Smithfield leaders hope to renovate a three-story building that sits vacant downtown.

The 7,000-square foot building at the corner of South Fourth and Johnston Street used to be a hotel. Then it was the town hall. It has been vacant since 1998.

"It's an eyesore," said City Manager Eric Williams. "It's a detriment to the city."

The Downtown Smithfield Development Corporation is trying to change that. It asked the town council for permission to apply for a $25,000 grant from the North Carolina Rural Center, which would help pay for hiring an architect to study how the building could be developed.

The council voted Tuesday night to move forward with the application.

The building is privately owned. But the grant and possible tax incentives could convince the owners to renovate it, Williams said.

He hopes the building will be turned into a hotel or housing, he added.