Sources said that under a tentative agreement, the city would buy six of the 10.5 acres the developer owns. Sitt would hang on to property on Stillwell and Surf Aves. It wasn't clear how much the city would pay for the land. Sitt previously rejected an offer of $105 million.
Thor spokesman Stefan Friedman said the company is "hopeful that these negotiations will result in a timely resolution and a brighter day for Coney."
The city's plan calls for a sparkling new 12-acre amusement park, part of a 27-acre district that would also include indoor entertainment like skating rinks and bowling alleys. There are also plans for four hotels.
City Councilman Domenic Recchia (D-Brooklyn), whose district includes Coney Island, said the new attractions would keep visitors entertained all year round.
"It gets awful cold and awful lonely in Coney Island," he said. "Tourists will come from all over the world to visit, but not only three months of the year."