Kevin O'Toole, the new chairman of the Port Authority of New York and New Jersey

BAYONNE, NJ—The Port Authority of New York and New Jersey has signed a lease deal for property at the Port Jersey-Port Authority Marine Terminal here with the City of Bayonne that will lead to a new commuter ferry service to New York City.

At its monthly meeting last week, the Port Authority Board of Commissioners approved a 10-year $2.6 million lease with the city. The Board also approved a 10-year extension option for the property, subject to the Port Authority's consent.

The lease will allow the City of Bayonne to enter into an operating agreement with a passenger ferry operator in support of ferry service between Bayonne and New York City. The service is expected to serve The Peninsula at Bayonne Harbor, a growing residential development located near the planned ferry landing. The city will operate and maintain the ferry landing.

"Expanding options for the growing population of commuters along the Hudson River waterfront is a critical part of this agency's commitment to keep the region moving," said Port Authority Chairman Kevin O'Toole. "Today's action will allow us to take an underutilized piece of port property and partner with the City of Bayonne to support much needed trans-Hudson service connecting people to their jobs, families and homes."

"We are very excited about the return of ferry service to Bayonne," said Bayonne Mayor Jimmy Davis. "The ferry will provide a convenient commute between Bayonne and New York City, and will make Bayonne a more attractive location for commuters. The return of ferry service is yet another sign that Bayonne is making great progress."

The Peninsula at Bayonne Harbor residential development, which has 750 residential units constructed, has another 1,200 units under construction and an additional 2,500 units planned. In total, the City of Bayonne projects upwards of 4,000 plus residential units will be completed within the next three years.