Glasgow City Council is considering whether to force the sale of a historic building which has lain empty for decades.

The A-listed Egyptian Halls, designed by Alexander “Greek” Thomson, has been covered by scaffolding for over 15 years.

Next week councillors will consider whether to use a Compulsory Purchase Order (CPO) to transfer the Union Street building to a new owner for a redevelopment, which includes plans for a food market and hotel.

The council said the owner of the Egyptian Halls recently refused a bid to buy the building from a group led by arts guide The List and real estate company Ediston.

Council papers said the proposals included a new food market or restaurant development on lower floors, with a hotel on upper floors.

It would retain the existing building and create a “modest extension” to the roof for more floor space.

A spokesperson for The List said: “The List is working closely with Glasgow City Council and a number of organisations to deliver something special for the city of Glasgow which brings the best of Scotland’s food and drink together and restores the A-Listed Egyptian Halls.”

The council said that having a “deteriorating building” at such a prominent site – opposite Glasgow Central Station – was having a “significantly detrimental economic, social and environmental impact” on the city centre.

Built in 1872 as a commercial premises for an iron manufacturer, the Egyptian Halls is considered one of Thomson’s masterpieces.

The upper floors fell into disuse in the 1980s and the council said it had attempted to engage with the owner to bring the building back into use without success.

And six years ago, the building was named among Europe’s most at risk over fears its current state of limbo could rumble on for years until it is beyond repair.

Historic Environment Scotland (HES) said the Egyptian Halls was “rightly considered to be one of Glasgow’s finest and most iconic buildings”.

But a spokeswoman said that the building required investment for structural and fabric repairs, as well as a modern fit-out.

She said the building was in a “fair condition” and “reasonably weathertight” so it could realistically be used again.

The Contracts & Property Committee will consider the CPO on Thursday 6 February.

The council must consider proposals from any other interested parties, including the owner, before it can promote a CPO.

This would transfer the property to a party who presents a viable plan for the future of the Halls.

Ruairi Kelly, convener for built heritage at the council, said: “The Egyptian Halls are an architectural treasure of national importance right in the heart of our city.

“Yet the pursuit of solutions leading to its repair and restoration have dragged on for decades.

“While there remains no indication of a viable plan coming forward from the building’s owners, the concern is the Halls continue to deteriorate.”

He said councillors will be asked whether “the time is right” to look at using CPO powers to acquire the building.

Mr Kelly added: “CPOs can be lengthy and complex legal processes but this would be the first major step towards the repair and reuse of this beautiful building, bringing part of Glasgow’s heritage back into city life, with so many positive impacts for our city centre.”

Niall Murphy, director at Glasgow City Heritage Trust, welcomed the move from the council and said it could help “bring the current impasse to a head”.

He added: “The situation needs to be resolved due to the blight being inflicted on Union Street.

“The Egyptian Halls is Alexander ‘Greek’ Thomson’s commercial masterpiece but, sadly, has been on Scotland’s Buildings at Risk Register since 1990.

“Getting the building back into sustainable reuse will help regenerate this part of the city centre while ensuring a future for one of the architectural jewels in Glasgow’s crown.”

Dundee businessman Derek Soutar, who owns the building through companies Union Street Properties Ltd and Union Street Investments Ltd, said he did not consider the recent offer to buy the Halls to be legitimate.

He said his companies had “wasted so many years” attempting to collaborate with the council and Historic Environment Scotlandon proposals for the Halls, including a museum or a “Mackintosh-Thomson Mews” lane linking central station to Buchanan Street via an extension of Mitchell Lane.

Mr Soutar said he would now look to pursue purely commercial options.