Buffalo Breaks Ground on $225 Million North Aud Block Project
The long-vacant former Memorial Auditorium site will become a mixed-income neighborhood with 251 apartments, businesses and public space.
Buffalo North Aud Block construction is officially underway, launching a $225 million project that will turn a vacant section of Canalside into 251 apartments, commercial space and a new public plaza.
Gov. Kathy Hochul announced the start of construction Monday, July 20, saying the project will help reconnect downtown Buffalo with its historic waterfront. The development is planned for the former site of Buffalo Memorial Auditorium, commonly known as “the Aud,” which closed in 1996 and was demolished by the state in 2009.
The project represents one of the largest remaining pieces of Canalside’s long-running redevelopment. It also comes after years of planning, revisions and public debate over how the valuable waterfront property should be used.
“For too long, the North Aud Block has sat in the shadow of Canalside as a vacant reminder of the past,” Hochul said. “Today, we are rewriting its future as a vibrant destination on Buffalo’s historic waterfront.”
What Is the North Aud Block Project?
The North Aud Block is a mixed-use development planned for the land immediately north of Canalside’s recreated historic canals.
Developer Pennrose plans to construct a combination of affordable and market-rate housing, storefronts, parking and public gathering areas. The project is designed to bring permanent residents to a waterfront district that has largely been known for recreation, tourism and major events.
The development will include:
- 251 studio, one-, two- and three-bedroom apartments
- 187 income-restricted affordable apartments
- 64 market-rate apartments
- 18,000 square feet of commercial space
- 20,000 square feet of public and community space
- 137 parking spaces
- Electric-vehicle charging stations
- Accessible and adaptable apartments
The affordable units will be available to households earning up to 80% of the area median income. State officials said the range could include working residents such as teachers, nurses, childcare employees, first responders and bus drivers.
A New Residential Neighborhood at Canalside
Canalside has grown into one of Buffalo’s most visible recreation and tourism destinations. However, much of the area has lacked the permanent residential population found in a traditional city neighborhood.
State officials believe adding hundreds of residents could create year-round activity and generate more support for restaurants, retailers and other businesses.
Empire State Development President and CEO Hope Knight said the project would increase foot traffic while bringing more housing choices into downtown Buffalo.
“This mixed-use development will not only drive foot traffic to Canalside, but it will also inject needed, diverse housing options directly into downtown Buffalo,” Knight said.
The development will sit near KeyBank Center, home of the Buffalo Sabres and Buffalo Bandits, and within walking distance of downtown offices, public transportation and waterfront attractions.
Pennrose describes North Aud as a gateway between downtown Buffalo and the canal system, with a layout intended to invite pedestrians into the development from several directions.
Design Will Reflect Buffalo’s Waterfront History
The North Aud Block design is intended to recall both the former auditorium and the neighborhood that existed before major urban-renewal projects changed Buffalo’s waterfront.
The buildings will follow portions of Buffalo’s original 19th-century street grid. Exterior materials will include exposed brick, terracotta, stone and metal panels designed to complement nearby historic structures.
A 20,000-square-foot plaza will be built along the canal. Plans call for landscaping, seating and design features that provide protection from wind while helping the area retain warmth during colder months.
The project will also stand on land once occupied by Buffalo Memorial Auditorium, a venue closely tied to the city’s sports and entertainment history.
The Aud opened in 1940 and later became the longtime home of the Buffalo Sabres and other teams and events. It closed when the arena now known as KeyBank Center opened in 1996.
“The historical significance of developing the North Aud Block on the same parcel where the Buffalo Memorial Auditorium once stood shouldn’t be ignored,” Assembly Majority Leader Crystal Peoples-Stokes said.
Affordable Housing Is Central to the Plan
Of the 251 apartments, 187 will carry income restrictions. That means roughly three-quarters of the project’s homes will be classified as affordable under the development’s financing structure.
The remaining apartments will be offered at market rates.
New York Homes and Community Renewal Commissioner RuthAnne Visnauskas said the housing is intended for people with different incomes and household sizes.
