Trump will invest more than $24 million to build the facility, which will include the restaurant for 400 and a catering areas that could accommodate up to 1,250 guests.
No state funding is involved. Trump gets a 40-year lease.
The agreement also settles several lawsuits between Trump and the state dating back to 2006.
A key to the deal centers on a basement Trump had wanted to build. The state balked because it is in a flood zone. The agreement calls for the basement to be used only for storage.
The facility will be built at the site of the former Boardwalk Restaurant at the Central Mall.
Opponents say they're worried about the scale of the facility, but a spokesman says it will be along the lines of what's already in the neighborhood.
(The Associated Press contributed to this article.)
WAKE UP WITH EYEWITNESS NEWS! Click here to download the WABC Eyewitness News Alarm Clock app from iTunes. or search WABC or 7online in the app store.
Get Eyewitness News Delivered