The City Council has approved the Bloomberg Administration’s plans to redevelop Coney Island, handing the mayor a key victory and paving the way for an overhaul of the iconic seaside neighborhood.

The council’s 44-2 vote on July 29 came just as the city finished hammering out the details of deal to acquire prime Coney Island real estate from the developer Joe Sitt. The city needs Sitt’s land to move forward with its redevelopment plan.

The city plan would create an expanded 27-acre amusement district between the Boardwalk and Surf Avenue, make room for hotels, public open space, and 4,500 new apartments in the area.

Nearly ten acres would be preserved for traditional Coney Island staples such as freak shows, arcade games, and amusement rides.

“By approving our administration’s plan to revitalize Coney Island, the Council has helped us breathe new life into a city treasure that’s been in decline for decades,” Bloomberg said after the vote. “Now we move forward with a plan that will return Coney Island to its former glory, ensure its future as a year-round destination for visitors ,and create a more livable, vibrant community for its residents.”

The mayor said the redevelopment of Coney Island would create 25,000 construction jobs and 6,000 new permanent jobs. He said a redeveloped Coney Island would “generate an economic impact” of $14 billion over 30 years.

Ceding to pressure from elected officials and community groups, the city agreed to set 35 percent of the new apartments at below market rates for moderate and low-income residents, up from an earlier plan calling for 20 percent.

Bloomberg said he was “optimistic” the city would close its deal to buy the necessary property from Thor Equities, Sitt’s development company, to proceed with the redevelopment plan. (The city is also waiting on state approval to create new parkland space.)

Sitt owns roughly 10 acres at the heart of Coney Island, a property he once announced he was eager to turn into a “Las Vegas-style” year-round resort. The city has battled the developer over competing visions for the area ever since.

Reports indicate under the current deal being negotiated the city would buy a majority of Sitt’s property.

Bloomberg said the affordable housing and jobs created by the city plan would revitalize the Coney Island community. “We’ve taken a big step forward for Coney Island, and for the future of our entire city,” Bloomberg said.

The revised plan also drew support from other elected officials, including Council Member Domenic Recchia, whose district includes Coney Island, but it drew sharp criticism in certain circles.

The community organization Save Coney Island called the vote “a sad day” for Coney Island.

Councilman Tony Avella - who along with Councilman Charles Barron cast the only no votes in the Council - said Coney Island’s charm will be overrun by large-scale development.

“This plan, despite its good points, is going to destroy the very historic nature and character of Coney Island,” Avella told the Star.

Avella, who is running for mayor, said the rezoned neighborhood would attract hotels to Surf Avenue that would block visitors’ views of main Coney Island attractions like the Wonder Wheel. He said the plan would also reduce Coney Island’s core amusement district, something he opposes.

Avella said the Council voted overwhelmingly in favor of the plan out of loyalty to Council Speaker Christine Quinn, who has a close relationship with the mayor.

“It’s the mayor’s plan and the Council, because of the speaker, is not going to go against the mayor,” said Avella.