Council bosses met this week at Port Royal to discuss the next step in its regeneration.
Sidmouth Town Council is leading the way on a scoping exercise, which will identify boundaries, ownership, the needs of existing occupants and potential future uses.
It has put in £2,000, with another £8,000 coming from East Devon District Council (EDDC), the other major landowner, along with promises of its expertise.
Town council chairman Jeff Turner said: “This is a wonderful opportunity to bring the Port Royal area up to the visual and amenity quality that the rest of Sidmouth enjoys.”
The next step will be in the autumn when the two councils will finalise the terms of reference around the work and commission expert advice.
An EDDC spokeswoman said the challenge would be to deliver a variety that is also viable in commercial and environmental terms.
It was likely that this would require a mix of market investment and public funding, said the spokeswoman.
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