The Dinkytown building housing Mesa Pizza and other businesses is safe for the time being.

The Minneapolis City Council voted 8-4 Friday to deny Doran Companies the demolition permit for 1319 Fourth St. SE until a historic designation study can determine if the business district is worth preserving.

The decision will delay Doran Companies’ plans to build a six-story, $25 million hotel near the University of Minnesota as the study could take months or even a year.

Doran Companies CEO Kelly Doran said the delay will cost him hundreds of thousands of dollars and could ultimately kill the project.

“Leaving things in limbo does not typically work in the real world,” Doran said. “The marketplace is a fluid thing, it’s a dynamic thing, and what works today may not work tomorrow.”

Should the study find that the property isn’t worth preserving, Doran Companies’ demolition permits must be granted, Minneapolis Assistant Attorney Erik Nilsson said.

Ward 3 Councilman Jacob Frey, who serves the area including Dinkytown, supported saving the building. He said the city needs to increase its high density, but at the right pace.

“We are voting just to give this some additional thought,” he said. “I think the thoughtful measure at this point in time would be to undergo additional study.”

The Marcy-Holmes Neighborhood Association has opposed the demolitions since Doran first proposed developing the property in August. President Cordelia Pierson said she was happy to see the city take historic significance seriously. 

“It underscores with developers and Dinkytown that history is important,” she said.

For more reaction on this decision and what it means for Dinkytown, pick up Monday’s Minnesota Daily.