Ambitious plans to build a new hotel on a key site in Gainsborough have taken a major step forward this week.

The £3 million scheme will transform the former Sun Inn site on the corner of Market Street and North Street in Gainsborough and work could start on site early in 2015.

West Lindsey District Council’s Planning Committee unanimously approved the £3 million development in August this year but the decision was referred to the Department for Communities and Local Government (DCLG) for final approval.

The DCLG has now confirmed that the decision can be determined locally- effectively upholding the councillors’ unanimous approval and giving the go-ahead for the plans.

Developers Dransfield Properties are working with architects to transform the Grade II listed building into the Edwardian style hotel housing 51 bedrooms which is in keeping with the neighbouring buildings.

Mark Dransfield, managing director of Dransfield Properties, welcomed the news from the DCLG.

He said: “We were delighted to have the unanimous approval of councillors for our hotel development, as well as the huge amount of support it has received from the business community in Gainsborough.”

“There’s been a long held aspiration for a hotel in a central location in the town which will benefit both tourism and local business and this is a great step forward in realising that aspiration.”

“We have always maintained from the outset that this is an important decision for the town which should be determined locally and we’re delighted that DCLG agree with that position.” he added.

Coun Stuart Curtis, head of the planning committee, said he was ‘pleased’ the hotel had been approved and believed it was an ‘extremely positive’ step for the town.

He said: “It’s important that we preserve all listed buildings as they are part of our heritage.”

“A hotel will bring investment to the town, open up the market place nearby and encourage people to bring more business to Gainsborough.”