The former Scarborough Borough Council offices on Skinner Street, Whitby, could become a hotel with the building looking set to be sold.
The building, which has been empty since last year, has been the subject of a bid from an unnamed party.
Last week, Scarborough Council’s cabinet agreed to dispose of the building.
The price has not been made public.
A report, which went before the cabinet, stated: “At present, the council is liable to pay business rates on the premises to the value of £5,000 per annum.
“By disposing of the premises the council is able to avoid these annual costs although would lose the opportunity of achieving any rental income from the site.
“With the building not appealing to potential tenants, it is unlikely, in the short term that the rental income budget will be achieved and therefore disposal is the preferred option.”
The purchaser has designs on turning the building into a hotel and took pre-purchase advice on whether it would be against planning policy to change the use of the offices.
The cabinet report added: “Planners would be comfortable with the change of use as it will contribute to the tourism economy.”
Speaking at Tuesday’s meeting, Streonshalh councillor Sandra Turner (Con), said the sale was “very welcome.”