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Nearly $3 million in state grants have been awarded for two projects in the Glove Cities - one to build 25 condominiums at the old Estee Middle School in Gloversville and one to build three duplexes in Johnstown at the old H&J Leather Corp. site.

Local projects were among $153.6 million in Restore NY funds announced Wednesday to communities across the state as part of the third round of the grant program, Gov. David A. Paterson announced.

A total of $2.5 million is being awarded to continue work to restore the former Estee Middle School in downtown Gloversville into viable housing. The Fulton County Economic Development Corp. and its real estate component - Crossroads Incubator Corp. - a few years ago converted the part of the old middle school facing Fremont Street into 39 upscale apartments. The Estee Commons facility generally has been more than 90 percent occupied, officials have said.

The EDC and CIC are now preparing to convert the other large part of the old school complex facing North Main Street into 25 condominiums, and news of the $2.5 million award was welcome.

"It's very good news," EDC Chief Operating Officer Michael Reese said Thursday. "We were hoping the application would be successful."

The governor's office, through a news release, said the project "would result in a multimillion-dollar investment in downtown Gloversville, put a prominent vacant building back into productive use, make a substantial contribution to the city's tax base and bring residents back into downtown."

At this point, Reese said, plans for the project involve just housing. There are no future commercial or retail uses planned at the site.

He said there is still a lot of "legal work" that needs to be done before the project can begin.

"I think if everything goes the way we hope it goes, we hope to break ground by spring of 2010," Reese said.

The city of Johnstown also was awarded $420,000 for a housing project it is doing with developer Brian Hanaburgh at Collingwood Avenue and North Perry Street, partially at the old H&J Leather Corp. site.

Hanaburgh, managing partner of H&K Realty, spoke in April to the Common Council about his company's efforts to create three duplex residences on vacant lots on North Perry Street.

Hanaburgh approached city officials about H&K Realty's plans to develop parcels at 17 Collingwood Ave., 312 N. Perry St. and 314 N. Perry St. The former H&J Leather Corp. and Gloria's Pizzeria once occupied the North Perry Street addresses. All three properties are vacant and classified as residential. The city has demolished two old commercial and industrial buildings on the 1.1-acre, three-parcel site near the city center. The city will transfer ownership to H&K.

Each of the six housing units is approximately 1,355 square feet.

These homes will be constructed to conform to the current market and neighborhood needs. Access to two of the duplex townhouses will be off of Collingwood Avenue, and the third townhouse will be off of North Perry Street.

This project fulfills the objectives and needs identified in the city's Comprehensive Plan and the project will also leverage the city's Brownfields Opportunity Area program, the governor's release said.

In a news release issued Thursday, Johnstown Mayor Sarah J. Slingerland said, "This redevelopment project highlights the success of a public-private partnership to revitalize our community. The grant award is a nice step forward for the city of Johnstown as we continuously seek to revitalize and improve our community."

Neither Slingerland nor Hanaburgh could be reached for comment.

Michael Anich covers Johnstown and Fulton County news. He can be reached at johnstown@leaderherald.com.