Redevelopment of a former tobacco warehouse at Stanley Dock in north Liverpool will receive funding as part of a project granted £25m from the Government's Regional Growth Fund.
On Monday, the Government announced 34 projects from businesses and local partnerships in the North West were successful in the second round of bids for funding from its £1.4bn three-year fund.
The North Liverpool City Fringe Employment and Investment programme, put together by the city's economic development company, Liverpool Vision, and Liverpool City Council, in partnership with The Eldonians Group and Stanley Dock Properties, was granted investment for an area between the city centre and Peel's Liverpool and Wirral Waters enterprise zone.
Vision said the programme includes three themes to encourage further private investment in the area such as connections, including high speed broadband; site acquisitions and development incentives and business support.
The programme also comprises two projects for immediate delivery. This includes a mixed use redevelopment of a former tobacco warehouse at Stanley Dock to transform the site into a scheme with apartments, bars, shops and a hotel all being considered.
The other project is a low carbon combined heat and energy plant and work space for The Eldonians Group.
Pat Power, development director behind the Stanley Dock project, said: "For a long time the tobacco warehouse has been a monument to the lack of investment in the area, but this funding will now be the trigger for major redevelopment in the North Docks in the way in which Albert Dock was 20 years ago for the central docks area."
Lawrence Santangeli, chief executive of the Eldonian Group, added: "Eldonian Group Ltd has had aspirations to develop a project which could help combat fuel poverty across the city. Today's announcement will allow us to attract further investment from major energy companies to help deliver on these wider aspirations.
"This is further proof that the hard work in pulling together a delivery for the Strategic Regeneration Framework for North Liverpool and South Sefton was right on every level."
Ian McCarthy, director of programmes for Liverpool Vision, said: "This funding provides a tremendous boost to the economic prospects of North Liverpool and Sefton. Partners have presented a compelling case to Government to help kick start major projects and remove barriers to investment in this underperforming area, which is so close to the city centre. I'm confident this will now stimulate further private sector investment, and employment opportunities."