The site is one of Morecambe's biggest eyesores and has become an iconic symbol of its previous decline.
But it looks likely to be given a major facelift in a scheme that will "support the Midland Hotel and sustain the regeneration of the town".
Lancaster City Council is expected to agree a project to completely clear the derelict former Harbour Band Arena, next to the Midland, to make way for public open space.
And it will be completed well in advance of plans by Midland owners Urban Splash to redevelop the wider central promenade area.
The council Cabinet will be asked to accept North West Development Agency funding of around £225,000 to clear the site.
It is expected that should this be agreed, clearance could take three months.
A report by Heather McManus, corporate director of regeneration for Lancaster City Council, recommends Cabinet authorise use of the funds.
Derelict
"The site is presently in a parlous, derelict and eyesore condition," said Mrs McManus.
"It detracts considerably from the setting of the Midland Hotel, impairs people's experience of the hotel and enjoyment of the Stone Jetty and certainly does not contribute positively to the commercial viability of the new hotel business.
"It presents a poor image of the town to people and is undoubtedly prejudicial to the sustained and concerted efforts by the council and others to regenerate Morecambe."
The report recognises that Urban Splash has plans to eventually transform the site into a new 'Seaside Square' – a high quality focal point for their proposals to regenerate the central promenade area.
Action
However, she says the timing of this is "uncertain" because Urban Splash have not yet received planning permission, so interim action should be taken now.
The project to clear the Harbour Band Arena will include:
* Demolishing all buildings (other than the electricity sub-
stations) – to include the infamous 'Jugs of Tea for £1.50' hut
* Getting rid of remaining services in the buildings
* Grubbing-up the entire area and crushing all material for fill
* Importing topsoil and turfing the area over
* Maintenance of the area (i.e. grass cutting)
* Re-rendering the existing wave reflection wall to complement the material used on the Midland Hotel
* High quality seating along this wall
* A new dwarf wall between the promenade that provides access to the Stone Jetty and the beach
* High-quality lighting.
The decision will be made when the city council's Cabinet meets next Tuesday, October 7.