The proposed medical centre would replace two existing surgeries at Guildhall Street and Manor Road, providing modern facilities for more than 23,000 patients.
A council spokesperson says the development is expected to “increase GP capacity, improve access to healthcare, and deliver a significant economic boost” to the surrounding area.
The Folca building on the corner of Bouverie Place and Sandgate Road used to be a Debenhams department store.
It was purchased by the council in 2020 for renovation and used as a vacincation centre during the Covid-19 pandemic.
The site is split into two sections – Folca 1 (an Edwardian red-brick building) and Folca 2 (an Art Deco section).
If the mixed‑use scheme with a medical centre cannot be delivered, the council would go ahead as a commercial‑only development instead, they said.
In either scenario, essential construction work will be required. This includes separating the connection between Folca 1 and Folca 2, with works scheduled to take place between February and July 2026.
Meanwhile, the council says it has received six offers for the Edwardian part of the building (Folca 1) and has selected a preferred bidder.