Mayor Tylec Touts Development Push, Budget Stability During North Tonawanda State of the City

     Mayor Austin Tylec used his annual State of the City address at the Riviera Theatre to highlight a wave of residential development, infrastructure upgrades and redevelopment efforts underway across North Tonawanda, while also defending the city’s financial management amid ongoing labor tensions and rising project costs.

     Framing the city as one on the upswing, Tylec pointed to visible construction activity and what he described as steady fiscal footing.

     “North Tonawanda is a city that is moving forward, and it is doing so with intention,” Tylec said Tuesday. “The progress we’ve made is real. It is visible in our neighborhoods, in our infrastructure, in our financial stability, and in the strength of our local economy.”

     The mayor’s remarks come as the city adopts a $48.3 million budget for 2026 with projected sales tax revenues of $11.4 million, roughly $500,000 higher than the previous year. Tylec attributed the increase to continued commercial activity and development, along with new revenue streams including cannabis sales tax, the collection of overdue water and sewer bills, REM foreclosures and improved performance at the city-owned Deerwood Golf Course.

     “These revenue sources strengthen the city’s financial position without shifting additional burden onto taxpayers,” Tylec said, noting that the budget calls for less than $50 in additional taxes for homeowners. “allowing us to maintain services, invest responsibly and continue rebuilding reserves.”

     Still, while the administration points to balanced budgets and growing reserves, critics have questioned whether long-term costs tied to large-scale development projects and infrastructure improvements could eventually strain city resources.

     Among the projects scheduled for completion or groundbreaking this year are a $2.3 million extension of the Sweeney Street bike path intended to connect Mayor’s Park with the Botanical Gardens; a realignment of the 19th Street and Meadow Drive intersection; and a $3.2 million walkability initiative on Oliver Street that will add sidewalks, lighting, seating and green infrastructure.

     The city also plans to complete work at Charles Fleishmann Park, which includes a new clock tower and streetscape upgrades. Construction is expected to begin on the $8.4 million Payne Park Aquatic Center, a facility that will feature a shallow play area, lap pool with diving boards, locker rooms and a concession stand.

     Tylec announced the launch of a sidewalk repair pilot program funded with $30,000. The city will reimburse homeowners for up to 50% of eligible sidewalk repair costs on a first-come, first-serve basis.

     The mayor devoted significant attention to what he described as one of the city’s most transformative undertakings, which is the 78 Bridge Street development on Tonawanda Island. The 80-unit mixed-use residential complex, projected to cost more than $30 million, is expected to break ground in June and be completed by 2028. It will mark the first new housing project on the island in decades.

     The three-story structure will include more than 100,000 square feet of mixed-use space along the waterfront. In December, the city secured $2.5 million in Regional Economic Development Council funding to support infrastructure work at the 3.3-acre site with developer VisoneCo responsible for matching costs. The project also received $750,000 in Downtown Revitalization Initiative funds to make the riverside frontage publicly accessible.

     “It supports not just 78 Bridge Street but other adjacent parcels there,” said Tylec. “We look at the island as something that could be built out to half a billion dollars.”

     Additional housing proposals are also advancing. Hamburg-based Alliance Homes is seeking to build nearly 90 units at 235 River Road while People Inc. has proposed converting a former bed tower at DeGraff Hospital into senior housing.

     Tylec acknowledged that redevelopment efforts will require careful coordination and infrastructure investment but emphasized the broader economic potential. He also signaled that the administration will continue to pursue large-scale funding opportunities including $30 million in federal grants to support redevelopment of the Twin Cities Memorial Highway corridor.

     The city is nearing completion of a study examining options for that highway’s future and plans to hire an engineering firm to design approximately 16,000 feet of new cart paths at Deerwood Golf Course. Talks are also ongoing with the Niagara County Land Bank, state agencies and two private partners regarding a proposed $40 million redevelopment of the former Lowery Middle School into residential or senior housing.

     While the mayor outlined an ambitious list of initiatives, not all of the evening’s focus was celebratory. Prior to the address, nearly 70 members of the city’s Department of Public Works union gathered outside the Riviera Theatre in protest as contract negotiations with the city continue. The workers are seeking improved wages and contract terms.

     The demonstration underscored ongoing tensions between city leadership and labor groups even as the administration touted economic growth and investment.

     During his speech, Tylec acknowledged the union members and said he would meet with both sides Wednesday, expressing confidence that an agreement could be reached.

However, no such deal was publicly reported.

     Beyond bricks and mortar, Tylec said another priority for 2026 will be addressing neighborhood blight and absentee landlords. The city’s rental registration and compliance program has registered about 65% of rental properties to date. Fees generated through the program are being used to develop a new online platform that will allow residents to submit code complaints, apply for permits, manage contractor licenses and handle rental registrations.

     The mayor said the city needs greater transparency regarding property ownership and safety compliance.

     “This is part of the program that we really need to understand who owns what properties, what safety features they have to include, and what code improvements,” Tylec said.

     Tylec concluded his remarks by arguing that North Tonawanda’s recent progress positions it to compete for larger state and federal investments in the future.

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Mayor Tylec Touts Development Push, Budget Stability During North Tonawanda State of the City