The Michigan Natural Resources Trust Fund board is recommending that $5 million be allocated to purchase land on Keweenaw Point.
The property would be added to Fort Wilkins State Park. Officials had originally requested $16.4 million for the project.
The recommendation is the largest of 45 recreation development and land acquisition endorsements made by the board, and the only one in the western Upper Peninsula.
All of the recommendations must be approved by the legislature.
The Michigan Natural Resources Trust Fund is a restricted fund that was established in 1976. It uses revenues from state-owned oil, gas and mineral rights to provide funding for public acquisition of land, as well as for public outdoor recreation development projects.