The square is in the shadow of Oystermouth Castle
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Mumbles is set for a facelift with a new shops and leisure complex planned for the Gower resort's main square.
A three-storey complex of fashion and food shops, restaurant, wine bar, ice cream parlour and banqueting suite could be built at the old bus station.
Swansea Council's cabinet will discuss the scheme by EP Leisure Ltd this week.
Company managing director Bryan Evans, whose plans for a nightclub on the site in the 1990s caused major opposition, said this time there was support.
He said the firm, which owns the main proportion of the site, had spent the last two years putting together a development package.
"We have spent a long time working with council officials who have given us some very positive feedback on our proposals," he said.
"We've also been briefing business and community leaders on the scheme and the response has been most encouraging."
The company said it would not disclose the identity of potential tenants.
Derelict
But Mr Evans added: "We will be offering a blend of retail and leisure that meets the stringent standards that you would expect the council to demand for such a prominent site.
"We have an opportunity to produce a viable scheme that represents effective public and private investment in Mumbles and we need to grab it."
The site, on the foreshore of the village, is currently used as car park. The old wooden bus station is derelict.
Mumbles Community Council, which led the fight against a nightclub on the site, has received a presentation from Mr Evans.
Bu chairwoman Lillian Pritchard said members had decided not to voice an opinion on the proposed development until they were presented with firm plans.
Fellow councillor Peggy Jones said: "Obviously something does have to be done with the site. It can't stay as it is."