Dozens of new apartments are planned to transform a former cinema in Mapperley - but its current tenants have vowed to fight the plans.
A 26-unit apartment block is earmarked on Woodborough Road aimed at families and young professionals, designed to replace existing buildings at the site which could be demolished.
The cinema has been closed for many years and the plans have been submitted to Nottingham City Council for consideration.
Chris Yorke, 33, director at MHA Architects, the planning agent working on behalf of the applicant, said: "We had looked to reuse the existing (cinema) building... it's in a state of disrepair really. It's a bit of a health hazard.
"It's not in the best condition and would take a lot of work to bring it up to current standards.
"As you can appreciate, with the form and layout of the cinema theatre building it's not easily transferable in terms of a refurbishment element."
He said the development of one and two-bedroom apartments would target "smaller families and young professionals" in a location with "good proximity and good links to the city centre".
A number of businesses currently operate from the site.
Steve Wesson, 46, owner and director of the Haunted Museum, which runs from the former cinema site, said: "We have spent the last year bringing it back to its old self.
"We do not want people to think the place is going to be demolished because someone has put [in a planning application] without owning the building.
"It's very strange. We do need to put a stop to it somehow. It's part of Nottingham's heritage."
He said he received a letter earlier this week from the council notifying him of the plans.
Mykl Curwood, 30, of Nuthall, works at the Jon Jepson Black Belt Academy, based in the basement of the former cinema.
He added: "I do not think [the applicant's] bought it yet.
"I do not think it's relevant. The building's quite an important building. It's an important part of this area."
He added it would be a "shame" to see apartments built at the site.
The applicant was listed as Sudakar Konda, of Konda Properties Limited.
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