When fully built out, Tuscan Village will feature hundreds of housing units, a large Market Basket, almost 1 million square feet of office space, 800,000 square feet of retail space and two hotels spread over 170 acres. Image courtesy of Tuscan Brands

The town of Salem and the developers of the Tuscan Village mega-project have come to an agreement on a key deal that will allow the project to move forward.

The town’s Board of Selectmen unanimously approved a deal on May 28 that will see developer Joe Faro pay the town $38 million, including $14.2 million in direct improvements to the town, the Lawrence Eagle-Tribune reports. The remainder of the money will come in the form of $24.3 in development impact fees, for the town to use as it sees fit.

The memorandum of understanding was necessary for Faro’s team to apply for building permits for the remaining phase of the project.

Tuscan Village is a 170-acre project on the site of the former Rockingham Park race track. The project will ultimately have 1 million square feet of class A office space at full buildout along with a park, lake and large, T-shaped shopping and entertainment street. The project’s first, 50-acre phase has already been built, featuring a Market Basket, a car dealership, 96 townhomes and 260 apartment units. A 281-unit apartment building was recently approved, as well.