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The government is going to be asked for £20 million to help create a brand new city centre.
Officers and councillors are developing a masterplan to regenerate Chatham with designs expected to be published early next year.
A business case detailing various projects is being developed by Medway Council in partnership with the government.
Empty shops in the High Street are being considered for revamp potential, new public space proposals and converting the Pentagon shopping centre, which the local authority bought earlier this year.
Other plans being explored include creating a new conference centre at the former St John's Church next to Tap n Tin in Railway Street.
Redevelopment of The Brook Theatre could see a new "creative co-working and modern flexible performance and production space".
Full details of how the schemes could develop are yet to be published.
Councillors say the funding available and work taking place will provide a huge opportunity to regenerate the town as the new Medway city centre.
But the projects will have to be assessed against government criteria to see if they will be suitable for the final business case.
A draft plan is due to be produced in January with a final submission to the Ministry for Homes, Communities and Local Government (MHCLG) on April 30.
Medway Council says costs are currently estimates while the final plan is produced.
But council papers discussed by cabinet members show the authority is anticipating bidding for between £10 million and £20 million from the government.
Portfolio holder for planning, economic growth and regulation, Cllr Jane Chitty (Con), says the council is "keeping a very keen eye on government funding".
"This is a significant move forward," she said. "I would say we're excited but I don't get excited until the money the money is in the bank.
"With the necessary funding we can move forward. It might be step by step or a giant leap.
"It's not just a case of saying we need to improve this and that. You have to look at different areas and make an extremely potent case that will be considered.
"But if we've not got that long-term vision of what's positive and what can make a difference we won't do this at all."
The government accepted Medway's expression of interest for funding to redevelop Chatham in August.
Cllr Rodney Chambers (Con) said the approval proved the council's bid was "an exceptionally strong one" as they look to future changes.
He said: "It's not only Chatham seeing changes to retailing. The challenge is going to be what to do with the empty retail space.
"It may mean - in the eyes of some - there's some controversial decisions to make and to look at other uses for that space."
Deputy leader Cllr Howard Doe (Con) described empty shops on the High Street as "big opportunities" rather than "big problems".
He added: "No longer are they shopping centres. They are simply centres for where people come for all sorts of different reasons and different age groups.
"It's about having the imagination to see in five years time what the shopping centres are going to look like.
"If this bid succeeds - and I think it will - it may well act like a model for other up and down the country.
"We've got to concentrate and get the city centre in place. We don't think other places are less priority but we're taking advantage of funding.
"If this is successful we can make bids for other areas."
The news comes as it has been revealed when the town's Debenham's store will finally close.