Work to refurbish the unit, which had closed in 2011, started in February 2021 after being given the go ahead by the Lancashire NHS foundation trust for mental health services.
It has 28 beds and provides care for people who do not require acute treatment but are not yet ready to live back in the community.
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A report to a meeting of Blackpool Council's adult social care and health scrutiny committee, says: "This unit offers a new mental health pathway that sits between acute care and community living.
"With 28 beds for people who have been in hospital and need some support to regain skills and confidence, the centre will help people with everyday tasks such as cooking, cleaning and looking after their own health and wellbeing alongside learning to effectively manage their mental health."
Facilities include treatment rooms, living space, therapy gardens and a community cafe at the entrance.
The project is among a number of initiatives to improve mental health services including at The Harbour on Preston New Road in Blackpool.
Councillors were told recruitment of staff including nurses had improved, while a dedicated gym instructor had been taken on as part of moves to encourage patients to take part in more activities.
But the committee heard plans to launch a new mental health helpline on the Fylde coast this summer could be delayed if negotiations to acquire a base for the service were unsuccessful.
The Initial Response Service aims is to offer a round-the-clock telephone service to assess people’s needs on the spot using a team of trained call handlers backed up by mental health clinicians.
A report to the committee says: “We are using information about our services to inform the plan and working closely with stakeholders and partners across the Fylde Coast teams to ensure good communication and collaboration in order that we can really make a difference to local people.”
Councillors asked for an update on the proposals to be brought to a future meeting.