Last year, the Dunedin City Council identified 146 buildings they believed needed to be added the heritage schedule, as part of proposed changes to the district plan.
This included the former hospital admissions block at 255 Great King St, built in the 1930s.
However, in a submission made last year, principal legal counsel Kirsty Shepherd submitted against the proposal on behalf of HNZ.
She argued it was critical health buildings were able to adapt to changing needs in a "cost-effective and efficient manner".
"In Dunedin, the proposed scheduling and protection afforded to a hospital in the middle of the current health precinct will create significant issues with the ability to make the best use of that site in future."
HNZ did not consider the building’s heritage values significant enough to be included on the list, she said.
"At this stage, given the above, it is considered that the costs associated with scheduling the building are not outweighed by the benefits of protecting any heritage values it may have."
Heritage New Zealand Pouhere Taonga (HNZPT) Southern director Christine Whybrew made a submission in support of all proposed schedule items being included on the heritage schedule.
In a second submission, Ms Shepherd said HNZ opposed the submission made by HNZPT and asked for the submission to be disallowed.
The building’s entire external envelope and central interior stair were nominated for protection.
The council’s heritage assessment said the building represented the evolution of health services in the mid 20th century.
"Designed by prominent Dunedin architectural partnership Mason and Wales, the Dunedin Hospital administration block has architectural, aesthetic, historical and social significance."
