The city is undertaking an effort to preserve and restore the Brooklyn neighborhood's historic amusement parks. It may seek to purchase more land in the coming months to prevent developers from turning the park into luxury housing.
An earlier deal between investment company Thor Equities and real estate company that owns the Wonder Wheel Amusement Park property fell through about three months ago.
Thor Equities and the city have been dueling over how to revitalize Coney Island.
The Wonder Wheel was built in 1920 and stands 150 feet high.
The city hopes to turn the site into a year-round entertainment destination.