Hotels have been showing interest in the Frontierland site and a "fantastic idea for a leisure attraction" would also be welcomed, a leading councillor has told local businesspeople.
Councillor Tricia Heath said owners Lancaster City Council would be seeking formal "expressions of interest" in how to develop the derelict former Marine Road fairground by the end of July.
Speaking at a business breakfast event in Lancaster, Councillor Heath said there had been interest from hotels.
"We are waiting to see what else comes forward," she said.
"We think it has to be leisure-based. We don't want housing."
Councillor Heath, who is the council's cabinet member for economic recovery, also said she hoped someone would come forward with "a fantastic idea" for a leisure attraction on the site.
Lancaster City Council cabinet recently held a meeting with council officers to agree that a 'constraints report' on the Frontierland site be completed by July.
After this, the council would invite interest from potential developers on how the site should be used.
The future of the site has also been discussed by the Morecambe Vision advisory group, which also includes representatives of the Eden Project North, Morecambe BID (Business Improvement District), Morecambe Town Council, Lancashire County Council, Bay Tourism Association, Morecambe Winter Gardens, Morecambe Football Club, Lancaster and Morecambe College and other local businesses and organisations
The site has become a local eyesore since the Wild West theme park Frontierland closed in 2000.
Retail-led projects have been mooted to develop the land over the years, but have fallen through.
Councillor Heath was speaking at the Lancaster Business Improvement District (BID) Breakfast at the Royal Kings Arms in Lancaster on Friday morning, when she was part of a panel talking to local businesses about plans for the Eden Project North in Morecambe.
PHOTOS: Giant spade goes in ground at Eden Project Morecambe as August start date revealed
New drumming festival to be held in Morecambe
New four-day Lancaster Fringe Festival announced
Former Lancaster antiques centre revamp gets go-ahead
Controversial new housing plans near Lancaster given thumbs up
LISTEN: Plans revealed for 'permanent seasonal' Lancaster On Ice
Morecambe woman charged with murder following death of eight-week-old baby
Rescue after person stuck in mud in Lancaster
Hundreds expected at Eden Project Morecambe 'breaking ground ceremony'
Morecambe children's nursery announces plans to close during extreme heat
Lancaster MP responds to Sir Keir Starmer's resignation as Prime Minister
Carnforth High School praised as a "caring community" in Ofsted report
Body of man found in Lancaster park
LISTEN and PHOTOS: Armed Forces weekend will return after massive crowds enjoy biggest ever event
Morecambe MP says Sir Keir Starmer "has made right decision" as Prime Minister resigns
Limited edition artwork will raise vital funds for Lancaster community group
Green Heritage Plaque marks first home of Lancaster University
New home revealed for £20m Morecambe West End regeneration scheme
Wooden nests take flight in Lancaster and Morecambe to stop decline of endangered birds
Veterans salute as Armed Forces Day flag raised at start of celebration weekend in Morecambe
