After 16 years of decay and wrangling over different plans, the Dock Street building designed by 19th century architect Decimus Burton has got firm planning permission for restoration.
It was approved by Wyre Council's planning committee yesterday and work will begin within weeks to improve the crumbling building.
Facade
The neo-classical facade will be restored to match Burton's original drawings and will contain 17 apartments for sheltered accommodation.
After the meeting, John Clarkson of C and C Developments said the work would begin soon, but could not say how long it would take to complete the project.
Planning officers were worried some windows on a rear extension would overlook another property and one window was too close to a wall.
But councillors said there should be partially obscured glazing to get round the problem.
C and C plan to buy neighbouring properties and demolish the problem wall. They then could apply to have clear glazing.
Mr Clarkson told the committee: "We would have a quality house in the down-town area of Fleetwood – and we are not looking for any grants."
Coun Ron Shewan said: "It's so badly needed in Fleetwood. It can only do good on Dock Street – it is win, win all round."
Iain Johnstone of Wyre Civic Society told the committee: "We should be looking at the best practical way of progressing it, not putting obstacles in the way."
Burton laid out the original street plan for Fleetwood and also designed some of its finest buildings.
It is believed the Dock Street property was let to him in 1841 as an office and was one of the first buildings to be erected in Fleetwood.
Much of the building has collapsed and it is supported by scaffolding.