The grant was announced by Rep. Louise M. Slaughter, D-Fairport, and will be used to fund the construction of 1.6 miles of sewer lines on Grand Island Boulevard.

Slaughter joined town officials Monday to announce the federal funding.

Most of the strip is commercial and zoned for businesses, but there are a few homes along the way. The current businesses and residences use septic systems.

Town Supervisor Peter A. McMahon said the lack of a sewer system in that area has been a deterrent for businesses. But the not-yet-completed system already is attracting businesses. A therapy center opened in January because owners knew a sewer system was in the works, McMahon said.

The grant will help reduce the cost to taxpayers, McMahon said.

"We are grateful to Rep. Slaughter for the grant," McMahon said. "It allows us to pay for 25 [percent] to 30 percent of the project, so business owners and residents won't have to pay that. And it will help make economic development possible."

McMahon said the construction, which has started and will be completed in a couple of months, cannot exceed $1.1 million, but the actual cost will be in the neighborhood of $900,000.

He said the project includes townwide lift station improvements, so the entire sewer district has to contribute $100,000 toward the new sewer system. The rest of the costs will be covered by the businesses and residents benefiting from the project.