A Winnipeg businessman who wants to demolish one of the city's oldest buildings to make way for a boutique hotel, bar and restaurant received good news Tuesday: a city committee rescinded a previous heritage designation on the site.

Ken Zaifman, owner of the St. Charles Hotel, wants to replace the Albert Street Business Block, at 38 to 44½ Albert St., with a surface parking lot and a patio for the St. Charles Hotel, which he is renovating.

Part of the building at 44 Albert St. was built in 1878. A storefront was added in the mid-1920s. (CBC)

Part of the Business Block, located near Albert Street and Notre Dame Avenue, was constructed in 1877 and is considered one of the oldest residential buildings in the city. An adjacent storefront was added in the mid-1920s.

Last year, a city committee put the building on the city's conservation list, arguing it was "part of a significant streetscape that provides continuity and character to the Exchange District," which has been designated a national historic site.

The committee also said Zaifman's plan for a "curb cut" to enter the parking lot would interfere with the heritage character of the neighbourhood.

Since then, Zaifman has significantly changed his plan for the site. Access to the parking lot will now be off a back lane, and the heritage of the old building would be commemorated through pictures on the redeveloped site.

Because of that, Heritage Winnipeg, the Exchange District Business Improvement Zone and Parks Canada told the city's property and development committee on Tuesday that they now support Zaifman's project.

The committee agreed, voting to remove the buildings from the heritage list.

The move clears the Business Block for demolition, although not until Zaifman has done significant work on the St. Charles Hotel.

Tuesday's committee decision must also be endorsed by city council, which is expected to happen within the next month.