A Saskatoon man's plan to build a residential skyscraper on top of a historic downtown church has been dealt a major setback.

A committee of the Saskatchewan Heritage Foundation has recommended to city councillors that the Third Avenue United Church building on Third Avenue be protected as a municipal heritage building.

That's despite an appeal against that status by John Orr, who had plans to build a residential highrise, including parking, directly on top of the more-than-century-old English Gothic church.

An alternate view of the design. (John Orr)

Orr told CBC News the recommendation will condemn the church to become a derelict building because the new status will hinder any redevelopment of it.

In its decision, the committee wrote that "Orr explained that he was told by banks and other lenders that they would not lend him money for construction if the church had heritage designation."

Orr's plans called for "as many [floors] as we could go," he said.

"We've done structural analysis to as high as the tallest building in Saskatoon and structurally our system worked with what we were doing around the church," he said.

Design 'a little unsettling': church

Kenneth Holmes, the chair of the church's 60-to-80-member congregation, was there in July when Orr unveiled some of his designs at a hearing.

"It was a little unsettling," said Holmes. "We were not too impressed with it. We were mainly worried he was going to hurt the building."

The church lot's current owner put it up for sale in June. (Guy Quenneville/CBC News)

The City of Saskatoon has voiced its support for the church's heritage status. The site boasts, among other things: exterior trimmings made of Tyndall stone from Winnipeg and a 2,000-pipe Casavant organ. Its acoustics make the church a popular venue for concerts.

The review and appeals committee ultimately recommended the designation "to assure that the character-defining elements are preserved."

"Designation should be put on the property prior to any redevelopment or sale in order to provide clear direction through any changes in ownership," wrote Julie Mushynsky, one of three members of the committee.

City councillors will discuss the recommendation Monday. After that, they have to give a bylaw two more readings before the heritage status becomes official.

The interior of the church, a popular spot for concerts. (Facebook)

Dale Anderson, a co-owner of the church lot (whose ownership is being contested in court by Orr), is not eager to see council proceed quickly with those readings.

He's hopeful he'll be able to close a deal to sell the lot within the next week to a local group. He wouldn't say who, but said it's a group that wants to see the building named a heritage site.

"If this deal doesn't finalize, that means I have to go find another buyer," he said.

Once the municipal heritage designation becomes official, "It narrows it down a lot for any potential purchaser to buy the property," he said.

"I do not want to see that building turned. I can't afford to take the loss. And I will not take the loss ... I will not."