Full speed ahead on the waterfront

At Gloucester Harbor, they've broken ground for a cruise ship terminal. In Salem, a commuter ferry will set sail to Boston every day, beginning in the spring. In Lynn, there's talk of new, oceanfront housing behind the Lynnway.

Up and down the North Shore, millions of dollars in private and public money are being funneled into long-dormant patches of harborfront -- giving a much-needed boost to local economies, say public officials and investors.

''It's a little bit of 'If you build it, they will come,' " said Frank Kinzie, who owns the Beverly Port Marina at Beverly Harbor. Last week, Kinzie announced plans for a $10 million, three-building retail-residential complex at his marina, which would include 16 condominiums and two restaurants. Kinzie also plans to double the number of slips at his marina to 400. The project is the first harborfront proposal for Beverly since 1989. Kinzie estimated the project would generate $500,000 a year in taxes.

''I think it will help us greatly with improvements to our infrastructure that need to be made," said Mayor William Scanlon Jr. If the project is built, Scanlon said, it could help subsidize future building projects planned for the high school, former Memorial Middle School, and the police station. The project still needs city, state, and federal approval.

Beverly also plans to upgrade its harborfront marina by adding handicapped access ramps and will build a new harbormaster's facility next to the marina. Richard Armstrong, executive secretary to the state's Seaport Advisory Council, said the project -- estimated at $3 million -- is in line for funding from his office.

Beverly is not alone in applying for council funding: Salem, Gloucester, Winthrop, and Lynn are also applying for millions from the state.

In Salem Harbor, the council has already funded $450,000 for the construction of a temporary pier and dock for the Boston ferry service. The project is part of a $12 million council and city plan to bring medium-sized cruise ships, water taxis, and other excursion boats to a new pier. Armstrong said the construction of the permanent pier will begin in 2007 and take three years to complete. ''The ferry service to and from Boston is a critical element of this project," said Armstrong.

In Gloucester, investor Frank Elliott has broken ground on a cruise ship terminal on a vacant strip of harborfront. The two-story, 16,000-square-foot terminal could cost up to $3 million and will open in the fall, said Greg Ketchen of the Gloucester Harbor Plan Office. The state is also paying $90,000 to clear the harbor of large rocks that could interfere with the cruise ships.

Ketchen said that two cruise lines, Holland America and Seabourn Cruises, have committed to six port calls at the new terminal next October. In addition, the terminal is hoping to establish a seasonal ferry from Cape Ann to Cape Cod, and an international ferry to Nova Scotia. Ketchen also would not rule out using the terminal as a stop on the planned Salem-Boston ferry.

Currently, no ferry service runs from Massachusetts to Nova Scotia. Citing a previous report on international ferries, Ketchen believes that 50,000 people would take a ferry from Gloucester to Nova Scotia every year if the route were established.

Ketchen knows that not all these projects may come to fruition, but nonetheless, he sees the commitment from the cruise lines as a major step toward generating new revenue for the city. ''Bringing in cruise ships or ferries brings in an influx of money, and it positively affects the downtown merchants," he said.

Julia Bovey, a spokeswoman for the Conversation Law Foundation, cautioned that state and federal regulators should pay extra attention oceanfront development, and ensure that storm runoff water from new projects does not pollute the harbor. Increased boat traffic along the ocean, could also cause further pollution, she said.

''If you can address those concerns, then redeveloping the waterfront can be a terrific use of a resource and can create vibrant walkable communities," Bovey said.

Larry Dressler, executive director of Niche Cruise Marketing Alliance of Seattle, said old, historical ports like Gloucester and Salem are natural destinations for the growing small cruise line industry. ''People are looking to discover a region of the country and want to get to know an area in depth," he said. Dressler said tourists who leave the ships spend an average of $100 to $176 per day ashore.

With the Holland America ship holding more than 1,000 passengers and other ships carrying at least 200 people, that could mean a stronger fall for Cape Ann businesses, said Mike Costello, executive director of the Cape Ann Chamber of Commerce. ''It could have a huge impact," said Costello.

Winthrop also may launch a commuter ferry to Boston when its $4 million multiuse public landing on Shirley Street is completed next year, said Barbara McNeil, Winthrop's grants procurement administrator. She said the town plans to apply for $3.2 million in state grants and will borrow the rest to complete the new public landing.

''We'd like to position ourselves as a day-trip tourist attraction," said McNeil. She added that lobster boats, charters, and excursion vessels could use the landing. ''Some people have even talked about kayaking."

In Lynn, the city is using a $300,000 council grant to design a new public landing on Blossom Street, behind the Lynnway. Hal McGauhey, Lynn's development director, said the city plans to hire a firm to conduct a harborfront master plan.

If the plan is implemented, said McGauhey, it could radically change the look of the back of the Lynnway, which is now covered with electric power lines.

McGauhey said the key to initiating any major residential development along the back of the harbor lies in the relocation of the power cable. For the last two years, the city and National Grid -- the owner of the power lines -- have met to discuss moving the cables from the site, said McGauhey. McGauhey believes the lines will be moved eventually.

''I think tremendous development will take place down there. We're talking about waterfront property, access to Boston, access to the commuter rail, access to Logan Airport. The potential is incredible," said McGauhey, who estimated that investors would commit more than $100 million if the lines were moved.

In addition to National Grid, other owners of major parcels behind the Lynnway include Boston developer Joe O'Donnell, Lynn's Pat McGrath, Wal-Mart, and the Miles Group.

Steve Rosenberg may be reached at srosenberg@globe.com.