Plans to build a hotel close to St Andrews town centre could create 100 jobs.
Up to 200 homes and a range of offices could also be created at the former St Leonards school site on Abbey Walk.
The five-hectare site, seen as ripe for development, currently features the B-listed St Nicholas Lodge, Abbey Park House and the abandoned St Andrews Memorial Hospital.
A report by Fife Council’s head of enterprise and protective services, Keith Winter, states the land offers an “important development opportunity”.
He said a new strategic development framework would help to establish a clear vision for the site.
Mr Winter believes the creation of a hotel, potentially providing a substantial number of jobs for the town, would provide a boost in the wake of the decision to close RAF Leuchars.
“The profile and opportunities offered by these economic development objectives are brought into sharper focus by recent decisions relating to RAF Leuchars,” he said.
Mr Winter insists development of the site presents an exciting opportunity for the town and could provide a very welcome boost to the economy.
“The delivery of hotel/tourist accommodation is increasingly important as part of the mixed use designation as a result of the considerable economic challenges facing the local economy,” he continued.
“It is anticipated that a hotel development would lead to the creation of 30-100 jobs if it can be successfully delivered.”
There has, Mr Winter added, already been significant interest.
“Council officers have been contacted by a number of hotel/tourist accommodation providers, and dialogue will continue with the relevant landowner and prospective developers,” he said.
“Two areas within the overall mixed use area have been identified as potential sites for hotel/tourist accommodation. These are the frontage part of the memorial hospital site, and Abbey Park, which will be a conversion of a listed building. Initial developer interest has been received in regard to both sites.”
A public exhibition will be held to showcase the strategic development framework on Friday at St Andrews Town Hall from 10am to 8pm. The event marks the beginning of a six-week consultation process.
John Murphy is the managing director of Knightsbridge Homes, one of the parties behind the ambitious proposals for the site.
“We are pleased that the strategic development framework has been given approval for consultation and we look forward to meeting with the public and hearing their views at the start of September,” he said.
At the exhibition members of the public will be able to view the framework, and talk through the plans.
Mr Winter said that a “finalised” plan would be brought before councillors in November, at the conclusion of the public consultation exercise.
Mr Winter believes such a strategic document will help to avoid “piecemeal” development of the site which would, he warned, result in it being “unlikely to achieve its potential”.