North Kesteven District Council approved plans for a £1.5m redevelopment of Sleaford town centre.
The final decision was made at a Full Council meeting on Thursday, April 26.
As previously reported, the district council’s agreed to purchase a 99-year lease for land to develop a cinema and public realm.
The council previously said that around £1.5 million could be invested from the authority’s capital programme.
In addition to the cinema, a pedestrian crossing over the River Slea connecting Money’s Yard to Market Place will be built.
There are further plans to provide public open spaces as part of the development.
When the recommendations were initially agreed, council leader Richard Wright said that this was “an important milestone in the redevelopment of the town centre”.
He said: “We’ve been working hard on the regeneration of Sleaford for some time with partners and other organisations who are all committed to seeing the town thrive and survive.
“One of the key aspects picked up on when the masterplan for the town was created was the need to give residents more of a reason to spend their money in the Sleaford rather than going elsewhere.
“The Heart of Sleaford project would not only do this, but also attract visitors from further afield as well, boosting the local economy and supporting local businesses.”