Auckland Council has squandered public funds buying the 1885 Wong Doo building in Hobson St for partial preservation, says heritage campaigner Allan Matson.
Mr Matson, who has been trying to save the two-storey, masonry building for eight years, said a 14-level retail and apartment development on the site was a dreadful architectural outcome for the city.
Mayor Len Brown last week announced the Wong Doo building and two mid-19th century worker cottages at Airedale St as the first recipients of the council's built heritage acquisition fund, which stands at $16 million.
The purchase prices are confidential.
The exterior facade of the Wong Doo building, on the corner of Hobson and Cook Sts, will be fully restored, but half of the building will serve as the first two floors of the new development - a move described as facadism by Mr Matson.