National Grid is sending the city a grant of up to $190,000 to help install infrastructure at the Buffalo Bolt Business Park.
The money will be available to reimburse costs of developing the 23-acre Oliver Street site, National Grid spokesman Stephen Brady said.
Buffalo Bolt was a company formerly located on the property; Roblin Steel later located there, and the site was considered a brownfield after its closure. The state and city spent $3.4 million to clean it up.
Brady said the grant application was submitted by the Lumber City Development Corp., the city's development agency. He said National Grid worked on the deal with Mayor Lawrence V. Soos and Niagara County Legislator Andrea L. McNulty, D-North Tonawanda.
Soos said that along with a $1.2 million state Dormitory Authority allocation lined up last summer by Assemblyman Robin L. Schimminger, the city has plenty of money available to start redeveloping the site.
McNulty said the county Center for Economic Development played an important role in compiling the application.
"I sat down with Lumber City and Sam's office several months ago," McNulty said, referring to county Economic Development Commissioner Samuel M. Ferraro. "I knew we stood a good chance [of winning the grant]. We met all the criteria."
Soos said the city already has chosen an engineering firm, TVGA Consultants, to design a road into and out of the site.
He said design can now begin, with hopes of construction commencing this summer.