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Briggs said the first wave of construction will include retail shops, public parks and multi-family housing. The downturn in the economy may prevent initial construction of office space, he said.
Federal stimulus funds, about $15 million, went to build Assembly Square Drive and more federal funding is expected for the train station.
Mayor Joseph A. Curtatone said this week's state funding "will allow the city of Somerville to reclaim its waterfront along the Mystic River."
"The Assembly Square project is critical to the continued growth and vitalization of our community, placing housing, offices and retail along a stretch of river long blocked off to our residents by highways and heavy industry," Curtatone said in a statement.
Once completed, Assembly Square will be a mixed-use, transit-oriented development with 18 buildings, 2,100 residential units, 1.8 million square feet of office space, 1.1 million square feet of retail space that includes restaurants and a cinema and a 160 to 200 room hotel.
State officials said the first phase of development will create 500 new jobs.
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