The new grant will pay for clean up, demolition and asbestos removal.
State economic officials say it's the first step.
"What we really know, we need to do, is redevelop this property and turn it back into economic usefulness that creates jobs," said Warren Ribley of the Dept. of Commerce and Economic Activity.
Possible plans for the site include shopping, light industry and housing. There is no word on when the demolition will begin.
