The world’s tallest observation wheel will be at the heart of a US$790m (€571m, £471m) transformation of Staten Island in New York City that aims to attract six million visitors annually. Construction on the New York Wheel will begin later this year.

The 630ft (192m) high wheel will provide unique views of the city, taking in Lower and Midtown Manhattan skylines, the Statue of Liberty, the Verrazano Bridge and New York Harbor during the ride’s 38-minute revolution.

Featuring 36 capsules, each carrying up to 40 passengers, it will be able to accommodate 30,000 visitors per day, drawing in an anticipated four million visitors per year on its own. A nightly harbour light show will be an additional attraction, featuring US$8m (€5.8m, £4.8m) worth of LED lighting.

The giant wheel’s terminal building will also house educational and digital exhibitions on New York City’s history and alternative energy.

New York Wheel LLC, the company in charge of the project, said ticket prices are estimated to be US$30 (€21.70, £17.87).

Perkins Eastman/EEK Architects are serving as the designers for the project, while Starneth – builders of the London Eye – is responsible for wheel design and manufacturing.

The construction of New York City's first-ever retail outlet complex, Empire Outlets, is the other major part of the Staten Island transformation project. Built by BFC Partners, it will include retail, a 200-unit hotel, restaurants and parking.

"Staten Island looks forward to a renaissance on its North Shore and welcoming visitors from around the world to discover its cultural and historic gems as the Wheel and Empire Outlets help transform Staten Island into an exciting world-class destination," said Staten Island Borough president James Oddo.

The development will be served by additional ferry and water taxi services.

The New York Wheel has a target opening date of Labor Day 2016 (5 September).