New plans to build homes on a grassed area near Whitley Bay Playhouse have been lodged with the council.
The scheme, by Places for People and McCarthy & Stone, involves constructing 65 extra care apartments for the elderly.
If approved, the development would be a three-storey building containing a mixture of one and two bedroom flats.
The block would also include a communal lounge area, a restaurant and a bistro which will provide each resident with at least one meal a day.
A planning statement for the scheme said it would help meet the need for more housing for the area's older people.
It said: "The proposed redevelopment of the site for Retirement Living Plus housing for older people provides a significant opportunity to contribute towards meeting the current and projected requirements for special needs accommodation for older people in Whitley Bay and the UK generally. "
The document also claimed the development could bring £4.5m into the local economy with around 60 local companies employed during construction.
The land used to be home to Croquet Park and Marine Park first schools which were flattened in 2006, and the developer says the new buildings would improve the look of the area.
"The redevelopment of the site is an opportunity to improve the domestic street scene along both Coquet Avenue and Marine Gardens and recognise the importance of the location as a transitional site into the Spanish City and town centre," it said.
Two years ago, Places for People put forward proposals to build 64 properties on the site - 44 apartments, 16 houses and four flats. That application was turned down.
A number of people were against the project and raised concerns about a potential increase in traffic problems and pedestrian safety issues.
Some said the scheme was an "over development" for the area.
North Tyneside Council is expected to decide on the latest application by early May.
