New York City Mayor Michael Bloomberg announced a partnership Monday with New York University and the Polytechnic Institute of New York to construct a 460,000 square foot applied science research institute in downtown Brooklyn. 

Known as the Center for Urban Science and Progress, the campus will be the latest addition to Bloomberg’s Applied Sciences NYC Initiative, which seeks to infuse New York’s economy with collaborative research between universities and businesses to spur technological growth, according to a press release. 

The campus will be built on 370 Jay Street over the next five years, transforming the address into “a cutting-edge center for research and science that will give another huge boost to our city’s economy,” Bloomberg said at a Monday press conference. 

“Just like the Cornell-Technion campus, [CUSP] will spin out new startups, create new jobs and drive innovation for years to come,” Bloomberg said. 

The new institute is expected to pump more than $5.5 billion into the local economy and create 7,700 jobs in 30 years, according to Bloomberg. 

The Center will open its doors to its first class of students in Sept. 2013, according to a statement from the Bloomberg administration. Before the institute is completed in 2017, CUSP will lease space in the MetroTech Center in downtown Brooklyn to house its classes, according to the press release. Classes will begin in the fall of 2013, and the completed institute will eventually employ 50 full-time faculty and researchers and over 500 master’s and Ph.D. students.

NYU will finance the $60 million relocation of the Metropolitan Transportation Authority and the New York Police Department — which currently occupy the site — while the city has promised up to $15 million in public funds and tax breaks to offset costs.

Rather than demolish the current MTA center in Brooklyn, NYU will remodel the building through a “high-tech, high-performance facade system using recycled materials,” according to a university press release, which added that the remodeling will promote sustainability. It will also use low-energy heating and cooling systems to achieve LEED Gold certification. 

“This is a proud day for NYU,” NYU President John Sexton said at the press conference. “Today, all of us who care about this city and its role in the future know that we have to build into the DNA of this city –– the notion of it as an idea capital. Today, the 21st century is here. And it’s here in the place … that’s the center of the world.”

The deal between NYU and city officials comes just a few months after Bloomberg announced the construction of a tech campus on Roosevelt Island with Cornell and the Technion – Israel Institute of Technology. In December, Bloomberg announced that after a yearlong competition, Cornell, in partnership with The Technion, beat out 17 other institutions to win the right to build a $2 billion tech campus on Roosevelt Island.

“We are excited to learn that NYU and its partners will be joining the effort to realize Mayor Bloomberg’s vision to place New York City at the vanguard of innovation,” President David Skorton said in a press release Monday. 

According to Prof. Daniel Huttenlocher, dean of CornellNYC Tech, it became apparent during Cornell’s tech campus bid that the city would be selecting more than one school to contribute to Bloomberg’s applied sciences initiative.

“New York City has this amazing economy and amazing potential,” Huttenlocher said. “I think that the city could support a number of schools, looking at various aspects of technology and technology commercialization. The more the city becomes a magnet for attracting the best students and the best faculty across a number of schools, the better.”

During the press conference, Sexton announced the University’s selection for the new institute’s director, Steven E. Koonin, the former Undersecretary of Energy for Science and Provost at the California Institute of Technology.

The research institute will attract talent from other universities such as Carnegie Mellon University, the City University of New York and the University of Toronto, according to a NYU press release. 

Bloomberg added that the city is still in negotiations with other academic institutions, including Columbia and Carnegie Mellon, regarding his applied sciences initiative. 

“We’re hopeful that we’ll be able to find ways for them to realize their proposals, each of which envisions building campuses in other locations around the city,” Bloomberg said. “We want to build more of these exciting schools.”

Akane Otani contributed reporting to this article.