Architectural rendering of Pier 55 project.

A controversial plan to build a park that would extend on a platform into the Hudson River off Manhattan's West Side is back on again after mogul Barry Diller had said in September that he would pull the plug on it after years of litigation.

Diller, the chairman of IAC/InterActive Corp., said at the time that he chose to abandon the project called Pier 55 after costs ballooned to $250 million from $35 million while the 2.75-acre project went through rounds of litigation.

Diller's decision to go forward again apparently came after Gov. Andrew Cuomo said he met with the parties and convinced them to drop the litigation and work together, according to a statement released by Cuomo's office on Wednesday.

Richard Emery, a founding partner of Emery Celli Brinckerhoff & Abady and counsel for the City Club of New York, which had opposed the project, said at the time they thought the parties were close to a settlement when Diller backed out. Emery said in a joint news release yesterday that the “historic commitment by Governor Cuomo to finish the park and protect the estuary is a great victory for park users and all New Yorkers. In that spirit, we will not litigate against Pier 55 and will work with the governor to realize his visionary plan for completion of the Hudson River Park and for protection of the Hudson River.”

Diller said in the same joint statement, “The governor has informed me that the City Club litigation will not be pursued if I go forward, and that is an important factor and welcomed news.” He said his organization would need to reinstate agreements with the Hudson River Park Trust, and the state and federal agencies that issued permits, as well as receive assurances that litigation would not be reinstated to get the project back on track.

Billionaire real estate developer Douglas Durst, who helped fund the opposition, also praised the agreement in the statement.