The historic Shepherds Hill Observation Post Complex could become a whale watching centre under a restoration plan put forward by a Newcastle councillor.
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Councillor John Church has submitted a notice of motion for Tuesday's council meeting to undertake "urgent remedial works to stabilise and protect the complex from further deterioration", and form a working party to oversee an engineering and feasibility study assessing options available including funding sources.
He said the site needed attention as its "ongoing degradation is rapidly becoming an eyesore".
The motion comes off the back of a proposal by retired Royal Marines Lieutenant Commander John P. Robinson, who said the site's fortifications played a key role in the defence of Newcastle during World War II, with the city's protection considered highly important due to the local steel industry and port.
"The fortifications at Shepherds Hill are a visible reminder of the defence network that once surrounded Newcastle but are now in poor shape," Mr Robinson said in his proposal.
"Overlooking King Edward Park, the fortifications continue to be eroded by the weather as well as to damage and defacement caused by vandals."
The site was state heritage listed in 2010. A structural report of the site in 2016 noted the current condition of the Observation Post meant it was not suitable for occupation or public access and significant structural remediation would be required before access is possible.
Mr Robinson's proposal said the site's the other buildings were also in need of "urgent remediation" including the gun emplacement, which originally housed the disappearing gun. He said the underground rooms and tunnels also offered "considerable scope for future use, possibly as a site for a permanent display".
The proposal is also in line with a project being coordinated by Newcastle Industrial Heritage Association called Fortress Newcastle, a World War II research initiative that encourages preservation of war sites including Shepherds Hill.
Cr Church said the site was one of the best viewing spots in the city and the proposal would complement the restoration of the Shepherds Hill cottage.
In response to the motion, council's infrastructure and property director listed an alternate motion stating that works associated with the upgrade were "significant" and beyond council's capacity as the Crown Land manager.
It also suggests the council CEO write to the Minister for Defence to "seek funding for feasibility investigations and concept plan for the adaptive reuse of the site, which could include activities such as whale watching".