Leaders at Sheffield City Council are set to consider a report into a controversial plan to sell the Mount Pleasant building in Sharrow Lane to a care home provider.
Entrepreneurs Pennie Raven and Jonny Douglas who hoped to transform Mount Pleasant into a community development, said they were shocked at Sheffield Council's decision, which was subsequently called-in by members.
The pair, who are current 'guardians' of the 18th century site, hoped to carry out a £17 million transformation of the mansion and its grounds into around 200 flats, shops, offices and community skills club.
The Heart of Sharrow project would have seen social enterprise Avenues to Zero take on the site on a 250-year lease, with the works funded by socially-minded investors.
The council's economic and environmental wellbeing scrutiny and policy development committee considered the call in last month and interviewed Cabinet Member for Finance Councillor Olivia Blake, who had first proposed the site be sold to the Hermes Care group instead.
However, the committee is recommending that no action is taken in relation to the call-in decision, and to hold a meeting with members of the Avenues of Zero project.
In February, a statement issued by Mr Douglas and Ms Raven said: "The purpose of this tender for the sale/ disposal of Mount Pleasant was to select a preferred developer to work with to ensure the best use of this vital community and heritage asset, and we do not see how a care home for private profit over our 'for the community' scheme can be justified.
Sheffield council cabinet is recommendedc to note the report when they meet at Sheffield Town Hall on Wednesday, April 18.