Riverhead signed a deal Tuesday to transfer ownership of more than 1,600 acres of land to the town's Industrial Development Agency.

The agreement comes as the town is trying to entire businesses to a mostly-undeveloped piece of property in Calverton.

The federal government transferred ownership of the property formerly owned by Grumman to the town of Riverhead in the 1990s.

For decades, Riverhead has tried to make the site a hub of business activity, but it's remained largely unused

"Once there's an approval from the IDA, we immediately receive our funds of $40 million," says Riverhead Town Supervisor Yvette Aguiar. "We anticipate the funds are going to lowering taxes."

The town of Riverhead is also hoping the agency will partner with Suffolk County, the state and private enterprises to entice private businesses to the site.