KITCHENER — Council voted 7-3 Monday against protecting the distinctive concrete facade of the Sears building with a heritage designation.

Building owner Cadillac Fairview wants to demolish the facade and part of the building in a major redevelopment of Fairview Park mall. Finley McEwen, Cadillac Fairview's senior vice president of development, urged council not to designate the building. The 53-year-old Sears building, with its distinctive facade of ribbed, precast concrete, was built in the Kennedy-era International style and is locally unique.

The heritage designation "would essentially render the property undevelopable," McEwen said. "It would essentially tie our hand and prevent a one-in-50-year redevelopment opportunity from progressing."

He said the current building has a number of problems: the lack of windows make it undesirable office space; the precast concrete doesn't insulate well, and the caulking contains toxins, he said. "The Sears building is not functional in its current form. It has not stood the test of time."

The harsh reality facing the retail sector, when consumers are increasingly turning to online shopping, ultimately swayed many councillors.

"We know that traditional malls are dying," said Coun. Scott Davey, rattling off many brands now gone: Sears, Eatons, Zellers, Toys R Us.

Designation would place too strict a limit on the redevelopment of the mall, said Coun. Paul Singh. "It can't always be an all or nothing proposition."

Others, such as Coun Yvonne Fernandes disagreed. "Cadillac Fairview has very deep pockets and I think you could probably make this an outstanding example of mixing mid-century modern architecture and new and innovative construction, and people will look at this and think, 'Wow.' "

Earlier this month, Kitchener's heritage committee called for the iconic 1965 building to be protected with a heritage designation. Designation would prevent any alterations to the building's heritage elements, and any demolition, without council approval.

The first phase of redevelopment, adding four storeys of office space and two standalone restaurants, represents a $74-million investment, he said. Future phases to add office and residential would be worth $360 million. Ultimately, 5,000 to 10,000 people would live or work there, he said.

The company, one of the largest real estate organizations in North America, says the original concrete facade doesn't fit with modern retail ideas, which call for more open facades with windows and shopfronts, rather than the "blank wall" of the Sears building.

The plan would demolish almost the entire facade of the Sears building, but preserve a section of it along a walkway on the north side of the building. Cadillac Fairview has said it would be willing to save a larger, more prominent section of the original facade.

The redevelopment gives a nod to the area's industrial past with a tall brick chimney and a replica of an old-fashioned water tower. But heritage advocates argued it makes more sense to preserve the area's original architecture.

"Why build a fake brick-and-beam building when we already have an authentic Mid-century modern one?" argued Sandra Parks, a volunteer with the local branch of the Architectural Conservancy of Ontario. She asked council to send a strong message to the owner to come up with a design that preserves more of the original fabric of the building.

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The committee's call to designate the building went against the advice of the city's heritage staff. Heritage planners agree the building has heritage significance, but said the city could likely save more of the building's heritage by working with the owner rather than forcing designation on an unwilling owner.