Skegness and Sutton on Sea will receive initial funding of £1,250,000 from the government for regeneration plans.
It will go towards the part-pedestrianisation of Tower Esplanade in Skegness and a new colonnade development in Sutton on Sea as the existing, unsafe 1950s concrete structure will be demolished.
Sutton on Sea is part of the Mablethorpe bid and the new development will soon be submitted for detailed planning consent.
It includes a new landmark multi-use building housing a cafe, gallery and exhibition space and viewing decks.
It will also offer sheltered trading areas, craft and performance spaces, as well as 15 new modern beach huts and six luxury holiday lodges.
Skegness, Mabelthorpe and Sutton on Sea joined forces for their bid of more than £50 million and a group of local stakeholders, businesses and community groups formed a board called the Connected Coast.
Sarah Louise Fairburn, Chair of the Connected Coast, said: “This is amazing news, we are very confident that after lengthy consultation with local people, businesses and residents in both towns that we can deliver an ongoing vision for the two towns.
“This first tranche of funding is intended to spur on the two projects which by their very nature will improve the offering that both towns have the potential to capitalise on.”
These are two of over 100 towns in England which will share £80 million to boost regeneration from the government’s Town Deal Accelerated Funding, including Lincoln, Boston, Grimsby and Scunthorpe. It is the first part of £3.6 billion to level up towns across England.
Meanwhile, East Lindsey District Council’s Executive Board have approved a Local Development Order for the local coast.
It will allow holiday parks and seasonal accommodation to open from March 1 to January 5 for holiday occupancy, extending the season and assisting local businesses in their recovery from economic impact of COVID-19.