West Lindsey District Council is set to spend more than £500,000 on revamping a former Gainsborough building into flats and a shop.
Councillors will be asked to back the plan to spend £538,500 to repair and convert the building at 5-7 Market Place in the town.
The proposal was delayed last year, when the sum was just £387,000.
The scheme would see the former building converted into three flats and commercial space.
As part of the proposal, the council would look to sell the apartments at £85,000 each and use the commercial unit as a revenue stream.
The authority said the total cost would partly be funded with grants at a total of £162,000.
£376,500 worth of capital receipts would fund the rest of the plan.
Meanwhile, the council said the building cost £4,773 to maintain last year and the sum would increase the longer it is left empty.
The officer’s report said the the council needed to intervene in order to prevent the building from falling into disrepair.
It said: “The property has received interest from various potential tenants and purchasers.
“Unfortunately all interest has been withdrawn due to the extensive structural costs and conversion limitations related to its listed building status.
“The property has fallen further into disrepair and it will not be developed without this intervention.”
The authority will make a decision on the plan at a meeting on December 4.
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