AUBURN - Once considered the store of downtown, Kalet's Department Store since has become its central eyesore.

The Auburn City Council will discuss applying for a Restore New York grant that would provide funding to demolish the three-story building on State Street.

The council's Thursday meeting will start with a public hearing pertaining to the grant application. The city is asking for $1.5 million for the demolition of Kalet's Department Store and the continued restoration of Schine Theater.

One issue is whether the city could strike gold twice in a row. Matteo Bartolotta's proposal for refurbishing a piano factory into condominiums was well received last year. The Restore New York program awarded him $1.8 million for the Logan Street project. It is unclear if that affects the city's chances this year.

Demolition for Kalet's would cost more than $100,000, but asbestos abatement would more than double that figure.

Capital Projects and Grants Director Michael Long declares himself as a preservationist but said losing the building wouldn't be “the last straw.” Demolition is necessary at times when the building is past the point of no return, he said.

Some people don't want to see the 21,120-square-foot building razed, citing the impact on State Street. If the building was brought down, the two neighboring structures would have to be stabilized.

“You've got to get the right person with the right approach and the right dollars,” Long said of restoring the structure.

The city marketed the property to developers, many who have expressed disbelief in the amount of work that it would need. The cost of renovations surpass the expense of simply constructing another building.

Auburn took the former retail store for back taxes in the mid-1990s. It has remained vacant for more than two decades.

“My personal view is I don't see it being renovated,” councilor William Graney said. “Economically, I don't see it being feasible to redo this.”

Developers have joked with him they would take the structure off the city's hands if the city gave them $200,000 when they see the amount of disrepair the once grand building has fallen into, Graney said.

Over the years, people with different ventures have toured the facility trying to image a gaming buildings, a doctor's office and a retail store, each overwhelmed with the amount of work the building needs and lack of nearby parking.

Five years ago, planners deemed parking constraints a major negative selling point for the building, and installed a street down the middle of State Street Mall to add parking spots. Also during this time, the city used federal money to stabilize the roof, but a section of the roof still opens to the sky, creating a passage way for pigeons. A dead bird lies near the former display case, which contains the only decoration still visible, an oval of velvet red material.

During that project, the contractor also removed asbestos materials, replaced a new floor structure on the second story, the first floor framing was reconstructed, new water and sewer lines were run to the building.

Now, the ground story's floor is eaten away in some spots marked with orange cones. Bits of building material hangs from the ceiling along with utilities' ducts nearly touching the floor with piping dangling out. Feathers and debris blanket the ground.

The building hardly contains the Art Deco touches that once graced its walls and ceilings.

“Right now, it's hard to see through this. It's an overwhelming piece of property,” he said.

Graney would like to see another building or parking in the place of the old structure. He doesn't believe there's hope for renovations.

If the city does receive the money to demolish, the city could just sell the lot.

“There comes a point when you walk over a dollar to pick up a dime,” Graney said.

Staff writer Jessica Soule can be reached at 253-5311 ext. 267 or jessica.soule@lee.net