The construction, which started Tuesday, will involve the renovation of two historic World War II-era aircraft hangers, joined by a new third structure.

The Naval Facilities Engineering Command, which is overseeing the project, said Thursday the new facility will total about 310,000 square feet. It will house more than 700 employees and include deep water berthing for vessels.

Chicago-based Walsh Construction won the $131 million contract in August. It is financed by federal economic stimulus funds.