SCHENECTADY —Schenectady's downtown is getting a $10 million infusion of state funding.

Gov. Andrew M. Cuomo visited Proctors Theatre Tuesday to announce that the city is the Capital Region's recipient of the fourth round of grants from the state's Downtown Revitalization Initiative, which is awarded annually to 10 communities across the state that have presented plans to grow their economy.

Schenectady's proposal includes a pedestrian connection from Mohawk Harbor to Jay Street, facade improvements along Erie Boulevard, redevelopment of vacant buildings and subsidies for new visitor attractions at Mohawk Harbor. The county's economic development arm, Schenectady Metroplex Development Authority, is expected to contribute $7 million toward the city's plan, which is supposed to generate $128 million in private investment, according to the city's application.

Losing bids were submitted by the cities of Troy and Rensselaer, and the villages of Tannersville and Castleton on Hudson. Last year's Capital Region recipient of the funding was Albany, which is devoting the money to the Clinton Square area.

Cuomo has visited Schenectady frequently in recent years to tout state awards and funding, including the placement of a casino at the Mohawk Harbor and millions of dollars for a new train station. He credited Schenectady for actively working to rebuild its economy after shedding thousands of manufacturing jobs, and added, as he has before, that the city has the feel of "growth" and "energy."

“You can’t just sit there and wait for something to spring up on the old (General Electric) plant," Cuomo said.

He said Schenectady's application was smart and wise because it connected the energy of the "Proctors block" to the burgeoning Mohawk Harbor.

The proposed "Jay Connector," which would improve the pedestrian path between lower State Street and the harbor, includes a $2 million extension of Jay Street to Nott Street and $400,000 for lighting and gateway features in the "Little Italy" area. Pedestrian access to the Mohawk Harbor would also be aided by spending $350,00 to reopen the "Alco Tunnel Trail."

The potential new visitor attractions at the harbor vying for state funds include a $35.4 million aquatic center that will include an Olympic-size swimming pool, a diving well and an eight-lane instruction pool, and a $30 million retail and entertainment space. The aquatic center may also be a beneficiary of the state's largess next month, when funding through the Regional Economic Development Councils is awarded.

The funding may also be used to redevelop the former Pentagon restaurant and Sears on Erie Boulevard into a $45 million mixed-use development space — while demolishing the former Citizens Bank at the corner of State and Clinton streets to make way for an $18 million mixed-use project.

As part of the state’s Downtown Revitalization Initiative process, the selected projects are expected to use the allotted funds within an 18-month period. A list of projects and how much funding they will receive will likely be finalized in the coming months, as Albany produced its list of recipients in about 10 months.

Albany's list of 12 projects include creating pathways to affordable home ownership for lower-income households, turning an underused exit ramp off I-787 into a linear park and improving streetscapes in the community.

David.Lombardo@timesunion.com - 518.454.5427 - @poozer87