The "notice to fix" was issued by the Dunedin City Council on Christmas Eve, and gave tenants at 386 Princes St - including staff at the Slice of Heaven second-hand shop upstairs - 14 days to pack their possessions and leave.
The public would not be allowed to occupy or use the store until repairs were made.
Failure by the owners to make repairs could leave them facing a $200,000 fine, rising by $20,000 each day for continued non-compliance, the notice said.
The building - which used to house an auction room downstairs and had been home to Slice of Heaven for about 18 months - is one of four Christchurch-based developer Luke Dirkzwager, of Prista Apartments, wants demolished.
The controversial plan, which was the subject of a resource consent hearing last month, would result in the buildings from 372 to 392 Princes St, and one at 11 Stafford St, making way for a new five-storey retail and apartment complex.
The demolition plan has been opposed by members of the public and the New Zealand Historic Places Trust, which argued the loss of the pre-1900s buildings, and their facades, would have a significant impact on the townscape precinct.
Yesterday, a tenant of 386 Princes St - who would not give his name - said the building had been in poor condition for years, but only now were those occupying it being "bulldozed" to make way for development.
The tenant believed the building's owners had allowed it to deteriorate to the point they could proceed with their plans.
"They have known that for quite a few years. It's disgusting.
"They have leased the building out to us, no worries, and we have had our kids running around up there . . . and now it's convenient, they tell us to get out.
"We're shattered," the tenant said.
However, Mr Dirkzwager said when contacted he would have preferred to keep tenants in the building while he waited to hear if development plans were approved, but was forced to act following last month's resource consent hearings.
A preliminary engineering report, commissioned by his company but supported by a council peer-review, identified serious concerns with the building at 386 Princes St, which was dangerous and earthquake-prone.
That prompted hearing chairman Cr Colin Weatherall to briefly stop last month's proceedings and instruct Mr Dirkzwager to take the information contained in his engineer's report directly to council staff.
Yesterday, Mr Dirkzwager said that meant he simply "had no choice" but to act, and once the information was presented to council staff the "notice to fix" was issued.
"Any developer prefers to have a tenant in than out. It's not done by choice. It's done by the demand of the council. We had no choice," he said.
Council chief building control officer Neil McLeod, who signed the notice to fix, is on holiday and could not be reached for comment yesterday, and council development services manager Kevin Thompson declined to comment.
Cr Weatherall said when contacted the hearing - adjourned after two days - was expected to resume late next month, and it was likely more information would be requested.
That would include a more detailed report into the structural integrity of the buildings, which would also be peer-reviewed, he said.
