THE abandoned buildings of the former Tertia Trust site will be flattened.
Neighbouring Thorpe Park will extend its holiday park onto the land once the buildings have been cleared, making room for 51 static caravans.
Bourne Leisure hopes to start the month-long demolition work in mid-July.
It said the work was "in the interests of health and safety" as the buildings are "dilapidated" and after a series of incidents of vandalism and arson.
The Tertia Trust, based in South Sea Lane, Humberston, hosted residential visits from groups of young people since its formation in 1987.
It was eventually wound up in 2014 just months after being the focus on an investigation by the Charity Commission, and after falling on hard times to the poor state of its dormitories.
The Commission eventually confirmed it would be taking no further action after looking into a complaint about the Trust's finances.
New trustees, former leader of the council Chris Shaw, the late Mick Burnett, who was the then-deputy leader, and former councillor Alex Baxter later announced they were aiming to bring the site, which is owned by Bourne Leisure, the owners of Thorpe Park, back into use following an initial £120,000 revamp.
However, this never materialised.
According to council papers, Bourne Leisure is in talks over the expansion of Thorpe Park and hopes to submit a full planning application in early July.
The owners said the remaining buildings remain on the site have become increasingly prone to vandalism; including attempts to set the buildings alight.
"The buildings, therefore, pose a security and safety concern," they said.
"Bourne Leisure is keen to remediate this situation promptly, and prior to the redevelopment of the site."
The owners have applied to the council to see whether they need approval to level the site.
A spokesman for Thorpe Park said: "Thorpe Park continues to be ones of the most popular holidays parks in the country and brings visitors from around the UK to the region, boosting local businesses and attractions in the process.
"We are committed to building on this success and plan to make more accommodation available on a site that is currently not being used."
The company added: "The new caravans and landscaping will be in keeping with the aesthetics of the vicinity and we hope the resulting increase in visitors will help the park, our employment and local economy to prosper even further."
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