The racecourse owner has applied for a liquor license to serve alcohol on the premises which he plans to reopen as a hotel, private club and public bar.
Matsim Properties, owned by the Lambor family, began repairing and restoring the grade II* listed theater last year.
The company aims to create a flexible performance space, a restaurant and café, a bar and a roof terrace, an “apart-hotel”, serviced offices and shops.
The license application relates to the restaurants and bars in the aparthotel, a private club for members, arts clubs and a bar at the front of the Middle Street building.
A Brighton and Hove City Council licensing panel is due to decide whether to grant a license early next month.
The panel, made up of three councillors, will hear from candidates, Sussex Police, council officials, supporters and opponents.
Matsim applied for a license to sell alcohol from 10 a.m. to 11:30 p.m. daily, with an extension from New Year’s Eve until 2 a.m. on New Year’s Day. And he wants a 2 a.m. finish for another 18 events a year.
If the license is granted, hotel guests will be able to use the mini-bars in their room at any time.
The license would also include a “late night refreshment” allowing food and drink to be served until midnight.
The racecourse is in an area which the council has designated as a “cumulative impact zone”, with stricter permitting rules due to high levels of crime and anti-social behaviour.
But the owners have held talks with the police to address their concerns. Proposals limiting waiter service drinks only to patrons seated at tables in the Members Private Bar and outdoor area.
Inspector Michelle Palmer-Harris, of Sussex Police, said the racecourse had amended its original request after discussions.
Force wanted under 18s to be excluded from any late or special entertainment events.
And although new off-sale licenses are rarely granted in central Brighton, police are said to be accepting the condition attached to the license to allow the sale of drinks in sealed containers at special events.
Customers leaving after 11pm would do so in Ship Street, not Middle Street.
Inspector Palmer-Harris said: ‘Sussex Police are of the opinion that, should the committee be willing to accept this request, measures are in place to minimize the potential adverse cumulative effect on the area.
“By applying the many conditions contained in the operating schedule as well as taking into account any discussion at the hearing, it is highly likely that the risk of any adverse cumulative impact will be mitigated and controlled.”
One opponent, whose details were redacted by the council on its website, asked the committee to restrict any potential license extensions in the future.
The anonymous objector said: “We are aware that this license must be granted despite being in a cumulative impact zone to make the whole racecourse restoration project viable.
‘But we would like to remind the committee that this part of the old town already experiences an enormous volume of public nuisance, whether it is noise, urination, vomiting, littering, drug use or graffiti.
One supporter, whose details have also been redacted by the council, said: ‘This development is a welcome addition to Brighton as it provides a cultural and entertainment center rather than a noisy pub or junk food outlet which it there’s so much in the area.
“Litter will not be an issue as I assume food will be served in the cafe/restaurant and not take away.”
The council’s licensing committee is due to meet at Hove Town Hall on Monday October 3 at 10am.