Plans to revamp Warrenpoint Baths could potentially rule out Lottery funding.
Crotlieve councillor Declan McAteer says although impressive, the project must involve restoration.
Current plans for the disused building involve a change of use.
The Heritage Lottery Fund says it's 'not in line with project objectives'.
Mr McAteer is urging Newry, Mourne and Down district council to revisit all the options.
Mike Nesbitt to retain position as Health Minister
Storm Chandra named as Met Office issues fresh weather warnings
Jury sworn in for Noah Donohoe inquest
Sharing of explicit AI images in Armagh school being investigated by police
Long-awaited inquest into death of Belfast schoolboy Noah Donohoe due to start