Money from the sale of Exmouth's Elizabeth Hall to a hotel group could be used to fund other regeneration projects in the town.
Premier Inn has bought the seafront site and will demolish the hall to build a new 60-room hotel.
Councillors meeting today are due to discuss whether to put some of the money directly into developing the new leisure area in Queen's Drive and building a replacement deep water slipway at Mamhead.
Income from the sale of council-owned buildings or land is usually returned to the overall capital programme but an exception could be made in this case.
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