SOUTH PORTLAND – It will now cost a lot less to tear down a building in South Portland, thanks to a 4-3 decision of the City Council on Monday.

Since 1966, the permit fee tied to demolition of existing structures in South Portland has been $15 per $1,000 of assessed value. Given the current tax rate in the city of $16.70 per $1,000 of valuation, anyone seeking to tear down a building has had to pay nearly a full annual tax bill for the privilege. For example, if someone wanted to tear down the median home, assessed at $200,000, in order to replace it with a new building or other development project, he or she would have been required to shell out $3,000 before pulling a single nail.

The concern, said City Manager Jim Gailey, was that the “exorbitant fee could deter owners from pursuing desirable redevelopment teardowns.”

Additionally, some, like Mayor Jerry Jalbert, said the city was guilty of “double dipping,” because it charges the same fee to erect a building, having hiked the building permit fee from $5 to $15 per $1,000 of valuation in 2006.

“To have to pay when you tear something down, and then again to put something back up, that doesn’t seem right to me,” he said.

Now, that same project will cost just $50 for principal structures and $25 for accessory buildings, a fee Gailey said is “more in line with the average amount of staff time required to process demolition permit applications.”

However, not everyone on the council agreed. Tom Blake, in particular, expressed concern on three fronts – that the change will cost the city significant revenue, that it could hasten the loss of historic buildings, and that the change was never fully vetted by the council.

“This is not a minor reduction, this is pretty much an elimination,” he said. “Somewhere, we have to make that revenue up. General Growth Properties, which owns the Maine Mall, could now tear down that building for just $50.

According to Gailey, South Portland issued 16 demolition permits in 2013, clearing $19,720 in fees. Those same permits would generate, at most, $800.

Blake also pointed to a recent presentation to the council by Greater Portland Landmarks(GPL), which last fall added the entire city to its annual “Places in Peril” list. The group has proposed working with the city, the South Portland Historical Society, and a new arts commission being hatched by Assistant City Manager Jon Jennings, to conduct a survey of South Portland buildings with an eye toward crafting a historic preservation ordinance.

“Here we are without even talking about what GPL put on the table, where we are making it easier to demolish the architectural character of our community. We’ve been publically criticized because we are not paying attention to what we have. Now, we are allowing that destruction to occur for just $25 or $50.”

As an example, Blake pointed to the former St. John the Evengelist Church on Main Street, recently purchased by Massachusetts-based Cafua Management and due to be torn down in favor of a Dunkin’ Donuts.

“By passing this ordinance, we are making it even easier for that building to come down,” said Blake. “Many, many times we have seen beautiful pieces of property in this community disappear with nothing done. To me, it is a slap in the face to Greater Portland Landmarks to have them plead to us to do something and before we even discuss what we’re going to do, we make it easier to demolish.”