"This is a hugely exciting time", the founders Isle of Wight Distillery have told the County Press, as they unveil plans for Ryde's derelict ice rink.
Proposals has been submitted to turn the former Planet Ice, which has been closed for around seven years, into the Mermaid Centre.
The distillery said it would create jobs and see the creation of a new tourist attraction.
Although the building has yet to be sold to the home-grown Island business, an application has been lodged for change of use.
Read more: Mermaid Gin hopes to take on Isle of Wight's Ryde Arena
Without planning approval, the distillery said it could not further decisions regarding relocation.
If approved, it would see the site refurbished and turned into a production facility, "with sustainability at the forefront".
Co-founders Xavier Baker and Conrad Gauntlett said: "This is a hugely exciting time for our home-grown island business.
"We have received great support from our community over the years; we hope to provide positive opportunities for people and boost the local economy with this exciting new venture."
The planning application said existing operations at the Wishing Well, Nettlestone, and another of its sites, are now running at maximum capacity.
It states that it would provide an opportunity for the business to grow and generate employment opportunities.
The Mermaid Centre would be similar to the Bombay Sapphire visitor centre based in Whitchurch, Hampshire.
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