Plans to turn a derelict Government building into a boutique guesthouse have been given the green light by planners.

The project was recommended for approval by the Department of Planning, which said the change would be a benefit to the area.

The planning recommendation said: “This proposal would notably enhance the appearance of the area and would be a substantial improvement to the current site conditions, which is a notable benefit given the gateway location of the site along a main entrance to the city.

“The vacant building would also be brought back into beneficial use, thereby enhancing the vitality of the area.”

The application proposed to turn the fire-damaged Teucer House on Cedar Avenue into a ten-bedroom guesthouse with the addition of a third floor and major internal renovations.

The plans, submitted by Compu-CAD Training & Services on behalf of Teucer Ltd, asked for a change of use for the former health clinic, severely damaged in a 2013 fire.

The proposal also included a two-bedroom apartment for the manager, a commercial kitchen, an elevator and an office.

The planning inspector found that the plans were in line with policy, except setbacks from Cedar Avenue and the site’s northern border.

The inspector said: “A small sliver of the proposed addition to the existing building, which would contain a stairwell as a second means of egress, infringes on the ten-foot setback to the northern lot line, however this would protrude just slightly further than the existing building line.

“Given the limited extent of this encroachment and that the neighbour to the north operates as a doctors' office, it is not considered that there would be any resultant material impact.

“There is also an infringement on the 25ft setback to the public road, however this is existing and is characteristic of the area.”

Teucer House was built in 1903 as a private home and bought by the Government in 1955.

Government used the building as a health clinic, the home of Probation Services and as the offices for Teen Services, but later became vacant.

A blaze destroyed the building's roof and upper floor in 2013.

A plan to restore the building to its original condition was submitted in 2015, but work never began.

The Government put out a request for proposal to restore the building in 2019.