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.
Teenager killed in rural East Devon crash
Protest as work stops on controversial Newton Abbot project
Petition launched to save Paignton ambulance station
Official challenge to Torbay solar farm project
Two people injured in suspected Plymouth stabbing
Four councillors banned from council tax debates
