Ogdensburg moves forward with sale of Diamond National site for shipyard

Ogdensburg is moving forward with the sale of about 9.3 acres at 1 Madison Ave. to J.E. Sheehan Contracting of Potsdam for $175,000. The property is part of the former Diamond National paper mill site, and the proposed Ogdensburg Shipyard would create a waterfront boat repair and storage facility.

The plan includes a roughly 10,000-square-foot building, reconstruction of the existing pier, a 150-ton mobile boat lift and boat fuel sales. It also calls for water, sewer, stormwater and access improvements. The project has been estimated at at least $3 million, and City Manager Fonda Chronis said it would not cost taxpayers while potentially generating about $85,000 annually in city property and sales tax revenue.

The sale followed a public hearing and requires financing, insurance, environmental and other government approvals. The agreement calls for at least 10 full-time-equivalent jobs within 12 months after completion and requires the property to remain in water-dependent use for at least 10 years. Public pedestrian access would be maintained along an agreed section of the riverfront, although temporary closures could occur during marine operations.

The city owns the 15.4-acre former mill property and would retain the adjacent 2 Madison Avenue parcel, which covers just under six acres, for possible future use or sale. Ogdensburg took possession of the site in 1992, and cleanup has cost nearly $3 million, primarily through New York’s Environmental Restoration Program.

The city selected J.E. Sheehan’s proposal from five submissions after issuing a request for proposals in October 2025. An earlier proposal for a marina, condominiums, hotel and clubhouse was selected in 2021 but later fell through. Some residents have questioned the project’s potential job impact and whether a shipyard is the best use for the waterfront property.

The developer’s timetable calls for foundation, utility and road work during the fall and winter. Permitting and construction of the lift and docks are planned for spring 2027, with the first phase projected to open in June or July 2027. A second phase would add a marina with transit docks for boats up to 40 feet and a public waterfront walkway.

The city could take the property back if substantial completion does not occur within 24 months of closing, subject to extensions. Updates on the Oct. 13 resolution and closing status are available through the Ogdensburg city clerk and the city’s Diamond Waterfront Site Request for Proposals.