A heritage advocate lamented the demolition of the dwelling in Grant St as "awful news" and said the approval showed the council’s planning rules were deficient.
The council granted resource consent to Grant Street Ltd to demolish the "character-contributing building" and develop 11 three-storey multi-room residential units for short-term accommodation at 9 and 9A Grant St.
Earthworks are under way, and Airbnb townhouses at the address are listed on Trade Me with an asking price of $676,000.
The council’s heritage adviser had noted the dwelling was associated with "pre-1900 human activity" and an archaeological authority would be required prior to demolition, the consent stated.
While the dwelling was not identified on the Heritage New Zealand Pouhere Taonga list, the adviser considered the loss of any character-contributing element had the potential for "adverse effects on the established heritage values of the precinct".
"The heritage adviser does not support the demolition of the building and has previously recommended its retention."
The plans were revised, and while the adviser did not support the building’s demolition, the negative effect on the heritage streetscape had been reduced "to a tolerable level" and the consent was granted.
The front two units would incorporate design features found among other housing in the street, referencing the traditional form of a Victorian villa, which the adviser considered "sympathetic" to the heritage precinct.
"It just shows again that our planning rules are deficient."
Insufficient work had been done to research and list properties around the city for heritage protection, Ms Galer said.
Because the council had been too slow at recognising heritage as a major asset to the city, there could be "hundreds" of unlisted houses with heritage character out there.
While the council was to be commended for a decision last week to notify the public of a proposal to add up to 146 buildings to a heritage list, there was "still so much work to be done".
TGC Homes and Grant Street Ltd director George Hircus said the council had previously approved another resource consent by another applicant at the site.
The council’s urban design team also had "significant input" to satisfy themselves that the character of the street was maintained.
Six of the 11 homes had been sold, he said.
The home they had demolished was "basically at its end of life", Mr Hircus said.
"The floors were busted, the walls were busted, there was rot through all the timber, no insulation."
They were comfortable they had met "a really good balance" of protecting the streetscape while adding more homes to the CBD.
A council spokesman said while the building was character contributing, it was not a scheduled heritage building.
The second generation district plan allowed for the demolition of character-contributing buildings provided the heritage streetscape was maintained or enhanced, and the design of any replacement buildings made a positive contribution on the area’s amenity.
"In the case of 9 Grant St, the developer’s revised plans were deemed to reduce the negative impact on the heritage precinct to an acceptable level."
In addition to the proposed 146 buildings being added to the heritage schedule, the council also initiated a second plan change that would strengthen the second generation district plan’s heritage provisions — including policy and assessment guidelines around demolishing character contributing buildings, and would also consider how important historic buildings not yet on the schedule could be better protected.
Staff were also developing an implementation plan for the new heritage action plan that was due to be presented to council next year, the spokesman said.
