$30m Brooklyn cruise terminal plan moves forward.

The city has signed of a long-term lease agreement allowing it to move forward on its plans to create a modern cruise terminal on the Brooklyn waterfront.

The lease agreement reached between the City's Economic Development Corporation (EDC) and the Port Authority of New York and New Jersey enables the City (PA) to take control of Piers 11 and 12 and proceed with the design and construction of the $30 million facility, which is expected to create at least 600 new jobs

Construction of the cruise terminal is part of the City's larger $200 million effort that was unveiled by the Mayor last year to renovate and expand its cruise facilities. The plan is intended to promote the fast-growing industry by building a new terminal in Brooklyn and completely overhauling the New York Cruise Terminal on Manhattan's West Side to support the growing number of passengers flowing into New York's ports.

"One of our most important economic development goals is to restore the greatness of New York City's waterfront by adding new uses that create jobs and offer residents access to the water, and nowhere is that transformation occurring faster than in Brooklyn," said Mayor Bloomberg.

"Two of the world's largest cruise companies, the Norwegian and Carnival Cruise Ship lines, have committed to New York as their exclusive Northeastern port of call through 2017. This new facility will help us take advantage of the rapidly growing cruise sector, which already accounts for thousands of jobs and more than $600 million in annual economic activity for New York City.

"Once completed, the Brooklyn facility will be a major destination for the finest ships in the world and I want to thank Governor Pataki, the Port Authority and EDC for reaching this important agreement that will help us continue the revitalization of Brooklyn's waterfront."

The initial lease term is five years with two additional five-year renewal options. The lease calls for the City to pay the Port Authority about $560,000 a year in rent, starting in September 2005. These payments will be funded through revenue generated by fees from cruise lines, concessions and other subtenants at the facility.

The design of the Brooklyn terminal is progressing rapidly; the design team has conducted all site and utility surveys and the preliminary design has been reviewed by the cruise lines and Customs officials. Construction is expected to begin in February with an anticipated opening in late 2005.

The cruise facility on Pier 12 will provide sufficient warehouse and upland area to accommodate the operational needs of the cruise lines. A passenger pick-up and drop-off area and approximately 400 parking spaces will be provided on Pier 12, while Pier 11 will offer a vehicular access road to the terminal.

Improvements at the New York Cruise Terminal in Manhattan will include all new facilities to accommodate larger ships by installing modern adjustable gangways and expanded pier aprons. This will allow passengers and supplies to be loaded and unloaded with greater efficiency.

New terminals will segregate embarking and disembarking passengers onto separate levels, allowing for more efficient use of space and reducing congestion caused by passengers arriving and departing at the same time. In addition, the new facilities will have enhanced security measures, new passenger drop-off areas and increased parking facilities. Renovations to the New York Cruise Terminal will be completed in 2009.