The fate of one of the Gold Coast's most prized nightlife scenes will be decided by the Council this week.

Key points: Burleigh Pavilion has applied to change its approved land use from restaurant to hotel

Burleigh Pavilion has applied to change its approved land use from restaurant to hotel The state lease says the land cannot be used for anything other than a swimming pool, kiosk, restaurant and associated health facility

The state lease says the land cannot be used for anything other than a swimming pool, kiosk, restaurant and associated health facility Gold Coast City Council will make a decision on the application on January 30

Owners of Burleigh Pavilion are seeking to change the popular location's approved land use, which could open the door for poker machines and early-morning trade.

Gold Coast City Council (GCCC) is due to make a decision on the application for a material change of use for level one of the building, from a restaurant to a hotel, on January 30.

Burleigh Pavilion's development application states it will continue with existing operating hours — 6:00am to 12:00am Monday to Sunday.

"The application does not include approval for later trading hours or large events, nor does it — or did it ever — seek approval for poker machines," owner Ben May said.

Community fears

Residents, however, are worried a change of land use and subsequent approval of a hotel licence will allow future operators to take advantage.

Member for Burleigh Michael Hart remains sceptical. ( ABC Gold Coast: Jennifer Huxley )

"Once the facility is changed to a hotel, that won't stop the next owner from deciding that he does want to put poker machines in and does want to operate until 2:00am or 3:00am," Burleigh MP Michael Hart said.

"The lease doesn't allow for a hotel and that should be the end of the story."

There are also concerns other elements of the building protected by the lease — including the defunct downstairs community swimming pool — are at risk.

Mr May said Burleigh Pavilion was preparing to lodge plans for new swimming facilities in the mothballed section of the building on the ground floor.

"I'm really excited about our plans for the new pool and cafe," Mr May said.

"A bakery, salad, casual-style space opening to the park, beyond which will be a 25m saltwater pool with steam, sauna and cold baths."

Lease loophole

Burleigh Pavilion signed a 30-year lease arrangement with the Department of Natural Resources, Mines and Energy (DNRME) in 2015, which set out strict conditions for the use of the site:

(1) The lessee must use the leased land for commercial/business purposes, namely for swimming pool, kiosk, restaurant and associated health facility purpose and for no other purpose whatsoever; (2) This lease may be forfeited if not used for the purpose stated above

A DNRME spokesperson confirmed the lease had not changed but did not rule out future alterations.

The swimming pool that previously operated in the Burleigh Pavilion building. ( Supplied: Rackley's Swimming )

Mr Hart said there was a legislative loophole that would allow GCCC to approve the change to a hotel licence without considering the terms of the state lease.

He has sent a request to Natural Resources, Mines and Energy Minister Anthony Lynham, asking for it to be corrected.

"At a recent meeting with council officers overseeing this application, I was told the DNRME gave consent to make this application, as required by the Planning Act," Mr Hart said, in the letter.

"Yet there was no legislated requirement for the Council to take into account conditions of the state lease held on the property as part of their decision-making process.

"It seems to me, from the advice I received, Council does not need to consider the conditions of the state lease.

"This is an oversight in the legislation which needs to be corrected."

If GCCC approves the change, an application will need to be made to the Office of Liquor and Gaming Regulation for a hotel licence.