A City on the Rise

A Hudson River community transforming vacant lands into vibrant opportunity through housing-led revitalization, strategic infrastructure, and historic preservation

Nestled along the historic Hudson River, Rensselaer, New York, blends rich heritage with ambitious growth. Though incorporated as a city just over a century ago, its roots stretch back 400 years, shaped by industry, transportation, and waterfront vitality. Today, strategic advantages, including proximity to Albany and seamless highway access, position Rensselaer as a hub for commerce and connectivity.

Under Mayor Mike Stammel’s leadership, the city is executing a bold revitalization plan, Rensselaer Rising, to attract residents and businesses. “We’re back on the rise again,” explains Thomas Hulihan, Director of Planning, emphasizing the transformation of vacant industrial sites into housing and commercial spaces.

Stammel’s vision is clear, “my goal when I first became mayor was to get a lot of these vacant properties… and have developers come in and do what they needed to do.” With support from the IDA and state grants, Rensselaer is turning history into opportunity.

Strategic Location & Economic Advantages

Rensselaer’s geographic and logistical strengths make it a magnet for businesses and residents alike. Situated just across the Hudson River from Albany, the city offers unparalleled connectivity. “We have access to the interstate, which could take us anywhere we wanted in an hour and a half or two hours, to New York City, Buffalo, Montreal, or Boston,” says Stammel. The Amtrak station, the eighth busiest in the U.S., serves nearly 800,000 passengers annually, creating a steady flow of potential customers for local businesses. “We get a lot of people who, if they’re waiting for train transfers, like to go through the city and visit some of the sites or go to lunch,” Stammel adds.

In addition to transportation, Amtrak also provides jobs for the community with a maintenance yard that is one of six in the nation that is being upgraded for the Airo fleet.  The others are in New York City, Philadelphia, Boston, Washington, D.C. and Seattle.   The city’s industrial potential is equally robust. The Port of Rensselaer, once neglected, is now a focus of renewed investment. “We’re working with the county government to provide new sewer and water infrastructure to support the port,” Stammel notes. Just beyond city limits, an industrial park linked to Rensselaer Polytechnic Institute (RPI) offers additional space for healthcare, manufacturing, and mixed-use ventures. Just east of Rensselaer, Regeneron Pharmaceuticals, Inc. has a campus and employs 4,500 employees locally.

To attract businesses, the city and its Industrial Development Agency (IDA) deploy targeted incentives. Jack Bonesteel, IDA CEO, explains their role, “if you think of New York State as a football field but somebody poured a foot of mud on the field and said go score, the IDA scrapes some of that mud off the field, so those businesses can prosper, so they can score.” Tools include tax abatements, grants, and low-cost financing, critical for leveling the playing field in New York’s competitive market. “In the case of manufacturers the IDA can also offer tax-exempt bond financing, which offers more affordable interest rates than bank financing,” Bonesteel adds.  For small businesses, the city sweetens the deal with a year of free Chamber of Commerce membership, amplifying their visibility from day one.

With infrastructure upgrades underway and a business-friendly approach, Rensselaer is poised to capitalize on its strategic advantages, and turn passersby into stakeholders.

Downtown Revitalization: Rensselaer Rising

At the heart of Rensselaer’s transformation is Rensselaer Rising, a comprehensive plan to breathe new life into the downtown core. Focusing on Broadway, Columbia Street, and East Street near the Amtrak station, the initiative prioritizes mixed-use development to create a vibrant, walkable urban center. “We developed a plan to revitalize those areas and reactivate them to enhance our business corridor,” explains Hulihan.

Key projects are already reshaping the cityscape. The Barnet Mills Apartments will add 72 units and 20,000 square feet of commercial space at the northern edge of downtown, extending the district’s reach. Closer to the downtown, Bonacquisti Brothers is constructing a four-story building with 28 apartments and 5,000 square feet of retail. Across from the train station McManus Properties is adding 49 apartments with 7,500 square feet of commercial and co-working amenities. Nearby DeLeat’s Landing, an existing complex with 180 units, is expanding with 138 additional apartments and commercial space. “Beautiful apartments,” Hulihan notes, “right on the waterfront.”

The most ambitious proposal comes from Polsinello Realty, which plans 300 apartments and 10,000 square feet of retail or restaurant space along the Hudson River waterfront trail. “That property was, since the 1950s, all railroad; a lot of this property that we’re developing hasn’t been used in a number of years,” explains Stammel.

Small businesses are already taking root, with recent openings including a Mexican restaurant, ice cream shop, and a Sunoco convenience store with a food mart. However, gaps still remain. “We’re a bank desert, we haven’t had a bank in many years,” says Bonesteel, citing the closure of KeyBank years ago. A grocery store is another priority, especially after Aldi relocated outside the city.

“We’re not going to get the commercial people until we get more people living here in the city,” notes Hulihan, “That’s our objective, provide housing, and therefore, when the market shows that with the number of residents we have here in the city, that will support new businesses showing up as well.”

With these projects, Rensselaer isn’t just rebuilding, it’s reimagining what a small city can be.

Housing as a Catalyst for Economic Growth

Rensselaer’s housing boom represents more than new construction, it’s the foundation for the city’s economic resurgence. Stammel recalls a time when the population exceeded 15,000, today, it stands below 10,000. His solution? Transform underutilized properties into desirable homes. “We joined a lot of those [vacant land] properties together in order to make an incentive for developers to come in and provide some small housing,” he says. The strategy is working, with industrial sites now hosting modern apartments that blend historic character with contemporary living.

