Former Butler Correctional Facility Officially Transferred for Redevelopment

Aerial view shows a large correctional facility with fenced compounds, numerous buildings, and roads, surrounded by dense forest.
Photo: Empire State Development

The former Butler Correctional Facility is officially headed toward a new future after New York State completed the transfer of the property to a local business that plans to expand its operations and create new economic opportunities in Wayne County.

Empire State Development announced last week that the 201-acre property has been transferred to the Wayne County Industrial Development Agency, which then conveyed ownership to Westbury Lumber. The company was selected through a competitive request-for-proposals process.

Westbury Lumber, a wholesale hardwood sawmill company that has operated next to the former prison for more than two decades, plans to repurpose much of the site for expansion and storage. Company officials said the acquisition will help the business grow beyond its current high-end Northeast markets and expand into worldwide markets.

Empire State Development President, CEO and Commissioner Hope Knight said the transfer reflects the state’s commitment to finding new uses for underutilized properties while supporting economic growth and job creation.

Wayne County Industrial Development Agency Executive Director Brian Pincelli called the redevelopment a major milestone for the community, thanking Empire State Development staff and Westbury Lumber for working together to complete the transaction.

Westbury Lumber owner Jason Smith said the purchase represents a significant investment in Red Creek and Wayne County that will create new opportunities while supporting the region’s long-term economic vitality. He credited state and local partners for helping bring the project to completion.

The Butler Correctional Facility closed as part of New York’s prison consolidation efforts. In 2022, Governor Kathy Hochul established the Prison Redevelopment Commission to identify new uses for former correctional facilities and encourage redevelopment projects that benefit local communities.

The Butler project is one of several former prison redevelopments underway across the state. Empire State Development previously helped transfer the former Livingston Correctional Facility for redevelopment as a business park and is continuing work with developers on plans to transform the former Downstate Correctional Facility in Fishkill into a mixed-income housing development.

Department of Corrections and Community Supervision Commissioner Daniel Martuscello III said the Butler redevelopment demonstrates how former state-owned facilities can be transformed into assets that generate jobs and economic investment through partnerships between state agencies and local communities.

Local elected officials also praised the project.

State Senator Pamela Helming said the transfer is the result of years of collaboration among state and local leaders and called the redevelopment tremendous news for Wayne County, the Town of Butler and the regional economy.

Assemblyman Brian Manktelow said the project has the potential to create new jobs and expand economic opportunities while recognizing the efforts of the county, the Industrial Development Agency and Empire State Development in bringing the transfer to completion.

Wayne County Board of Supervisors Chair Kim Leonard described the transfer as a major victory for the county, saying the redevelopment will return a long-vacant state property to productive use while helping preserve the area’s industrial heritage and positioning Westbury Lumber for future growth.

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