The Lawn was put up for sale last year because the council was no longer able to invest in the property and keeping it was therefore not feasible.
Local businessman Jonathan Pass was the only person to make a bid for the Grade II listed building even though there were a number of interested parties.
On Monday (2nd July) the council turned down the bid, saying the bidder’s vision for the site didn’t match the council’s and the bid didn’t meet the council’s expectations in terms of price.
Councillor Ric Metcalfe, Leader of the City of Lincoln Council, said: “We stand by our decision to put The Lawn up for sale because of the ongoing costs of its maintenance and because it does not fit with the council’s current priorities.
“However it is vitally important that we explore every possible option before agreeing to sell such an important public asset and although it is not the primary driver, we must ensure that any sale provides a fair return to the public purse.
“Our first priority is to inform the unsuccessful bidder and to write to all of our tenants with an update. We will now have to sit down and carefully consider all of our options. We will continue to keep our tenants and the general public fully aware of our plans.”
The City of Lincoln Council is looking to re-market the complex in the near future.