Preliminary work is underway on New York’s largest observation wheel, which will sit at the heart of a US$790m (€734m, £527m) transformation of Staten Island.

The wheel, which will for a time be the largest in the world assuming it is completed before the upcoming Dubai Eye, is being developed by engineering firm Starneth. Perkins Eastman/EEK Architects are operating as designers for the entire development.

After it opens in Q2 of 2017, the 630ft (192m) high wheel would be the tallest in the US, dethroning the 550ft (168m) High Roller in Las Vegas, Nevada, and is expected to host 3.5 million riders on an annual basis. Featuring 36 capsules able to accommodate 30,000 visitors a day, the climate-controlled cabins will include permanent bar cars, and a 20-seat dining car.

The transformation of Staten Island, which briefly welcomes millions of tourists en-route to other locations using a free ferry service, will also incorporate Empire Outlets – New York’s first ever retail outlet complex. Built by BFC Partners, the retail development will also include restaurants and a 200-bedroom hotel.

The wider complex will also offer a 4D ride, beer garden and amphitheatre. A nightly harbour light show will be an additional attraction, featuring US$7m (€6.5m, £4.6m) worth of LEDs.