A plan to reopen the historic Woodhall Spa baths, which gave the Lincolnshire village its name, has been announced by developers after 15 years of attempts to renovate the derelict building – currently considered an eyesore by residents.

The Woodhall Spa Pump Room and Baths, which closed in 1983, has been bought by a retired Lincolnshire businessman who wishes to remain anonymous. Developer GN Construction is working with spa developer Wheway Lifestyle International to open the baths.

The project will cost an estimated £5m and GN Construction hopes to have the baths ready by 2016, according to an article by local news site horncastlenews.co.uk. The council’s conservation team and a local heritage group are also involved in the plans, to help the developers retain the building’s character.

At the moment the Victorian building has broken windows, in addition to numerous holes in the roof and walls, according to the BBC.

The developers hope to use the original water spring used in the spa, which was discovered accidentally in 1821 by John Parkinson who was digging for coal. Nine years later, the Pump Room and Baths were erected over the well and the adjacent hotel was built, but was destroyed by fire in 1920. The baths closed in 1983 after the shaft leading to the well collapsed and the property has since become derelict and a victim of vandalism.

“In its heyday, the baths attracted hundreds of people,” said Craig Leyland, portfolio holder for economic generation and a Woodhall Spa ward councillor for the East Lindsey District Council. “It brought people up from London.”

The first job for GN Construction is to work out if it will be possible to connect the original water supply.

Tanya Wheway of spa development company Wheway Lifestyle International said: “I think it is great that we can take an area that has such a connection with the spa and bring it back to life. We will try to take the best of the old and combine it with the best of the new. We are keen to create something special that people will travel to experience.”

Leyland believes the new spa will benefit the entire county, once it receives the relevant planning permissions.