A New Jersey state agency has cleared the way to begin the long-anticipated bidding process for Bader Field, the 142-acre parcel of undeveloped land that sits a half-mile from the Boardwalk.

Bader Field is an airport owned by the city of Atlantic City that was closed in 2006. The 142 acre site is surrounded on three sides by water and is considered one of the most valuable pieces of open land on the East Coast. Bader Field is for sale. A process has been set up to facilitate competitive bidding for the site. The property is expected to fetch about $1 billion for the city.

The coveted 6.2-million-square-foot Bader Field has attracted the attention of several casino companies and developers, including gambling titan Steve Wynn, who has expressed interest in developing a casino resort there. Penn National Gaming Inc., of Wyomissing, Pa., made a failed $800 million offer earlier this year for the land. Other potential uses for the parcel include hotels or condominiums.

City officials said the land would be leased, not sold, to one or more developers, with a “substantial” percentage of the lease payment to be handed over to the city upfront. The city intends to select a developer — or more than one — by the end of March 2009. Interested developers have 90 days to submit a proposal for the site, a 30-day extension from what was originally projected. The deadline for offers is 5 p.m. Jan. 14.