Council chiefs have secured £600,000 of funding to regenerate Seaton Carew.
Hartlepool Borough Council, which is leading the regeneration efforts, is one of 33 areas in England that is to receive a grant through the Coastal Communities Fund.
Hartlepool’s successful application was announced by the Government’s Communities Secretary Sajid Javid.
The council says the funding will form part of a £1.3m package of improvements for Seaton Carew which includes the creation of a new outdoor leisure park with water jets, play equipment, beach huts, picnic tables and new landscaping.
The authority is the other main funding provider, with support from the private sector.
Work is expected to be completed by March of next year.
Councillor Kevin Cranney, chair of the council’s Regeneration Services Committee, said: “This is tremendous news and will enable the council to accelerate the regeneration of Seaton Carew.
“The council set out its vision to revitalise Seaton Carew two years ago through the Seaton Carew Masterplan and it’s really pleasing to see developments now coming to fruition.
“Over the next 12 months we will see significant improvements at Seaton Carew which will benefit residents of the town and strengthen the resort as a visitor destination.”
A new coastal sculpture reflecting the town’s strong maritime history will be located on the promenade near Seaton Reach.
It follows submissions from nine artists of local, regional and national repute, of which the winning sculpture was chosen by a public vote.
The Grade II Listed Bus Station and Clock Tower will also be rejuvenated, complete with new footpaths and a gateway feature.
A further sculpture in tribute to Hollywood film director Ridley Scott will be sited at the Transport Interchange in the Church Street area.
Called Boy and a Bicycle after an early short film Scott made in Hartlepool, it is designed to link key areas of the town via public art.
Although born in South Shields, Scott studied at the art college in Hartlepool from 1954 to 1958, before going on to direct such iconic films as Alien and Blade Runner.
Other recent investment at Seaton Carew include improvements to the sea defences and promenade.
The council has also received bids from companies that are interested in providing a crazy golf course on the promenade.
It had to redraw its plans after the Government rejected a compulsory purchase order for the Longscar Centre last year.