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A heritage grant of $20,000 has been allocated for the re-roofing, plaster repair and exterior painting of the building at 33 Russell St.
The now-pink two-storey building on the corner of Russell and Arthur Sts was originally a ground floor corner shop with an upstairs dwelling, built for storekeeper J. Airey, in 1923.
The shop was converted to flats in 2009 and was a "significant survivor" of the small businesses and shops that operated in the City Rise, information about the grant shows.
There had been a store associated with George Dryden on the site since the 1860s.
Mr Dryden built many of the original properties in the area.
The building’s present restoration has been documented on social media by its owners, who have indicated their intention to launch a new cafe there called Tomboy — named after their yacht — once completed.
Co-owner Tansy Hayden said she and her husband Paul Keesing were applying for resource and building consents for the cafe.
The whole interior of the house and shop would be renovated.
"It's going to be a lot of work. We think it will be worth it to restore a piece of Dunedin history", she said.
Receiving the heritage grant from the Dunedin City Council had given them the opportunity to give the building a much-needed paint job and a new roof.
"We think it's great that the council is helping owners to restore these older heritage properties, giving them a new lease on life and improving areas like ours.
"We are excited to potentially give locals somewhere to walk to get a coffee up here on City Rise."
