The £212,000 action plan is yet another attempt to try and get the Lower Promenade building fully up and running, seven years after it was built.
The council took it over in 2002 after the community group that conceived it, the Saltburn Improvement Company, ran into difficulties.
The £600,000 building has two retail units - Charlie's Don't Surf and another which is currently under offer and hoping for a summer opening. It also houses the Seaview Restaurant, changing and shower rooms for surfers and a community room. Since its inception it has been dogged by damp problems, legal wrangling and allegations that it was turning into a "white elephant".
The council's Cabinet member for culture, leisure and tourism, Councillor Sheelagh Clarke, said: "There have been real difficulties with this development since it was delivered by the Saltburn Improvement Company and we need positive action. A lot of work has already been done in securing our control of the building and we believe its tenants appreciate we are moving forward with purpose. I am delighted we are very close to having the building fully let for the first time, but there remain problems."
A structural survey identified the building needs remedial works and an annual maintenance regime. It will cost £212,000 over two years. The first year will tackle structural issues, roof and damp problems. The second year's budget is earmarked for replacing shutters and tackling brickwork and decoration.
Cllr Clarke added: "The need for funding is paramount - if not, the building will remain in disrepair and with the limited maintenance budget currently available, the structural issues will not be addressed. The state of the building will inevitably deteriorate, so approval funding is essential to carry out the renovation to bring it back to an acceptable standard."