The proposals for The Victoria Inn seek to change the use of the building to a mixed use unit with a bar on the ground floor, two holiday flats on the first floor and two residential flats on the second floor.
The plans also include the change of use of a barn and outbuilding to create three new two bedroom homes.
There have been many letters of support for the application from residents and businesses in Glasson Dock, describing the current look of the pub in Victoria Terrace as a “blot on the landscape”, and “becoming derelict”.
The building’s owners Graham Cass and Andrew Barker, who also own The Station in Caton and The Bowerham Hotel in Lancaster, said: “The actual format of this is up for further debate but at the moment a wine and cheese bar with local cask ales and deli boards and food from the smokehouse seems most popular.
“It will have hotel rooms above and two apartments in the original hotel.
“Again after much considered debate we propose to only keep two of the original cottages at the back which will allow light and sea views int Victoria Terrace and the modernisation of the barn, we will not be building any new build or doing any extensions, in fact the site will shrink in size from the original building.”
Mr Cass said that there had been seven break-ins and squatters living in the building, as well as fires on the car park, and illegal dumping of rubbish.
He added: “The building has had all copper and lead stolen, the roof is failing, and the building has dry rot.
“If nothing is done soon the building will fall into permanent disrepair.
“We personally believe it deserves restoration and we now have the locals behind us and The Victoria Facebook page is inundated with support, and we’ve support from most local councillors.
“Let’s hope the planners back this - and new life is brought to this tired old lady.”
Mr Barker and Mr Cass bought the Victoria Inn in 2015 with the intention of renovating it.
However, research into the pub led the pair to have concerns over the viability of running it as a pub - and instead they looked at turning it into housing. But villagers rallied, saying they wanted the pub to re-open, and the owners held public meetings with residents in a bid to share their concerns and work out the best way forward for the building.