Oakdale Commons project wins up to $18M in state funding for next two phases

JOHNSON CITY — The effort to renovate the former Oakdale Mall into a mixed-use development in Johnson City is getting a boost from the state. The New York State government is providing up to $18 million for the next two phases of the project, the office of Gov. Kathy Hochul announced on Aug. 12. Now known as Oakdale Commons, the project’s second and third phases will include the construction of an 85,000-square-foot, regional medical campus, per Hochul’s office. The phases also include the construction of a new 22,000-square-foot child-care center, administered by Broome County and operated by a contracted provider. The center will serve up to 208 children — including infant, toddler, preschool, Pre-K and school-age slots — and the creation of up to 45 new jobs, Hochul’s office said. “This award underscores New York State’s dedication to investing in the revitalization of the Southern Tier and the commitment to improving the health of its communities,” Dr. Edmund Sabanegh, president & CEO of the Guthrie Clinic, said in the announcement. “These infrastructure improvements at the Oakdale Commons will enable Guthrie to provide an orthopedic and spine center of excellence. This will be anchored by an ambulatory surgery center that will offer our community clinical excellence in a state-of-the-art facility at lower costs.” The project will also involve the construction of 125 residential units, located on the adjacent parcel, that will cater to the projected job growth in the greater Binghamton area. Empire State Development is providing up to $18 million through the Upstate Revitalization Initiative. The total project cost is $200 million. Now underway, construction is expected to be completed in early 2026. “We are tremendously appreciative of Empire State Development’s and Governor Kathy Hochul’s support of the Oakdale Commons project and their recognition that Oakdale is a transformative development for the region,” Marc Newman, managing member of the Newman Development Group, said in the governor’s announcement. “With ESD and the Governor’s assistance, we can continue to build on the progress we have made in our initial Phase and bring much needed child care, workforce housing and world class medical services to the Southern Tier. We are thrilled to be a part of the Community and look forward to completing a project that we all can take great pride in for many years to come.” “ESD is proud to support Newman Development in its reimagining of this formerly distressed mall, which — with the addition of much-needed affordable housing, medical and child-care facilities — will further increase this community’s economic potential,” Hope Knight, president, CEO, and commissioner of Empire State Development, said in the release. The first phase involved the redevelopment of the former Sears store into the Lourdes Pavilion, which included a health, wellness and fitness center, physical therapy, primary care, a drive-through pharmacy, and lab services. Other projects involved an aquatic swim center featuring three pools and group studios, among other things. Also included was the addition of the two-story Beer Tree restaurant and brewery, and Broome County is utilizing on-site office space, with more than 200 employees working at the location. All told, the redeveloped building now has over new 500 employees and “attracts thousands of daily visitors.” Still home to several successful retail outlets, the former Oakdale Mall, which opened in 1975, has close to 964,000 square feet of usable space. Johnson City, which was also a round six winner in the state’s Downtown Revitalization Initiative and was among the first communities to be certified under the governor’s Pro-Housing Communities program, Hochul’s office noted.