WEST WARWICK, R.I. (WPRI) — State and local leaders gathered Monday to mark the beginning of a project to repurpose a 19th century textile mill in West Warwick.

The Arctic Mill, situated along the Pawtuxet River, will be transformed into a mixed-use complex, officials said. The space will feature 136 apartments, 31 of which will be set aside for households earning at or below the Area Median Income, along with 10,000 square feet for offices, retail locations and a brew pub.

Gov. Dan McKee, U.S. Sen. Jack Reed and Congressman Jim Langevin said the $32.7 million project will be funded by federal historic tax credits, the Rebuild RI Tax Credit program, RIHousing’s Workforce Housing Loan, and developer equity.

Reed told 12 News there is a desperate need for more affordable housing.

“This will begin a renaissance and redevelopment of the whole community,” he added.

In a news release, McKee highlighted the need for a multifaceted effort to address the housing crisis.

“For Rhode Island to be an attractive place to live, work, and raise a family, we must address the availability and quality of housing – that means everything from providing supports to those experiencing homelessness, to increasing affordable housing, to ensuring we build more workforce housing for our middle-class families,” he said.