The additional funds from this year's budget bring the total budget for the project to $33 million.
The team behind eateries SHI and Skinny's Cantina will be taking over the shuttered Borden Avenue space.
A plaque was installed in the park this weekend to honor longtime advocate Bill Bylewski.
There will be no parking from 44th Drive to 54th Avenue between Vernon Boulevard and the East River.
A petition calling for a school to be built at the affordable housing site has more than 400 signatures.
The expansion will complete the park, the first portion of which opened in summer 2013.
The park will be closed on July 4 so that Macy's can use it as a command center, a spokesman said.
Acclaimed chef Rocco Sacramone and Tommy Demaras, who owns Cavo, will open Maiella next month.
The outdoor flea market will return to Hunters Point for the season the weekend of April 11.
Cablevision and Time Warner Cable subscribers will get free access, while others can pay 99 cents.
A sign on the door of the Queens eatery said it was closing "with deep regret and heavy hearts."
Monday is the last day to apply to one of the permanently affordable units at the Long Island City site.
The new market opened at 50-01 2nd Street on Nov. 14.
Participants in the "Silent Disco" will get headphones, which will play tunes spun by two DJs.
General Tso'Boy will launch Saturday, serving its signature po'boy-style sandwich.
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