CUOMO KICKS OFF STATEWIDE TOUR TO INCREASE TOURISM ON ERIE CANAL; CUOMO, GLICKMAN, LAFALCE, AND QUINN ANNOUNCE $31.1 MILLION IN FEDERAL AID TO WESTERN NEW YORK CANAL REGION

Funding breakdown and project descriptions attached

BUFFALO -- Housing and Urban Development Secretary Andrew Cuomo and Agriculture Secretary Dan Glickman today kicked off a five-day tour of New York's Canal Corridor with an announcement of $31.1 million in federal assistance to communities along New York's Canal Corridor to spark economic growth, job creation, increased tourism, housing construction and infrastructure improvements. The funds are in addition to the $9.3 million announced by Cuomo three weeks ago for Buffalo's Inner Harbor.

Secretaries Cuomo and Glickman were joined by Congressmen LaFalce and Quinn at a news conference at the Naval and Servicemen's Park in Buffalo which is the historic terminus of the canal. Cuomo's visit is the first day of a five-day visit to upstate New York tourism sites designed to highlight the historic, cultural and recreational attractions in Canal Corridor communities. Cuomo spent the day on Lake Erie boating with Secretary Glickman and Congressmen Jack Quinn and John LaFalce.

Cuomo, joined by his wife Kerry Kennedy Cuomo, twin daughters Cara and Mariah, and Congressman and local officials from across the state will spend the rest of the week traveling the Canal Corridor by boat and ground transportation across New York State. Those traveling are sampling a wide variety of family-oriented activities available along the Canal Corridor, including biking along the canal towpaths, hiking, fishing, and visits to museums, historic sites, and cultural attractions. (See attached itinerary) Cuomo and Glickman are expected to announce over $100 million in federal assistance during the tour.

"New York's own Erie Canal Corridor is an unparalleled national and international tourism attraction," said Cuomo. "With more than $200 million in new federal investment during the past two years --which has already brought new business and jobs to the region-- there has never been a better time to enjoy the recreational and historic attractions along New York's waterways. My family and I are excited about this visit, and about the renewed vitality of the Canal Corridor."

"We're pleased to continue our successful partnership with HUD; helping rural communities prosper along New York's Canal Corridor," said Glickman. "Whether it's providing clean, running water or electricity to turn on your lights, USDA is there to help."

"I am delighted by HUD and USDA's announcement of over $100 million for the revitalization and redevelopment of the Canal Corridor," said Senator Charles Schumer. "We all recognize the enormous potential of the Canal Region, and I am pleased to see steps being taken to help our rural communities prosper. I look forward to continuing to work with Secretaries Cuomo and Glickman to ensure the economic health of New York State."

The funding today builds on over $200 million in assistance provided through the Canal Corridor Initiative during the past two years. HUD's Canal Corridor Initiative began in 1997 by Cuomo to put federal resources to work as part of a long-term and coordinated commitment to revitalize communities along the Canal Corridor and elsewhere in upstate New York. The locally driven initiative seeks to turn the Erie Canal and connecting waterways that make up the Canal Corridor into a major tourism destination that will spark economic development across upstate.

HUD, the Department of Agriculture, the National Park Service, local communities and businesses are working in partnership to make the Canal Corridor Initiative succeed. Federal assistance has gone to over 200 projects along the 524-mile canal system. New Canal Corridor projects built with this aid span the state and include new marinas, restaurants, recreational businesses, parks, walkways and bikepaths. Federal assistance has also funded the reconstruction and preservation of historic and cultural sites, along with the development of new manufacturing and small business development. One project funded by HUD includes Buffalo's Inner Harbor.

"HUD recognizes the importance of Buffalo's Inner Harbor as an integral part of the Erie Canal. A 'new' Erie Canal can only bring prosperity to our state including Buffalo by increasing tourism, and attracting new businesses and new jobs," said Congressman Jack Quinn. "It is important for us to restore and maintain the quality of the Erie Canal for its historical and cultural value. I have worked hard to bring in more than $37 million in federal funds for the development of the waterfront. There is no doubt that this development is essential for Buffalo's future success."

