The Historic Ole Hanson Beach Club will cost $3.7 million to restore, but the city would have to do the work in two phases; it only has $2.5 million budgeted, according to city documents.
The San Clemente City Council is set to vote Tuesday on a plan to rehab the building, developed by historic architecture consultant Architectural Research Group.
Included in the first phase of renovations would be improvements to the interior, including re-configuring the ground floor; installing an elevator; repairing the roof; relocating the kitchen and other improvements.
The second, $1.2 million phase would include a total roof replacement, refinishing the wood floors upstairs, replacing with historical windows those that have been removed and completing the pool improvements.
The first phase will bring the building up to code and make it usable until the city budgets money to start the second phase, according to the staff report.
The San Clemente City Council meets in Council Chambers, 100 Ave. Presidio, at 6 p.m. Tuesday.