“This $225 million transformational development will help revitalize the Buffalo Canalside neighborhood and celebrate the Aud’s history while also providing housing for individuals and families of all incomes,” Visnauskas said.
The project is receiving major public support through several housing and economic-development programs.
Funding includes:
- More than $30 million in projected equity from federal Low-Income Housing Tax Credits.
- More than $35 million in projected equity from state Low-Income Housing Tax Credits.
- $65 million in housing subsidies from New York State.
- $12 million through the NY-RUSH economic-development program.
- $10 million from the New York Works Economic Development Fund.
- $2.5 million from the Regional Council Capital Fund Program.
The former industrial site is also participating in New York’s Brownfield Cleanup Program. Once the required cleanup work is completed, the development could qualify for approximately $20 million in state tax credits.
Project Will Be All-Electric
North Aud is planned as an all-electric development.
The buildings will use heat pumps, energy-recovery ventilation, water-saving fixtures and ENERGY STAR appliances. Electric-vehicle chargers will also be available.
State officials said the development will contain 13 apartments designed to accommodate people with mobility disabilities and six units for residents with hearing or vision-related disabilities. All apartments will be accessible or adaptable.
Those features connect the project to the state’s broader housing and climate goals. Hochul’s five-year housing plan calls for creating or preserving 100,000 affordable homes and electrifying an additional 50,000 homes statewide.
As of July 2026, the administration said more than 81,000 affordable homes had been created or preserved under that plan.
Questions Raised About the Development
The project has not moved forward without criticism.
Some Buffalo developers and business leaders have questioned whether such a prominent waterfront parcel should include such a large share of income-restricted housing. Critics have argued that earlier visions for the site placed greater emphasis on commercial activity, attractions and projects capable of producing more direct tax revenue.
A June report by WKBW described opposition from a group that said the development had moved away from the original concept for the North Aud Block. At that stage, the project was publicly described as costing about $189 million, illustrating how the reported price changed as financing and construction plans were completed.
Supporters counter that downtown Buffalo needs housing at several income levels and that a residential population is necessary to create steady activity beyond sporting events and summer tourism.
That debate reflects a larger question facing cities across New York: Should prime public land be used mainly to maximize immediate revenue, or should some of it be used to create mixed-income neighborhoods in areas where lower- and middle-income households might otherwise be priced out?
The North Aud project attempts to do both by combining affordable housing, market-rate apartments, storefronts and public space. Its long-term effect will depend on whether the promised businesses open, the plaza remains active and the development connects naturally with the rest of downtown.
Part of a Larger Canalside Transformation
The North Aud development is one piece of a much broader effort to rebuild Buffalo’s waterfront.
In November 2025, the state opened The Chandlery, a four-story visitor center and retail building designed to resemble structures that stood near the Erie Canal during the 1800s. The building includes about 14,000 square feet of space.
A public artwork called “Destination” also debuted as part of the Erie Canal’s bicentennial commemoration.
Other projects at Canalside have included reconstructed canals, public walkways, the Explore & More children’s museum, the Buffalo Heritage Carousel and new commercial and residential buildings.
North Aud is expected to strengthen connections among those attractions, KeyBank Center and the rest of downtown.
What Happens Next?
Construction will now move forward on the buildings, apartments, commercial areas and public plaza.
State officials did not provide a firm completion date in the July 20 announcement. Large mixed-use developments can take several years to finish, particularly when environmental cleanup, public funding and several construction phases are involved.
Residents should also expect continued discussion about affordability, commercial tenants, public access and how the completed project will affect the larger Canalside district.
A Major Test for Buffalo’s Waterfront Vision
The start of Buffalo North Aud Block construction ends years of uncertainty for one of the most visible vacant sites on the city’s waterfront.
The project promises 251 homes, new businesses and a public plaza while preserving reminders of the former Memorial Auditorium and Buffalo’s canal-era street system.
It is also a test of whether publicly supported, mixed-income housing can strengthen a high-profile entertainment and tourism district.
Buffalo residents should follow the project closely, ask how public funding is being used and measure its success by more than the appearance of the finished buildings. The real test will be whether North Aud creates an active, accessible neighborhood that serves residents, workers, businesses and visitors throughout the year.
