Lewes District Council is pursuing plans to establish a new hotel in the county town.
Springman House, on the corner of Lancaster Street and North Street, has been earmarked for conversion – and could be a money-spinner for the council.
The Cabinet has agreed ‘a strategic opportunity’ has arisen to provide a commercial development of the council’s landholding.
It has approved the allocation of funding of up to £700,000 for consultation, professional fees, surveys and a planning application in respect of the Springman House site.
The Cabinet has agreed to undertake early public consultation with a range of stakeholders prior to submitting the detailed design for planning purposes.
It has agreed the proposed scheme for a new hotel facility would create employment opportunities, economic benefits and a revenue stream for the council.
The vacant former ambulance station is a part single and part two-storey building dating from the late 1960s.
It stands on the site of the demolished Royal Naval Prison, the cellars of which were once used as a practice firing range for the Territorial Army.
It is understood Local Growth Funding allowed the council to purchase Springman House in March last year.
The Cabinet has agreed to delegate authority to the Director of Regeneration and Planning, in consultation with the Lead Member for Finance and Resources, and the Strategic Property Board, to develop a detailed design for a commercial development scheme at Lancaster Road/North Street in readiness to submit a planning application.