Middletown Mayor Joe DeStefano showed New York Secretary of State Walter Mosley what his team has done with a state grant worth $10 million that the city won in 2016.

The annual Downtown Revitalization grant helps municipalities with small budgets take on large projects to improve their downtown neighborhoods.

Middletown was among the first communities to receive the grants after the competitive grant program began in 2016.

Through the grant money, Middletown was able to fix several building facades, update streets, update small parks and rescue the crumbling Woolworth Building on North Street.

DeStefano told News 12 the various projects led to 70 downtown buildings being bought in the last nine years, bringing in another $60 million in private investment.

He said the figures help explain why the grant was worth it, though the process, at times, has been painful.

"We do have some business failures like anywhere else," DeStefano said after his downtown tour with Secretary Mosely, "but at the same time, we have people backed up, ready to come in, and fill that void."

Trace Martin and his partners moved their bakery, North Wind Bread Company, to the Woolworth Building three years ago.

Martin said that since they set up shop, foot traffic — the backbone of their business -- has steadily increased along with sales.

"You feel like a buzz that wasn't exactly here when we first started," he said. "That feels good for us."

Some downtown business owners are already considering expansions or entirely new shops in the area.

Rakesh Nayak, owner of Mr. Coissant, is celebrating the bakery's first anniversary this weekend.

He said the first year went so well he is now planning to open a deli nearby.

"It's been a fantastic year," Nayak said. "Our community has welcomed Mr. Croissant so well...It's been a blessing."

Mayor DeStefano said the city is courting several more projects for downtown, including a hotel.

To make those projects feasible in a small city with a small budget, DeStefano is seeking more economic development grants from the state.

Middletown has a population of about 30,000 and its government has an annual budget of just under $70 million.