Plans to demolish the former Norcross civil service site have been submitted to Wyre Council.
The land has been earmarked for a new development including housing, business units, supermarkets and pubs.
It would then pave the way for approximately 150 residential dwellings to be built by developer Telereal Trillium, in the form of flats and houses, should the demolition work get the go ahead.
The decision to relocate 1,000 staff to Peel Park was announced by the Department for Work and Pensions in June last year after bosses deemed the Norcross Road site was surplus to requirements.
The outline proposal’s design and access statement says: “The redevelopment of this employment site for the proposed mixed use development will assist the council in meeting its future residential and employment requirements.
“The layout of the site and the appearance of the development can be considered and designed to integrate with the surrounding area and therefore respect the site and the surroundings while contributing to the local character of Thornton and Cleveleys in terms of design, scale, massing, appearance and layout.
“It has been demonstrated that the site is accessible by a range of transport modes which include pedestrians, cyclists, public transport and private vehicle users.
“Furthermore, there will be no adverse impact on the local highway network from the proposed development.”
However, nearby residents have raised their concerns about possible noise and drainage problems at the site.
A letter from Norah Brassington, of Grassington Place, said: “We are quite concerned that there will be much more activity both traffic and pedestrian seven days a week along his area, thereby reducing our opportunity for enjoying the amenity of our own surroundings, particularly as my husband is in very poor health.”
A public consultation on the proposed demolition finishes on October 9, with a decision expected to be made by October 14.