Ms F. Alrashaid has applied to North Kesteven District Council to change the use of The Old Chapel off Kincross Road in Greylees.
The application includes a new customer car park.
In documents submitted to NKDC’s planning department, Robert Doughty Consultancy said the hope was to provide a “casual all-day dining cafe and bar serving brunch, lunch and dinner from 9am-9pm” – although the trading hours would go up to 11pm from Thursday-Saturday.
“The interior will reflect the uniqueness of the chapel and provide a warm and comfortable atmosphere, with hospitality and familiarity at the core,” they said.
“The business will be COVID secure, with socially distanced seating, full table service and maintain compliance with the changing guidance.”
A takeaway service will also be operated.
The owner said the new business will create around 20 new jobs, including eight full-time employees and “further part-time staff”.
The mid-late Victorian building was previously used as the Rauceby Hospital Chapel and in 2018 was given permission to be used as a day nursery, however, the prospective buyer pulled out.
It is also part of a Grade II registered park and garden and conservation area surrounding Rauceby Hospital itself.
Recently it was announced that Invicta developments of Stamford had acquired the remaining central core buildings comprising the old ward blocks, nurses’ quarters and administration building of the neighbouring old hospital with plans to restore and develop them for residential, community and retail use.