Marsh- Reestablish Water Street.” This funding from over a decade ago sits unobligated as is, and if re-allocated will fund the “Utica Harbor Pedestrianway Project”, which will significantly enhance and transform connectivity for pedestrians and bicyclists between Harbor Point, Bagg’s Square and throughout Downtown Utica.

In 2005, Congress approved an earmark for the City of Utica in the amount of $2.1 million. However, only 8.5 percent of that – roughly $181,000 – was actually used. At the time, federal funds were initially earmarked for the “Utica Marsh- Reestablish Water Street” project, designed to reconnect Water Street to the surrounding areas and make structural repairs to the Barnes Avenue Bridge. However, an inspection by the NYSDOT later revealed that the bridge required more extensive repairs than originally expected. This significantly raised the repair costs well beyond the available federal funds originally allocated. As a result, the City of Utica decided to close the Barnes Avenue Bridge and put off the project, dramatically reducing the cost of the overall project.

In the wake of this, only $181,295 of the $2,123,127 earmarked were spent. This left approximately $1.9 million in unspent dollars. The City of Utica now wishes to spend this $1.9 million on its “Pedestrianway to the Utica Harbor” project under the provision of the Consolidated Approporations Act of 2016 that allow certain funds to be repurposed. The Utica Harbor Pedestrianway Project is aimed at improving mobility and connectivity throughout Utica by fostering a healthier, safer and more sustainable environment for pedestrians and bicyclists. Specifically, the project will do two things. First, it would double the width of a stretch of existing sidewalk. Second, it would reconfigure an intersection to better accommodate both vehicular and pedestrian/bicycle traffic as well as provide connectivity to the Rayhill trail, Downtown and the Baggs Square District.

I offer my full support of this earmark repurposing request, and urge the FHWA and the NYSDOT to review this request for approval. If you have any further questions, please do not hesitate to contact my staff or me.

Sincerely,

Charles E. Schumer

United States Senator

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