Cole Hall has been closed since a gunman entered a class lecture and started shooting. Five students were killed and 19 were wounded on Feb. 14, 2008.
The renovation will reconfigure the building that had two of the university's large lecture halls. The room in which the shootings occurred will be closed to classroom instruction and reused as computer labs, offices and commons areas.
Another $2.3 million in state money will go toward building a new lecture hall at the Stevens building.
The money is coming from the state's capital construction plan, which the Legislature and Gov. Pat Quinn approved last year.