Developers and the mayor hope to bring more than 250 jobs to the city.
Construction is underway off Exit 11 on Interstate 75 in Williamsburg on a new development site.
Infrastructure problems with water and sewer at the Whitley County Health Department got the project started.
"The health department is going to be expanded pretty significantly. And there wasn't adequate water service to support that. And of course, when you have water, you have to have sewer, so that's the primary driver in the city's project," said Phil Meader, one of the site's developers.
"It was basically infrastructure upgrade to get it to the health department, which spurred all this other stuff happening. It's kind of been like a domino effect really. And it's been great," said Roddy Harrison, Mayor of Williamsburg.
Now, Tractor Supply, a new health department, motel, and medical facilities are in the works on the 36-acre site.
Other businesses are being discussed to bring more people to the city.
The mayor says the community is excited about a new casual restaurant, which is something he says Williamsburg needs.
The project is creating a huge opportunity for the city.
"Hopefully, what we are looking at and anticipating is a 39 million dollar investment into the city," said Mayor Harrison.
With severance money in place, the project can continue to move forward.
Engineers say the water and sewer lines should be in place within two months.