ALBANY, N.Y. (AP) — Pocket neighborhoods and a festival featuring brewery-themed boats are the winning projects in a $2.5 million state competition seeking innovative ideas to boost economic activity and tourism along New York state's 524-mile canal system.

Gov. Andrew Cuomo announced Wednesday that the winners of the Reimagine the Canals Competition were drawn from a field 145 entries. The Democrat says the first winning team will get $1.5 million to develop its plan to build pocket neighborhoods along the Erie Canal. Plans call for a pilot project in Canastota, 25 miles (40 kilometers)east of Syracuse.

The second winning team is getting $500,000 to create Erie Armada, a multi-day festival and boat race centered on breweries. The first armada is planned to sail between Baldwinsville and Phoenix, northwest of Syracuse.

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