NEW YORK, Nov. 8 (Xinhua) -- New York City Mayor Michael Bloomberg on Thursday unveiled a 2.5-billion-dollar plan to revitalize Coney Island and turn it into the largest urban amusement park in the United States.

    "We all recognize that Coney Island just isn't what it could be," said Bloomberg. "Its amusements haven't kept pace with changing times and tastes, and for much of the year, activity in the area lags badly."

    The plan calls for rezoning the northern end of Coney Island for hotels, residential and retail space, and transforming the streetscape on the west.

    On the east, the city wants to rezone 21 acres as parkland, much of which is now privately owned. It would be designated as a giant amusement park, with a looping, high-speed roller coaster spanning the area.

    The famed cyclone and the parachute jump, as well as the wonder wheel, would stay put.

    Bloomberg predicted the proposal could cost 2.5 billion dollars in private investment in the next decade and would create 3,000 permanent jobs and 20,000 construction jobs over the next three decades.

    "It really could be spectacular," Bloomberg said after a speech outlining the plan to the Brooklyn Chamber of Commerce. "But it's fallen on hard times."

    "But rather than focus on the faded glory of Coney Island's past, or the unfulfilled potential of its future, let's look at how we can create a better future," Bloomberg said.

    The city hopes to have a formal public review of the plan by early next year.

    Coney Island is a peninsula in southernmost Brooklyn, New York City, with a beach on the Atlantic Ocean.

    The area was a major resort and site of amusement parks that reached its peak in the early 20th century. It declined in popularity after World War II and endured years of neglect.

    In recent years, the area has been trying to win back its popularity, hosting mermaid parades, film festivals and hotdog eating competitions.