Multi-million pound bid for Blackpool museum
Heritage chiefs will learn next March if the application has been successful.
Further cash is also being sought from the Coastal Communities Fund and fundraisers from the Blackpool Museum Trust, a charitable body, are hoping to raise the remaining £675,500 needed for the project.
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Hide AdThe museum is earmarked for the hotel being developed on the site of the former Sands venue on Central Promenade.
There is already £4m in the pot from the Northern Cultural Regeneration Fund, while £400,000 of previous Lottery money has been used as development funding.
Other grants include £1.75m from the Coastal Communities Fund (with another bid being submitted) and £1.5m earmarked from the Lancashire Economic Partnership Growth Deal.
Council leader Coun Simon Blackburn said "significant progress" has now been made on the design of the exhibitions with more than 800 objects lined up covering circus, magic, variety and ballroom dance.
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Hide AdThere will be gallery space for loaned exhibitions including from the Victoria and Albert Museum based in London, while work is also being done with comedy scriptwriters to capture the spirit of Blackpool.
Coun Blackburn said: "The museum is a key part of our vision for the future of Blackpool town centre.
"It will serve as a great compliment to all of the other projects currently in delivery.
"The museum will enable culture-led economic growth by providing a memorable, quality and educational destination venue for visitors, creating new jobs and skills and by bringing local people together to proudly celebrate the Blackpool story. "