Operation "Save the Cheyenne Diner" is underway.

Led by Michael Perlman, the man who helped rescue the historic Moondance Diner from the scrap heap last year, preservationists hope to find a new location in the city for the iconic diner at Ninth Ave. and 33rd St.

The asking price for the railroad car-style diner is $7,900, not including rigging and lot acquisition costs.

"We've already been talking to a developer in Coney Island," Perlman said.

If the preservationists can't find a suitable spot for the Cheyenne in New York, Perlman said, they will review offers from Ohio and Indiana.

"Diners are among the ultimate public institutions, which harbor countless memories and bridge the generations," Perlman said. "They are becoming an endangered species."

A neighborhood institution decorated with Native American artifacts, the Cheyenne served its last blue plate special on Sunday after losing its lease to a bigger eatery around the corner - the Skylight Diner.

Skylight owner George Papas wants to build a nine-story apartment building on the narrow site, most likely with a restaurant on the ground floor. He's willing to wait until after the Cheyenne is moved, Perlman said. Originally published online here: http://www.nydailynews.com/ny_local/2008/04/10/2008-04-10_cheyenne_diner_may_rise_from_the_dead-1.html