Cape Breton Regional has voted to pay to demolish the North Sydney Forum.
Engineering firm CBCL estimates that tearing down the former ice rink will cost between $165,000 and $195,000.
The CBRM will have to borrow the money for the job and take over ownership of the building from the North Sydney Community Forum Society.
North Sydney councillor Charlie Keagan moved the motion calling for the municipality to acquire the property at no cost to the CBRM and pay for the demolition.
The municipality will look to recover some of the cost of the demolition through the sale of the property.
Keagan says the large tract of land will make good use as a new housing development.
Another potential use is turning the site into a marshalling yard for commercial trucks at the nearby Marine Atlantic ferry terminal.