The numbers tell a compelling story. With over 800 housing units in development, the city anticipates a significant economic ripple effect. “797 units bringing in 2-plus residents per unit equals about $30 million of new disposable income to the small city of Rensselaer,” calculates Bonesteel.

Currently, a Placer AI leakage study reveals residents frequently spend outside city limits. “We found that a lot of our residents are going to Albany and Clifton Park,” Bonesteel notes, “so we need to get the word out to retailers to let them know that there’s a lot of money right here in Rensselaer to be spent at retail establishments. That’s what we’re hoping to do, and that ties into the mayor’s comment about how we want housing to serve as an engine for retail development.” The new housing aims to recapture those dollars by creating critical mass for local retailers.

State partnerships amplify these efforts. Through the Restore NY program, Rensselaer secured $5 million for housing initiatives, including $1.8 million for BBL Construction for Barnet Mills, $2 million for McManus, and $1.2 million for Railroad Place development.

“New York State appreciates what we’re trying to do to revitalize Rensselaer,” Bonesteel emphasizes. These investments not only revive neglected properties but also ensure long-term revenue. As Bonesteel puts it, “rather than continuing to passively tolerate the existence of unproductive vacant properties, we have set the stage to attract new residents to them. Those new residents will bring with them significant disposable income that can be spent in Rensselaer at new retail enterprises eager to tap a resurgent Rensselaer market”.

By prioritizing housing, Rensselaer isn’t just adding residents, it’s building a sustainable economic ecosystem that has led to Rensselaer being designated a Pro-housing Community by New York State

Infrastructure & Quality of Life Investments

Rensselaer is laying the groundwork for growth with strategic infrastructure upgrades that combine functionality with sustainability. Near the bustling Amtrak station, $3.2 million in sewer and sanitary system improvements ensure the area can support new development. “We did eco-friendly porous pavement and rain gardens to improve drainage,” notes Hulihan, showcasing the city’s commitment to green solutions. These upgrades complement ongoing efforts to secure grant funding for additional infrastructure needs, particularly around the Barnet Mills development.

Quality of life enhancements are equally prioritized. A $2 million investment revitalized four neighborhood parks, adding ADA accessible equipment, repaved courts, and new amenities. “It was a response to getting kids out of the house and into the parks and  fresh air during the COVID era,” explains Amy Lolik, Assistant Planning Director.

The crown jewel is The Hollow, a sprawling, wooded parcel with historic ties to the military. “Back in the early 1900s, it was a rifle range for the military at one time and it was deeded to the city to always be a park,” explains Stammel. With a $600,000 grant, the city plans to transform it into a nature preserve with trails connecting to schools and downtown. “It’s just a beautiful place that we intend to hook up with picnic tables and things of that nature,” he adds.

Tourism initiatives further elevate Rensselaer’s appeal. The Ambassador Program leverages the Amtrak station’s foot traffic, educating visitors about local history, from the birthplace of aspirin to the site of professional baseball’s first grand slam. Future connectivity projects, like the redesigned Livingston Avenue Bridge, will feature pedestrian and bike access to Albany, while waterfront trails aim to link Rensselaer to Troy. Together, these investments ensure growth is both sustainable and livable.

Priorities for the Next 24 Months

Rensselaer’s momentum shows no signs of slowing as the city enters a critical phase of its transformation. The coming two years will see intensified focus on downtown activation, with streetscaping projects, sidewalk improvements, and ADA compliance measures creating a more inviting urban core. Near the Amtrak station, plans for transit-oriented development take shape. “A supermarket is something we’d like to see there, as well as other commercial activity, some residential and some office space in that area,” reveals Hulihan.

Business attraction remains paramount, with a unique opportunity emerging from neighboring Albany’s interstate redesign. “We want to be set up ready to capture those  businesses that may be being pushed out by Albany, and bring them to the city of Rensselaer,” says Stammel. Development efforts extend to the Port of Rensselaer, where the city is working to bring shipping and industrial tenants to vacant lots utilizing the Capital Region Foreign-Trade Zone #121 to stimulate international trade and create jobs and investment.

Strategic collaborations will fuel this growth. The IDA stands ready to deploy its toolkit of incentives, while state grants continue playing a vital role. Stammel emphasizes fiscal responsibility, noting how redeveloped properties now generate meaningful tax revenue compared to vacant lots, “before it wasn’t really giving us anything,” he says, “and we built for the future to get it up to the full tax revenue in the future.” This balanced approach, marrying bold vision with financial pragmatism, ensures Rensselaer’s rise benefits all stakeholders.

Historic Roots to Modern Revival

Rensselaer’s remarkable transformation under Mayor Stammel’s leadership demonstrates how vision and collaboration can revitalize a community. What was once vacant land and underutilized properties has blossomed into a thriving, connected city where history meets opportunity. The formula works, housing drives retail, transportation fuels commerce, and partnerships amplify every opportunity.

With over 800 housing units in progress, major infrastructure upgrades, and a downtown coming alive with new businesses and amenities, Rensselaer Rising has evolved from slogan to reality. For both businesses and residents, Rensselaer’s transformation is creating tangible opportunities.

AT A GLANCE

Who: City of Rensselaer, New York

What: A historic Hudson River city undergoing transformative revitalization through mixed-use development, housing expansion, and strategic infrastructure upgrades while capitalizing on its transportation assets

Where: Across the Hudson River from Albany, New York

Website: www.rensselaerny.gov