The owners say it’ll cost them up to $5.7 million to restore and preserve the building.

AUSTIN, Texas — The owners of an East Austin property are fighting the city over a historic zoning designation.

In a lawsuit filed on Friday, the owners of a 100-year-old building at East 12th and Comal streets say the city ignored their wishes when approving the historic designation last year.

The property has been vacant, but those who supported preserving it said it had historical benefits. The building was once a barbershop, a saloon and more. Records indicate the building may have been sitting along East 12th and Comal streets since 1889.

The owners filed for a demolition permit last year after structural engineers deemed it a hazard.

In their lawsuit, owners say it’s been rundown for years, and the city had a chance to give it a historic designation for almost eight years but didn’t. Now, they say it’ll cost them up to $5.7 million to restore and preserve it.

In their lawsuit, the owners wrote, “‘Historic designation,’ especially without sufficient justification, is not intended to be a detour for the city to strip a property owner of their property value under the guise of preservation without just compensation.”

Last year, Dallas developer Eureka Holdings applied to demolish the building, which led to the Austin Historic Landmark Commission signing off on a recommendation to make it a landmark.

Preservation Austin explained the building’s history, saying its significance was “undeniable.” Preservation Austin accused Eureka of having no plans to preserve “the history of the Black community that built and shaped East Austin.”

KVUE reached out to the city for a response. A spokesperson said the city hasn’t been served the lawsuit yet but will review it and respond appropriately.

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