The City of Lincoln Council has put The Lawn back on sale.
The guide price for the Grade II listed building which sits on Union Road is £1 million.
Chartered surveyors Hodgson Elkington have been instructed to market the property for the City Council.
The Lawn was originally developed from 1819 as a purpose-built hospital for treatment and rehabilitation before closing in 1985.
The council bought the property from the Secretary of State for Social Services in 1986 and opened it four years later as a multi-purpose venue following extensive refurbishment.
The Lawn was put on sale before in 2011, but a bid of £1 million from Lincoln hotelier Jonathan Pass was rejected. He also owns the Charlotte House hotel on the premises on The Lawn.
The council say the winning bid will not depend solely on price, as they want to see a viable and sustainable scheme for the building, which will not only work for the developer and also for the city.
It is hoped that the potential scheme will retain many of The Lawn’s original features, with the chartered surveyors expecting to see a number of different proposals for the site coming forward.
They believe a mixed use commercial development will ultimately form part of any successful bid, perhaps including restaurant, function, office and retail uses. However, other expressions of interest are invited.
Jaclyn Gibson, Assistant Director for Business Development and Finance at the City Council, said: ”The Lawn is an iconic site that, given its uphill location and its proximity to the cathedral quarter, is very important for the city
“Its location adjacent to the Castle means it should be making a more significant contribution to what Lincoln has to offer residents and visitors.
“We are keen to attract the kind of investment the Lawn needs to allow this to happen,” she said.
Dan Race, Partner at Hodgson Elkington, said: ”We are delighted to be working in partnership with the City of Lincoln Council, especially as we have been tasked to find a buyer for one of Lincoln’s most iconic buildings.
“Although we see this as a challenging project we are extremely positive and excited about its potential.”
The Lawn site totals around 1.62 hectares and includes three main buildings, the main complex, the conservatory and Charlotte House (which is subject to a long-term lease), as well as the south lawn and car parking.