Construction on the transformation of the long-closed Imperial Hotel at Clifton will begin next month.
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The landmark building is set to be revamped into a multi-level hospitality venue.
The venue will include a restaurant across three floors, an all-day-dining café and host a range of lifestyle workshop classes, celebrations and meetings.
Located on Grand Pacific Drive and to the south of the Seacliff Bridge, the venue will include a weather-proofed indoor-outdoor space offering views of the ocean.
The hotel was bought by Shellharbour Workers Club Limited from the WIN Corporation in 2015 after its $1.925 million bid failed to pass reserve at an auction.
Shellharbour Workers Club representatives say that "the essence of the building's history will be captured through the restoration of heritage features".
CEO of Shellharbour Workers Club Limited, Debbie Cosmos said she was excited to commence construction on what will be a landmark venue and an asset to tourism in the Illawarra.
"This is a once-in-a-lifetime opportunity to restore a historical gem of the Illawarra," Mrs Cosmos said.
"There's so much history wrapped up in this building and we cannot wait to see the building come to life again.
"This venue will be unlike any other; it promises to be an extremely unique venue.
"It's our aim to not only restore this building to its original glory but to ensure that we tell the story of Clifton within the walls of the state-of-the-art hospitality venue.
"We're focused on giving the historic tales new life."
Construction is expected to commence on September 23, with expected completion in late 2020.
The historic site had been a pub since 1884.
In late 2016, the Shellharbour club lodged a modification request for a development application approved in 2010, when WIN Corporation owned the hotel.
The plan split the community, with many welcoming the makeover of the dilapidated building.
However, some residents had also raised issues regarding noise, height, traffic and parking.