"The Erie Canal corridor and its adjacent waterways have the potential to become significant tourist attractions in New York State," said Congressman John J. LaFalce. "The Canal Corridor Initiative, through the use of the small cities development program, with the assistance of other programs administered by both HUD and USDA, can help communities in the vicinity of the Canal to implement projects that can spur economic development, promote tourism, and create jobs. This is an excellent program for the Canal Communities of New York state and I look forward to working with Secretary Cuomo and Secretary Glickman, and all of the eligible communities, to continue the revitalization of the greater Canal area."

"Secretary Andrew Cuomo has correctly recognized that the City of Buffalo's Future rests with the redevelopment of our waterfront," said Buffalo Mayor Anthony C. Masiello. "The City of Buffalo's historical connection with the Erie Canal is now firmly established with HUD's Canal Corridor Initiative, which will only enhance all elements of Buffalo's revived waterfront region, including critically important tourism activities."

The 524-mile New York State Canal System was once a major link between the Northeast and the Midwest. As other forms of transportation took over the Canal's role of a major transport route, the industrial and commercial base of many cities and towns in the region suffered. These cities experienced declining populations, urban decay, and high unemployment.

The Initiative complements the New York State Canal Revitalization Program, both in its details and overall goals. It is based on a careful review of existing state and local plans for the region, including the landmark New York State Recreationway Plan, completed in 1995. As a result, it provides a template for close cooperation between federal, state and local governments in revitalizing the Canal Corridor.

SUMMARY OF TODAY'S FEDERAL AID ANNOUNCEMENTS FOR WESTERN NEW YORK'S CANAL CORRIDOR REGION

HUD and USDA today announced $27 million in small cities/Canal Corridor assistance to the following five Western New York counties.

COUNTY	TOTAL HUD AND USDA ASSISTANCE
Cattaraugus	$1.2 million
Chatauqua	$585,784
Erie	$8.4 million
Niagara County	$2.4 million
Orleans	$14.5 million

Secretary Cuomo also announced $4.1 million in entitlement assistance for the City of Niagara Falls including:

• $3.3 million in Community Development Block Grants (CDBG);
• $773,000 in HOME funds used to create affordable housing for low-income households;
• $118,000 in Emergency Shelter Grant funds.

