Holyoke Gets State Support to Revitalize Downtown Economy

Six Massachusetts cities just got a major boost to transform their struggling downtowns into vibrant economic hubs, and Holyoke is leading the charge with proof it works.

The city will receive a full-time development fellow and new state investment through MassDevelopment's Transformative Development Initiative. This program places expert planners directly in communities to guide projects, connect businesses with grants, and attract private investment to downtown neighborhoods.

Holyoke already knows this approach delivers results. Carlos Peña and Katy Peña Moonan dreamed of restoring a vacant historic building on High Street but couldn't afford the million-dollar price tag on their own. With MassDevelopment's support, they transformed the crumbling National Register property into Paper City Clothing Company, complete with a community art gallery and event space.

The three-year, $700,000 renovation mixed public and private funding in ways the couple never could have accessed alone. They told reporters that renting simply wasn't sustainable if they wanted to keep offering free community programming, but renovating felt impossible until this support arrived.

Their success story represents exactly what state leaders hope to replicate across Gateway Cities, mid-sized communities that have historically struggled to compete for economic development resources.

The Ripple Effect

Since 2015, this initiative has invested $50 million directly into participating districts. That seed money has attracted hundreds of millions more in additional public and private investment, creating a multiplier effect that strengthens entire regions.

The new Gateway Network will connect past and current program participants so local leaders and small business owners can share strategies and solve problems together. When one city figures out how to finance a tricky renovation or attract a new business type, others can learn from their playbook.

Economic Development Secretary Eric Paley says the program helps communities "strengthen local partnerships, support small businesses, foster vibrancy, and lay the groundwork for additional investment." Translation: it creates momentum that builds on itself.

Rep. Antonio Cabral, who co-chairs the Gateway Cities Legislative Caucus, emphasized that these investments don't just help individual towns. "They create ripple effects that benefit our entire state and regional economy for years to come," he said.

For Holyoke, this latest designation continues years of focused work on downtown revitalization. The city participated in earlier TDI rounds and has centered much of its recent development strategy on transforming its urban core from scattered vacancies into connected, active spaces where people want to live, work, and gather.

More vacant buildings could soon follow Paper City's path from eyesore to asset, bringing jobs, services, and renewed pride to neighborhoods that haven't seen this level of coordinated support in generations.