An independent commissioner has declined a request for resource consent to demolish the 110-year-old Thain's Building in Whanganui.
Karantze Holdings, the owners of the heritage building at number 1 Victoria Ave, said the building is earthquake prone and not economically viable to strengthen.
Thain's has a capital value of about $300,000 but it could cost up to $1.8 million to strengthen and refurbish.
The commissioner, Rob van Voorthuysen, considered 33 submissions - 32 against the demolition and one in favour - before making his decision.
Mr van Voorthuysen said the building had "undisputed heritage values of regional significance" which contributed to the Whanganui economy.
Positioned at the southern entry to Victoria Ave, Mr van Voorthuysen said the Thain's building was highly visible to tourists visiting Durie Hill or crossing the Whanganui City Bridge and its demolition would affect "the fabric and symmetry" of the other Victorian-era masonry buildings in the neighbourhood.
Whanganui Mayor Hamish McDouall said the decision reinforced the importance of retaining Whanganui's heritage buildings.
"We are very pleased Mr van Voorthuysen has validated our heritage-led approach to city centre regeneration. Demolishing the Thain's Building would have caused irreversible damage to our status as a town known for its unique heritage," he said.
Karantze Holdings representative, property consultant Noel Mouldey, said the owners were devastated by the decision.
"They're distraught, disappointed but not overly surprised because all along we've known we were up against the district plan. However, that's not answering the dilemma that the owners have got that, that they cannot afford to earthquake-strengthen the building."
Mr Mouldey said the Thain's building only meets 5 percent of new building standard and government legislation requires owners of properties below 34 percent to earthquake strengthen or demolish them.
"However, resource consent's application for demolition has been declined so the owners find themselves between a rock and a hard place," he said.
Mr Mouldey said the decision would have owners of heritage buildings around the country shaking in their boots.
"Whanganui has a huge propensity of earthquake prone heritage buildings -- somewhere between 300 and 400 buildings some people say.
"Those owners would've sat back looking to see what was going to happen at this hearing, hoping of course it didn't go against the owner, which it did.
"So I can see this problem continuing now for the next five to 10 years. It's going to be a major issue for Whanganui and other areas where there's a propensity of heritage buildings like Ōamaru and so on."
Mr Mouldey said the owners of Thain's supported the retention of viable heritage buildings, but that the council needed to step up if it wanted to save buildings such as theirs.
"We see an obligation on the community. If the community wants to keep a building, the community needs to come to the party. If the council believes Thain's can be financially viable they've got to prove that it can be and we don't think they'd be successful in trying to do so."
Mr McDouall said submitters at the hearing had demonstrated that there were ways to preserve and re-use heritage buildings and there were still options to explore before demolition should be considered.
He said the council was committed to working with building owners to find innovative ways to strengthen, adapt and reuse heritage buildings.
Karantze Holdings can appeal the decision to the Environment Court but Mr Mouldey said the cost of doing so was prohibitive and unlikely they would do so.
About the Thain's Building:
- Built in 1907/1908 by Nicholas Meuli.
- Used by James Thain and Co to sell household goods and agricultural supplies.
- Situated on the corner of Victoria Avenue and Taupō Quay.
- Listed as a 'Class B' heritage "item" in the Whanganui District Plan, meaning it has high heritage values at a regional or local level.
- Karantze Holdings has owned the building since 1984 and has leased it for retail and office space.