After years of debate, disagreement and inaction, New York City officials and developers plan to announce on Wednesday a proposal to save Pier 40, the former cargo terminal in Manhattan that is in danger of collapsing into the Hudson River, by selling off air rights to a developer that plans to build on the other side of the West Side Highway.

The plan, which still needs to go through a public approval process, envisions raising more than $100 million by selling the air rights to allow the development of five buildings between Clarkson and Charlton Streets, on the eastern flank of the highway, that would include hundreds of apartments for low- and middle-income households.

The money raised would be used to repair the 15-acre pier, which is currently known to most New Yorkers for its public parking lot and crowded but aging athletic fields. A recent study found that the pier was falling apart, with more than half of the 3,500 steel pilings that support the structure suffering from severe deterioration.