A Popley boozer shut down earlier this year is set to be reduced to rubble to make way for houses.
Basingstoke and Deane Borough Council bosses are looking to transfer the lease of The Barbican Inn on Maldive Road to Sentinel Housing Association.
Sentinel are currently spearheading the regeneration of Maldive Road and Faroe Close.
Planning permission has already been granted and construction of 237 new homes is currently underway.
The Barbican Inn site is not part of the regeneration plans because the pub owners, Enterprise Inns, did not want to give up the land.
The company are paying £26,000 per year to the borough council in ground rent.
In March the pub was shut down for three months by police after being granted a Closure Notice under the Anti-Social Behaviour Act 2003 by Aldershot Magistrates Court.
Cops who raided the pub confiscated cocaine and Popley East councillors said they had received numerous complaints from residents about the boozer.
Councillor Mary Brian said: “It was a rotten pub and a great deal of trouble. Around the area there were a lot of drugs and graffiti.
“I am sure people are not sorry to see it go.”
A report to the borough council cabinet said Enterprise Inns had planned to re-open the Barbican.
But the company has since changed its mind and offered to surrender the lease to borough council, enabling the boarded-up pub to be demolished making way for up to 10 flats.
Cllr Brian said: “It is a shame that it is going because some pubs do bring something to the community, however in this case that did not happen.
“The loss of the pub is not going to be felt by residents.”
Council leader Andrew Finney, said that the borough council expect compensation to make up for a loss in rent money.
They have asked Enterprise Inns for a one-off payment of £520,000.
Council bosses will consider green lighting the deal in a cabinet meeting on December 2. If agreed, the borough council will suffer a £12,000 shortfall in revenue from the site that Cllr Finney said will be found from elsewhere, adding: “The Maldives and Faroe regeneration scheme is one of the success stories. We have a major housing project for the borough and are sacrificing money for the benefit of residents.”
