The historic Paragon in Katoomba will get a new lease of life after a planning panel gave the go-ahead to proposed repair and restoration works.
The historic building, more than 100 years old, is on the state heritage register and is also listed by Blue Mountains council as a significant site.
It was established in 1916 by Zacharias (Jack) Simos, who opened it as the Paragon Cafe and Oyster Palace.
Over the years water has leaked into the building, damaging much of the historic fittings.
The state of the building was one of the factors behind a lease dispute between former tenant, Robyn Parker, and the owner, Sydney solicitor John Landerer.
Ms Parker left the business in May 2018 and the building has been empty ever since.
A local planning panel approved the $360,000 proposal last week. As well as replacing damaged door frames, floorboards and decorative panels, work will also be done to repair the stormwater drainage system and the roof to prevent further leaks.
The kitchen, cool room and pantry will have to be stripped to allow for repairs.
The planning panel stipulated that a heritage architect be employed on site as an integral member of the design and construction project team. The architect will remain with the team until the works are completed and the building reoccupied.
The architect will have to keep a site diary including before and after photographs.