Plans for a second seafront artists' quarter between Brighton's two piers are likely to be approved by councillors next week.
The original quarter on the Lower Promenade was established a decade ago and has been a big success.
Now the city council is looking at providing the new quarter in arches immediately to the east of the Palace Pier.
Work is under way on rebuilding the Aquarium Colonnade, which contains the arches, at a cost of more than £400,000.
The policy committee will be asked on Wednesday to spend a further £250,000 on a regeneration scheme for Madeira Drive.
Assistant leisure director David Fleming said the idea was to extend the successful seafront development initiative, which had transformed the seafront between the two piers.
The money will be spent on creating the artists' quarter and also to design and install a children's play area at Peter Pan's Playground.
Mr Fleming said: "This will be the first stage in transforming Peter Pan's Playground from a commercial leisure and amusement area to a more family-orientated activity-based space."
The work will be carried out in stages and will include safety measures to stop boy racers speeding along Madeira Drive.
Another idea being considered is the creation of a special area for sailing and water sports.
Improvements in Madeira Drive will be linked with the new leisure scheme being considered for Black Rock at the eastern end.
Madeira Drive will continue to be the home for dozens of major events each year ranging from the veteran car run in November to the London- to-Brighton bike ride in June.
As with the development between the piers, the city council is hoping for some private investment to add to its own funds.
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