Wyre Council has announced plans to demolish buildings on a 2.44-acre site in Fleetwood to build a new depot for council services.
The council said buildings on the existing Copse Road site are set to be demolished early next year and will be replaced with a £1.5m purpose-built base for waste services, street cleansing, grounds maintenance, building maintenance and transport services.
The project is subject to planning permission and if approved it is expected to be completed by the end of 2012.
Cllr Peter Gibson, leader of Wyre Council, said: "There is no doubt that a new council depot is needed, especially with a new waste collection contract starting in April and street cleansing being brought in house.
"Building on our existing site is the best option as it means we do not have buy new land or borrow money to purchase it. This way we get a return on our investment and it becomes a genuine council asset.
"This represents another major council investment in Fleetwood, along with the creation of several new construction jobs. A single base will also be more cost effective to run. It will bring together various teams on to one site providing for greater efficiencies in working arrangements and ensuring we provide the best front line services to our communities."
The council said the buildings on Copse Road are in a poor state of repair and several have remained closed for some time for health and safety reasons.
Council staff currently based in the building will be temporarily relocated later this month and spread out across existing council assets. The transport team, which works from a garage to the rear of the site, will remain.