A planning application was submitted to redevelop the old Lindsey Centre site to include a four-screen cinema complex, along with three other commercial units, and a car park.
Leader of the Council, Councillor Owen Bierley, said: "We are delighted as the local planning authority to see these exciting plans granted permission as we believe it would be a welcome asset to the leisure economy of the town.
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"However, given we are still in the middle of the COVID-19 pandemic, we have witnessed the challenges the entertainment sector has faced with many entertainment venues closed as we try to control the virus.
"With this in mind we recognise there may be some real challenges ahead but we are committed to continue to work with the leisure sector to work on plans for the future to make this long term vision become a reality."
