The High Court has been told of the “dire need” for regeneration amid claims the government acted unlawfully over its plan to turn RAF Scampton into a centre for asylum seekers.
The Home Office wants to house up to 2,000 migrants at the former RAF site.
On Wednesday, West Lindsey District Council (WLDC) outlined its application for a judicial review of the decision.
It said the if allowed to proceed the plans risked a £300m regeneration project five years in the making.
WLDC wants to use the 800-acre location near Lincoln for aviation, heritage, tourism, education and research, with a deal to develop the site through partners Scampton Holdings Limited announced in March.