A city committee chose to preserve heritage over pursuing a new hotel Tuesday.

The city’s property and development committee heard a pitch to demolish and replace the Fortune Block (home to the iconic Times Change(d) music club), MacDonald Block and Winnipeg Hotel buildings on south Main Street and replace them with a $35-million development centred around a hotel.

Fortune Block owner George Landes said the structure, built in 1882, has deteriorated beyond repair, with its second and third floor closed for more than 45 years.

Landes had entered a tentative agreement for the hotel proposal.

“It’s not economically feasible to try and save these buildings and there’s a proposal for a terrific new project that I feel would be really good for the city,” he said.

But the committee opted to place the buildings on the city’s historical resources list instead, a move that will prevent the demolition required for that extended-stay, 150-room hotel from a “major international brand.”

Hotel proponent Harry Christakis said the historical designation, if finalized, would effectively kill the redevelopment.

“Times do change. Cities are organic. They evolve and transform and, hopefully, for the better,” said Christakis.

The hotel proponents estimate it would cost more than $17 million just to renovate the existing buildings, which they don’t consider economically viable.

The committee also heard another idea for the property.

John Pollard, of Pollard Banknote, said he’d like to renovate the Fortune Block and MacDonald Block, while preserving historic features and keeping the Times Change(d). The Fortune Block’s upper floors would become office space, while the MacDonald Block could offer residential space or other uses, he said.

“We hope to preserve (the buildings) as much as possible,” he said. “We’re prepared to do this on the basis that we don’t really make a great return.”

Pollard’s plan doesn’t include the Winnipeg Hotel.

Cindy Tugwell, executive director of Heritage Winnipeg, urged the committee not to base its decision about the buildings’ historic merit on economics alone.

“Is heritage preservation slow? Yes. Do you always get your money immediately in the return? No. It’s about doing the right thing,” said Tugwell.

Coun. John Orlikow (River Heights-Fort Garry), who chairs the committee, stressed Tuesday’s decision doesn’t guarantee the demise of either idea.

Orlikow noted that neither pitch has progressed to the point of a formal proposal before council. And since council could remove a heritage designation in the future, demolition isn’t ruled out permanently if other options fail.

The committee’s decision also requires full council approval, since the buildings’ current owners oppose it.

joyanne.pursaga@sunmedia.ca

Twitter: @pursagawpgsun