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.
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