Mayor Bloomberg announced renewed plans Wednesday to redevelop a stretch of Staten Island's waterfront known as the Homeport. NY1's Amanda Farinacci filed the following report.

It's take two on a plan to redevelop the Staten Island Homeport, a 36-acre site abandoned by the United States Navy in the 1990s.

On Wednesday, Mayor Michael Bloomberg announced a new deal with a New Jersey developer to revitalize the sprawling waterfront.

"Ironstate Development will invest more than $150 million to construct about 800 units of rental housing at the Homeport site along with 30,000 square feet of ground level retail space," Bloomberg said.

The old plan, announced in 2004, called for just 350 units of housing, and was a tough sell to developers because they thought it would be hard to make money building so little housing. Plans were also in the works for a restaurant, sports complex and stores, along with an esplanade, open space and road reconstruction.

The city says the plan never progressed because of the sinking economy. But now, after months of tight-lipped negotiations, Ironstate has signed on to build two residential buildings, no more than six stories high. Rents will range between $1,200 and $1,900 a month, in the hopes of creating Staten Island's first real rental community.

"We know that there are young people living doubled up in Manhattan, in Brooklyn, even in Astoria, who can no longer rent there. This will be an opportunity for them," said State Senator Diane Savino.

Retail shops and restaurants are also planned, and the city has pledged $33 million for the first phase of the project which include infrastructure improvements and a waterfront esplanade.

Borough President James Molinaro, who brokered much of the deal, believes the project will attract other developers to the area.

"This is the first step, they took a chance, they see now, it's being developed, hey, it's an opportunity for me," Molinaro said.

Developer David Barry says he's confident the project will be successful despite the current economic climate.

"When I see an opportunity like Homeport, I think we can do something really creative and really great there, and Staten Island is going to be proud of, and the economy is going to come back, I'm not worried about that," Barry said.

Construction on the project is set to begin in 2011, with a goal of completion in 2013.