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If approved, the development would see some much-needed council housing constructed on the site.
The plans for the land at 3 Carmelite Street detail a three-storey property consisting of three one-bedroomed flats, which would be used to address the housing shortage in the area.
The flats would be part of the Council's new build housing programme, available for rent and allocated to people on the local authority's Apply4Homes waiting list.
The scheme will cost in the region of £440,000 and will be funded via £100,000 from regeneration funds set aside by Banff & Buchan Area Committee, as well as other funding streams including a Scottish Government grant to support the delivery of new council housing and the Housing Capital Account.
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The original building was a three-storey house, accessed via a spiral stair, and dated back to the early 1700's. Most recently, the property was a shop fronting Carmelite Street, with an office to the rear and dwellings on the upper two levels.
In August 1986, the building was partly demolished due to its dangerous condition.
In December 2002, Aberdeenshire Council purchased the property on the ground floor, but the ownership of the upper floors was not transferred to the Council. Banff and Buchan Area Committee Committee approved the compulsory purchase of the rest of the property in
2007.
The plans are expected to be considered by the Banff & Buchan Area Committee this autumn.
Head of Property and Facilities Management at Aberdeenshire Council Allan Whyte said: "Aberdeenshire Council will soon begin a major consultation on the regeneration of the town of Banff. However, it is clear that we had to find a solution to the derelict site in Carmelite Street.
"Having considered the site and its possible uses, we believe that the plans that have been put forward are appropriate to the town in addressing housing shortages and the need to encourage people back into the town centre."
(JP/CD)
