Developers and local leaders broke ground Friday on a new Hilton boutique hotel in Cornwall that supporters say will breathe new life into the center of town.

The $12 million state-backed project will rise on the site of the old Bernicker Garage, a long-vacant property in the heart of town that had fallen into disuse and was closed for many years.

Officials say the development, called Cornwall Arms, will bring jobs, tax revenue and tourism dollars while still preserving the small-town character that makes the community unique. They expect the project to put Cornwall “on the map” as a Hudson Valley destination when it opens in 2026.

The ceremony drew a high-profile lineup of local and regional leaders, including State Sen. James Skoufis, Orange County Executive Steve Neuhaus, representatives from Hilton Hotels, Empire State Development and the Orange County Industrial Development Agency. Leaders from both the Cornwall and Orange County Chambers of Commerce also attended.

But the project has sparked mixed reviews from residents. Some worry the development could change the look and feel of Cornwall’s historic center, increasing traffic and altering the small-town lifestyle they value.

Officials say they remain committed to balancing growth with preservation as construction moves forward.