The state has issued the first round of funding for the Assembly Square Project in Somerville.

The $10 million in funding, through the Commonwealth’s innovative Infrastructure Investment Incentive Program (I-Cubed), will help create thousands of new jobs in Somerville and throughout the region, according to a statement.

The I-Cubed funds will support the first phase of public infrastructure improvements at Assembly Square, primarily roadway infrastructure to facilitate construction of an IKEA store. The first phase in development of the site is expected to create 500 new jobs.

"Assembly Square is a great project for the Commonwealth, and I am excited to see it moving forward," said Gov. Deval Patrick. "This project will put people to work and deliver a host of economic, housing and community benefits to the region."

The "Assembly on the Mystic" project is expected to revitalize a 66.5 acre neglected industrial site in Somerville. In addition to supporting IKEA, the first phase of construction will create roadway infrastructure improvements that will also assist the new MBTA orange line station at Assembly Square, public parks, and public roadways.

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 160-200 room hotel.

The Patrick administration, MassDevelopment, the city of Somerville and FR Sturtevant Street LLC, the project’s developer and a subsidiary of Federal Realty Investment Trust, have been working collaboratively together to move this project forward.

"Particularly in these challenging economic times, targeted investments like the Assembly Square Project are vital to the Commonwealth," said Administration and Finance Secretary Jay Gonzalez. "I am happy to see that our innovative I-Cubed program is working to help create new jobs and set Massachusetts on course for growth."