When Gladstone’s lease expires in October 2017, the Pacific Palisades beachside restaurant may be eligible to snag a four-decade lease that would encourage investors to put up millions in renovation funds.

The L.A. County Board of Supervisors voted on Tuesday in favor of creating a lease that would double the current limit of 20 years. The plan now needs approval as a bill in the state legislature, since the property at Will Rogers State Beach is owned by the California Department of Parks and Recreation.

With a longer lease term on the table, county supervisors are aiming to bolster a competitive bidding process that would help assure a long and stable future for the famous site that perches above the ocean.

“We’re asking that the property be repositioned,” said Carol Baker, a spokeswoman for the L.A. County Department of Beaches and Harbors, which manages the site. “Whether it remains with the same operator or not, we’re looking for significant upgrades.”

Beachside structures always require significant maintenance, she added, and the property needs additional improvements.

Supervisor Sheila Kuehl presented the plan to the Board of Supervisors on Tuesday, writing in a motion, “Because the existing facility is seriously deteriorated and outdated, the Department desires the successful bidder to construct an entirely new facility.”

The county takes about $1.7 million annually from Gladstone’s rent, but dropped the rate to about $900,000 this year in light of the restaurant’s “financial difficulties,” according to the motion.

The restaurant opened in 1972.

Real estate reporter Daina Beth Solomon can be reached at [email protected]. Follow @dainabethcita on Twitter for the latest in L.A. real estate news.