Speaking before community leaders, business owners, and elected officials, Shapiro said he has seen renewed optimism in the city.
"What I've seen over the last year or so is a pride that has reemerged in this community," Shapiro said.
The investment will be divided among nine projects throughout the city.
"This is a true collaboration between state and local government, between community leaders and business, unlike anything Chester has seen in decades," Shapiro said.
The largest portion of the funding, about $52 million, will go toward Route 291. The project includes redesigning the roadway with a focus on safety improvements.
Another $27 million will support the Waterfront Sportsplex, including the construction of new fields and the expansion of youth programs in partnership with the Philadelphia Union.
An additional $13 million will be used to improve access between the city and Widener University and to renovate a building on the university's campus.
The remaining approximately $5 million will fund projects in downtown Chester.
Sister Maggie Gannon of the Access Chester Community Center said the investment could have a significant impact on the city.
"I think it's going to be a big change agent, because there are good people here but we didn't have the money to do what needed to be done," Gannon said.
Mayor Stefan Roots said downtown funding will help address blight and support neighborhood improvements.
"Removing the dangerous blighted properties and prepare those sites for redevelopment. We're going to be repairing homes. We're going to be investing in public art and neighborhood beautification," Roots said.
One of the blighted properties targeted for redevelopment is an old church at West Third and Parker streets. City officials said the building will be demolished and redeveloped.
The new investment comes as other funding has already been directed to community organizations in Chester. The Boys & Girls Club of Chester received $100,000 to expand its summer camp programming.
"During the summertime, we were going to have about 100 or so kids. With the additional money, we were able to add 50 more kids," said Derrick Billups, CEO of the Boys & Girls Club of Chester.
Billups said the funding helped ensure neighborhood children had a safe place to go during the summer.
Additional funding is also being directed to anti-violence organizations and the city's block captain program.
The investment package is intended to support a range of initiatives, from transportation and redevelopment projects to youth and community programs across Chester.