The former Gainsborough Standard office will be turned into flats and shop.
West Lindsey District councillors will be asked to back the plan to spend £538,500 to repair and convert the building at 5-7 Market Place, Gainsborough.
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 and £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 property was bought by West Lindsey District Council in 2013 for £172,000.
Before it was sold it was the Gainsborough Standard’s office before it moved into Marshall’s Yard.
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“Unfortunately all interest has been withdrawn due to the extensive structural costs and conversion limitations related to its listed building status.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.
The report presented to councillors last year, when the proposal was for £387,300, said: “If this building is not renovated it will fall into further disrepair, this will cause harm to the historic market place but also threaten any future grant opportunities for the council.
“It is acknowledged that the project is relatively high risk in terms of both viability and financial outlook.”