Soon the public will be able to enjoy a coffee and a meal while overlooking one of Newcastle's most spectacular coastal views at Shepherds Hill Cottage.
The state government has announced $465,000 to fit out the historic building with a kitchen, storage and cafe facilities.
The heritage-listed cottage, which sits at the top of King Edward Park Lookout, was built in the 1890s.
It was originally used as a mess hall for colonial military officers, and more recently housed the Marine Rescue NSW Newcastle base until a storm in 2015 caused significant damage.
Newcastle MP Tim Crakanthorp said the new commercial kitchen, cold storage, amenities and cafe facilities would allow the community to use the cottage for education, historical and heritage events as well as weddings, exhibitions and dining.
"Shepherds Hill Cottage has important Newcastle history within its walls," Mr Crakanthorp said.
"This funding will unlock this beautiful site's potential and be of great benefit to Novocastrians and tourists alike."
Newcastle lord mayor Nuatali Nelmes said the council had already invested more than $1 million towards cottage's restoration
"The Shepherds Hill site is a focal point of our coastline thanks to its breathtaking location, offering spectacular panoramic views of the Pacific Ocean and the Newcastle coastline," Cr Nelmes said.
"This NSW government grant will help provide the infrastructure needed to facilitate the reopening and reactivation of this site for the community."
It's understood council will seek expressions of interest for operators once the work has been completed.
The state government grant was provided by the Department of Planning, Housing and Infrastructure from the Crown Reserves Improvement Fund.