WESTERN REGION PROJECT DESCRIPTIONS BUFFALO INNER HARBOR

COMMUNITY	DESCRIPTION	JOBS TO BE CREATED	GRANT AMOUNT	LEVERAGE	TOTAL	COUNTY
ALLEGANY, T.	The Town of Allegany's $400,000 economic development grant will assist with the development of a 8,400 s.f. light-manufacturing facility. Two of the current tenants, Advanced Monolythic Ceramics and Cutlery Associates, plan to expand their business and create 24 new full-time jobs. The project will also leverage $200,000 in other private investment.	24	$400,000	$200,000	$600,000	CATTARAUGUS
SOUTH DAYTON, V.	The Village of South Dayton will use a $400,000 HUD grant to install a water treatment system designed to greatly improve the Village's water supply. The Village will also use $360,000 of its own funds to replace its deteriorated water storage tank. The entire Village, 222 households, will be served by the project.		$400,000	$359,000	$759,000	CATTARAUGUS
MACHIAS, T.	The public improvement project in the Town of Machias, funded with a $400,000 HUD grant and $275,000 in local funds, will improve the quality of drinking water. Machias will install and develop a secondary water supply well, rehabilitate an existing water storage tank, replace water mains, and install a booster pump station. Approximately 242 households will benefit.		$400,000	$275,000	$675,000	CATTARAUGUS
CLYMER, T.	The Town of Clymer will use $260,754 in CDBG funds to install a water treatment system, expand a wellhouse, and construct a second water storage tank. These improvements will improve water quality and provide additional water storage capacity. The project will serve 192 households.		$260,754	$29,650	$290,404	CHAUTAUQUA
CHERRY CREEK, T.	The Town of Cherry Creek will undertake a housing rehabilitation program. A $325,000 grant will be used to rehabilitate 20 substandard owner-occupied and rental properties. Rehabilitation will be funded with a 75 percent grant, with homeowners providing a 25 percent match. Landlords will be expected to match CDBG funds at 50 percent and will be required to maintain rents at an affordable level to existing tenants. The leverage of private investment will be $92,000.		$325,000	$92,000	$417,000	CHAUTAUQUA
NORTH TONAWANDA, C.	The City of North Tonawanda will assist 20 families in the purchase of their first home with a $400,000 HUD grant. CDBG funds will subsidize mortgages and down payments. Homeownership counseling will also be provided. The project will stimulate $1,135,000 of other local investment.		$400,000	$1,135,000	$1,535,000	NIAGARA
NIAGARA COUNTY	Niagara County will use its $600,000 Small Cities Community Development Grant to fund two economic development projects. The first project will provide $400,000 for site preparation as part of a $3.45 million construction of a "Smart Building" in the Town of Wheatfield. The construction of this building, located in the Inducon Industrial Park, will create 60 jobs for low and moderate income persons. The second project is a $200,000 loan for modernization of the Mayer Brothers juice processing facility located in the Town of Somerset. The $1.775 million project will create 20 jobs.	80	$600,000	$4,625,000	$5,225,000	NIAGARA
LOCKPORT, C.	As part of its homeownership initiatives, the City of Lockport will use a $400,000 HUD grant to subsidize downpayments and mortgages for 19 families purchasing first homes. An additional $60,000 of local resources will be made available for rehabilitation of these 19 homes.		$400,000	$1,030,153	$1,430,153	NIAGARA
ALBION, V.	The Village of Albion will use its $400,000 HUD grant to construct 6,200 feet of storm sewers in the Moore Street area, including Joseph Avenue, Knave St., Sanford St., and Braley St. The project will eliminate localized flooding of streets and basements and improve the operation of a wastewater treatment plant. The project benefits the entire Village of 5,863 persons, and directly serves 200 neighborhood households.		$400,000	$110,250	$510,250	ORLEANS
ALBION, T.	The Town of Albion will provide new public water service to 148 residences using $400,000 of CDBG funds and $1.6 million in USDA funding. They will construct 65,300 linear feet of water mains. The project will improve inadequate private water supplies and alleviate other public health concerns.		$400,000	$1,601,300	$2,001,300	ORLEANS
SHELBY, T.	The Town of Shelby plans to provide new public water service to 61 existing occupied residences in the Fletcher Chapel/Dresser areas with a $400,000 CDBG grant and $691,000 from USDA. A total of 27,200 linear feet of water main will be constructed.		$400,000			ORLEANS
RIDGEWAY, T.	The Town of Ridgeway will use a $400,000 HUD grant and $1.7M of USDA funds to construct 12 miles of water mains to serve a new water district in the Town's southeastern areas, including the Hamlet of Knowlesville. The total project cost is $2,169,000. Currently, residents of this area have no access to public water, and rely on low yield, poor quality wells. The project will benefit 192 households.		$400,000	$1,769,400	$2,169,400	ORLEANS
CARLTON, T.	Carlton's $400,000 grant will be used to extend public water service to 75 households that now rely on inadequate wells and cisterns. Installation of the new distribution line will enable to Town to connect with the Village of Albion's existing distribution system. USDA will contribute $1.1 million.		$400,000	$1,125,000	$1,525,000	ORLEANS

SECRETARY CUOMO'S CANAL CORRIDOR TRIP ITINERARY