In a boost for the town of Chilmark nearly two years after a devastating fire destroyed the town dock in Menemsha, the Massachusetts Seaport Advisory Council announced on Thursday that it would award $629,026 to the town to put toward the rebuilding project in the historic fishing village.

The funds will specifically be used for ongoing repairs to the west dock.

“It’s still a tragedy what happened with Menemsha. Hopefully this is a bit of good news for the town. We applaud the citizens of Chilmark, who put forward so much of the funds so quickly,” Cape and Islands Rep. Timothy Madden told the Gazette.

Lieut. Gov. Timothy Murray announced the grant at a meeting with Chilmark selectmen Jonathan Mayhew and Frank Fenner in Scituate.

In addition to the lieutenant governor and his assistant Robyn Kennedy, Mr. Madden credited Chilmark executive secretary Timothy Carroll and administrative assistant Diana DeBlase for their work in obtaining the grant.

Meanwhile, Chilmark selectmen voted this week to appeal the U.S. Coast Guard’s denial of a $1.7 million town insurance claim for the Menemsha boathouse fire. Selectmen questioned the Coast Guard’s reasons for the denial and cited possible inaccuracies in the investigative report following the fire.

Released last February, the report found the cause of the fire was undetermined and pointed to the area connecting the town dock and Coast Guard dock as the origin of the fire. But in denying the town’s insurance claim last month, the Coast Guard said the fire in July 2010 had started on town property.

The selectmen learned two weeks ago that the Coast Guard had denied the claim.

In a letter from Legal Service Command in Norfolk, Va., Coast Guard attorney Susan Steiner informed the town the claim could not be paid because “the information indicates that the fire began on the drive-on pier, quickly spreading to a nearby structure, access piers and moored boats.”

About 40 fishermen and private boat owners who also filed claims with the Coast Guard received a similar letter.

Mr. Fenner, who owns a business in Menemsha and was at the scene the day of the fire, said the testimony he later gave investigators did not appear in the final report. At their meeting Tuesday the selectmen questioned the validity of the report.

“They were saying that they didn’t have any contrary information . . . ” Mr. Fenner said. “I’m calling into question what they put into the record as my response.”

The selectmen may appeal either directly to the Coast Guard or through U.S. District Court. They will meet with town counsel Ronald H. Rappaport on April 17 to discuss the matter.

Town administrator Tim Carroll suggested police chief Brian Cioffi also be involved in the discussion.