Plans to transform the former Wakefield Arms pub into new apartments have recently been drawn up.
But according to old haunting tales, any new tenants may not be the only 'people' living there.
Steve Jones, the organiser of Wakefield Pagan Moot, said he recalls eerie goings-on when the group used to meet at the building.
He said: "We used the large back bar of the Wakefield Arms for over 10 years until it's sudden closure in 2003 forced us to go elsewhere.
"Back when we used it, the pub was haunted by a "Grey Lady" ghost.
"Nobody knows who she was, but if it was mentioned about her by myself or others at the moot, often the lights would flicker or strange stuff would happen.
"I have often wondered if she still haunts the ruin.
"So someone might find out there is already a 'sitting tenant'."
The Wakefield Arms was a popular live music and jazz venue in the heart of the city in the 1970s and 1980s.
But since its closure in 2003, it has been plagued by vandalism and has sat derelict and boarded up.
The Grade II-listed building, near Kirkgate railway station, could now be given a new lease of life.
Plans have been submitted to Wakefield Council requesting permission to restore it and expand it to create 14 new apartments.