The site has been unused for several years and now forms part of the council’s city centre regeneration plans.
Wolverhampton Grand Theatre has an aspiration to expand its premises onto the neighbouring site for theatre, education and hospitality uses.
In March Wolverhampton Grand Theatre had a detailed planning application approved and the council’s intention is to exercise its CPO powers as the development is likely to contribute to the improvement of the economic, social or environmental wellbeing of the area.
Cabinet Member for City Economy, Councillor Harman Banger, said: “This site on one of our key city centre streets has been left unused for far too long.
“The Wolverhampton Grand Theatre has put in place bold plans to bring a major uplift to the city centre’s entertainment offer.
“We are re-imagining and re-inventing our city centre and an outstanding arts and culture offer enticing new audiences and visitors is a fundamental part of that.”
It comes at a time when Wetherspoon is set to carry out a £7 million makeover of The Moon Under Water pub on the opposite side of the street, to host its national museum and create a 70-bedroom hotel above it.
The council is proposing to make Lichfield Street pedestrian friendly as part of strategic plans to improve and better connect the city centre core between the transport Interchange and Westside.