The Government scheme was backed by retail guru Mary Portas.
Town centre manager David Hawkins co-ordinated the bid which was shot on video by Trent Valley Academy students.
“We must congratulate local winner Market Rasen, as it shows what can be achieved when businesses take the lead and work together,” he said.
He called on town centre businesses to review the proposal and resubmit for a second round. Call 07795522246 or [email protected] by Friday 1st June.