West Hill Café, in Castle Hill Road, Hastings, offers some of the town’s best views but has been shut all summer and is surrounded by overgrown weeds.
Hastings Borough Council, which owns the property, has been in a legal battle with former tenants and has just taken back control of the building.
Hope began to grow last week as councillor Andy Batsford said that £3 million of government money was earmarked for its redevelopment.
“The town deal has awarded £3 million to reimagine the footprint as a cafe/bistro and important interpretation centre for Hastings Castle. Exciting times ahead,” he said.
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However when The Argus asked the borough council to see plans for the café and when it would open, a spokeswoman said she had “no idea” where the news had come from and that no decision had yet been made.
The borough council said meetings are planned for the coming weeks, but that nothing had been confirmed.
The spokeswoman also said: “We are pleased that we have been able to take back possession of the West Hill Café. We are now looking at how this site could be included within the Town Deal Hastings Castle project.”