Long-awaited plans to replace a beleaguered seafront arcade with a shop and homes have taken a step forward.

The multi-million-pound revamp of Herne Bay’s former Tivoli Amusements has been years in the making, with the building derelict even longer.

After Canterbury City Council admitted it needed to redesign the project due to financial constraints earlier this year, it has now submitted fresh papers for consideration.

The application for the site on Central Parade is for a four-storey building, complete with six flats and commercial space on the ground floor.

Four of the apartments will have two bedrooms, while the other two will be three bedrooms, and “100% accessible and adaptable”, official papers say.

The commercial space on the ground floor has been described as a “generous provision… which benefits from sea views”.

Planning documents state the scheme has been designed sensitively to complement the historic clock tower on the promenade opposite, and would provide “an interesting new architectural addition to the street”.

If granted, the completed scheme would meet the council’s aims of restoring the historic frontage of this section of Central Parade, while replacing the eyesore building before March 2026 would unlock a crucial government grant of almost £555,000.

This is the deadline to satisfy conditions attached to a £554,500 Brownfield Land Release Fund (BLRF) grant.

If that deadline is missed, the government cash could be lost.

Earlier this year, a fresh assessment concluded the approved project was no longer financially viable, so officers recommended redrawing the plans and splitting the work into two phases.

The council says its new phased approach “improves the overall viability of what [it] is seeking to achieve with the regeneration of this area of the town”.

The second phase, involving the Beach Street car parks to the rear of the derelict arcade, is being worked on by the authority as a 100% affordable housing scheme, but is still reliant on external funding.

The council bought the Tivoli site in 2018 for £1.1 million and secured planning permission the following year.

But the pandemic halted progress, and costs have since spiralled due to inflation, supply chain issues and design complexities.

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An earlier attempt to market the site to developers was unsuccessful, with officers concluding the land would likely sit empty or be redeveloped without affordable housing if sold privately.

Documents warn that Phase One is “marginal” in viability, with the potential to break even or make a loss.

But the council hopes the seafront location and sea views will maximise returns and justify the upfront investment.