Rutland County Council bought the former Ashwell Prison site from the Ministry of Justice for £1.34m.
The council wants to transform the 25-acre site into a business park and make use of the on-site gym, sports hall and all-weather pitch.
The council has taken out an interest-free loan from the Local Enterprise Partnership and is using £200,000 it has received as part of developer agreements for sports and recreation.
The council also plans to sell the Ashwell Highways Depot and the business units nearby to raise funds.
The prison closed in 2011.