South Kesteven District Council has granted outline planning permission to build a new clubhouse for Deepings Rugby Club, an art and cultural centre along with a nursing home, day centre and new homes in Deeping St James.
Bourne-based developer Larkfleet Homes is now going for approval to build 32 affordable homes on The Orchard site in Spalding Road after lodging a reserved matters application.
The plans include a mixture of terraced, semi-detached and detached two to three bedroom houses, which will be available to rent or offered in shared ownership deals.
Larkfleet's planning director Richard Edwards said the firm was working with Nottingham Community Association on the development.
He said: "It is very early days. We are hoping it will be well received by councillors and the local population."
Mr Edwards says that the firm was holding negotiations on the plans to create a nursing home on the site.
The Mercury reported in December that Deepings Rugby Club had secured funding to buy the parcel of land but members are remaining tightlipped over how much money has been secured or where it has come from.
The future of the current clubhouse in Linchfield Road is in doubt as the club is unable to extend its present lease beyond 2015 due to possible extension plans for The Deepings School.
Club president Peter Ward said the group had held talks with Lincolnshire county councillors.
Members of Deepings Arts are working on the project to create an art and cultural centre.
The group is due to be applying shortly for charitable status and has been told that the building would cost £3.3m to construct.