Yorkare Homes has applied to North Kesteven District Council to build the home which will be a mix of three and two-and-a-half storeys.
Of the rooms 22 will be specifically for dementia care, while each floor will include lounges, dining rooms, a cinema room and a café bar.
Training rooms, plant rooms, staff rooms, offices and ancillary storerooms will also be provided.
Around 31 car parking spaces will be provided on site.
In a statement to the council, the applicant said: “As the population ages, the need for high standard care accommodation grows.
“The company aims to meet some of these needs locally and develop facilities in strategic locations.”
They said the plans have responded to feedback from the Handley Chase masterplan and design code including repositioning the site slightly, which they said “allows for a better building and site layout and improved access arrangements for residents”.
The 1,450-home Handley Chase development was given outline approval by the district council in 2015 and is set to be built off London Road.
Permission for the homes was given in August 2017 and a year later the “much needed infrastructure” – including a new community centre, a convenience store and shopping outlets – was also given the go ahead.