KEARNY -- Developers broke ground at a new industrial site yesterday morning they say is part of a larger project to create thousands of jobs over the next decade in the West Hudson town.

The latest project, dubbed Building 197, is part of the $250 million development plans at Kearny Point and is located at the former site of the Federal Shipbuilding and Dry Dock Co.

Michael Meyer, director of development for Hugo Neu -- which owns the property -- said Building 197 is the first new construction at Kearny Point. It is expected to be a 200,000-square-foot "light industrial" project and will target smaller manufacturers, particularly "food-oriented" businesses.

"When we're done, over the next 10 years or so, we anticipate there will be over a billion dollars of public and private investment into this site, ultimately creating over 7,000 new jobs," Meyer said. "This site, which at one point employed over 35,000 people, really can be an economic engine for the region again."

The property is just off of Hackensack Avenue behind the Hudson County jail. The area was devastated by Hurricane Sandy in 2012 when the Hackensack River surged and flooded the property. Kearny Mayor Al Santos, who was joined by half of the town's council, said the development is transforming the area.

In 2015, Building 78 opened in Kearny Point as a small business hub and co-working space. That building is almost fully rented to about 100 small businesses with 250 employees.

Assemblyman Benjie Wimberly (D-Paterson) called working spaces like Kearny Point a "game changer" as startups look to collaborate with other businesses.

"This is the future of New Jersey," he said.

Hudson County Executive Tom DeGise, who also attended the 10 a.m. ceremony with about two dozen people, touted development in the county, specifically West Hudson and the area around the Harrison PATH station.

Building 197 is expected to be complete by year's end.

Caitlin Mota may be reached at cmota@jjournal.com. Follow her on Twitter @caitlin_mota.