Sefton Council is preparing to spend more than £3m transforming Crosby Lakeside Activity Centre.
The cash-strapped local authority hopes to put the centre on a commercial footing to earn substantial revenue.
The struggling council lost 51% of government funding between 2010 and 2020 - the equivalent of £722 from every household in the borough.
And the Lakeside Centre currently costs the authority around £250,000 each year to run.
But following the proposed 'major refurbishment, reconfiguration, and improvement of the hospitality facilities', Sefton Council said it can remove this subsidy and generate a profit; meaning there will be a £3.53m benefit to the council over a decade.
Documents on the local authority's website say the capital cost of the project and refurbishment will be £3.1m and will be funded from a direct grant by the Liverpool City Region combined authority
It also states if the centre continues to operate without a cash injection, it could soon have to close.
The council hopes developing the centre, which is close to Antony Gormley's Iron Men , will attract more visitors.
Sefton has so far invested more than £10m in the lakeside centre which first opened to the public in 2010.
Sefton made the new site highly suited to disabled people, children and families. It also features a bistro and conference facilities.
The Lakeside Lodge also offers fourteen en-suite rooms for overnight stays.
Part of a Sefton Council report reads: "The purpose of this project is to provide a sustainable future for the centre.
"The existing design of the interior of the hospitality side of the centre does not well support efficient, flexible use of the space or the provision of a compelling, quality offer to customers.
"There is a significant backlog of maintenance work required and a need to provide for planned maintenance year on year, none of which is currently funded.
"The council tends that the CLAC continues to contribute in the long term."
Sefton Council is set to push forward with the business case for the redevelopment at its cabinet meeting on Thursday.
