Councillors are wanting to spend £7.5 million building 35 flats above the arcade
The disused upper floors of Bognor Regis Arcade could be turned into flats if £7.3 million proposals from Arun councillors go ahead.
The plans gained support in a meeting on Tuesday, with councillors looking to borrow a sum of £7,362,747 to build 35 rentable flats in the arcade to offset maintenance costs that would rack up if left derelict.
The suggestion trumped other options, including selling the Arcade, using it for social housing, or doing nothing at all - the latter striking up concerns that the council's reputation could be damaged for leaving it in a poor state of repair.
Councillor Dr James Walsh said the council had been "saddled with a millstone around its neck" when it bought the Arcade in 2017 with high hopes for investment and regeneration.
Regeneration consultant Neil Taylor described the current state of the building's upper floors as "grim" and "full of pigeons."
The committee's recommendations will be put forward once again at a policy and finance meeting, before a final decision is made by the full council and planning permission is requested.