Austin’s Historic Landmark Commission stymied a developer’s plan to demolish a century-old East Austin building at its regular meeting Wednesday, voting unanimously to recommend initiating historic zoning for the site.

Owner and real estate developer Eureka Holdings applied for a demolition permit for the structure at 1500 East 12th Street in July, triggering a city requirement that the commission consider its historic value before signing off. The city’s Preservation Office recommended initiating historic zoning of the building at the northeast corner of East 12th and Comal Streets rather than supporting its demolition.

The storefront has been a German grocery and beer hall as well as a Black barbershop and music venue. It’s also near the I.Q. Hurdle House and Southgate-Lewis House, two similarly storied structures that contribute to preserving the physical history of the corner. Preservation staff cited both as factors in its recommendation, maintaining that the building is an important part of the street’s historic fabric.

Discussion at the commission's August meeting included input from neighbors who spoke against its preservation, noting its recent reputation as a locus of illegal activities and lack of regular use for several years. The commission postponed the case until its first September meeting, where it ultimately moved forward with the recommendation after more discussion and additional public input arguing both in favor of and against its preservation.

Eureka purchased the building in 2016 and has received a number of code-enforcement citations for a lack of maintenance. The developer maintains that the property could be used more productively if the building were demolished but has not made public any plans for the site.

The Dallas-based company, which has amassed a huge portfolio on East 12th Street and in surrounding communities over the past several years, has drawn ire and frustration from some neighbors for failing to redevelop and neglecting its properties, code violations, unpermitted construction, failure to maintain its sites and structures, and using placeholder LP names.

The Planning Commission will take up the case next; if it signs off, the zoning will need a supermajority City Council vote for final approval due to the owner’s opposition.