Christchurch developer Luke Dirkzwager has been seeking approval since 2008 to demolish 372-392 Princes St and replace the buildings with 15 apartments, with space for retailing on the ground floor.
Following a hearing in December, an interim decision was released by a Dunedin City Council hearings committee last month.
It indicated it was "of a mind" to approve his plans if his company, Prista Apartments, came up with a different design more in character with the precinct.
The alternative plans must be provided by July 1 and a final decision on the consent, followed by an appeal period, would follow.
Trish Saunders, of Dunedin, started a petition opposing the project, which attracted 260 signatures, and it was presented at the first hearing.
She is now collecting signatures again but this time she is fighting "demolition by neglect".
She would like a register of at-risk buildings to be established and to have penalties put in place for owners of buildings who kept them in a rundown state.
"They can use the poor state of the buildings as the reason to demolish them."
About 90% of the people she spoke to were supportive but she would not reveal how many had signed the petition, saying it was "irrelevant if it's a numbers game".
The loss of other buildings in the area - such as the Century Theatre - was concerning people, she said.
"I think there is growing awareness that buildings like the railway station are protected but these small buildings aren't.
"I think we've got to think about the streetscape in Dunedin, as well as the heritage."
It appeared the council was on the same wavelength as it set up a heritage buildings economic reuse steering group in January.
Cr Fliss Butcher said the group would help raise awareness about how heritage buildings could be made economically viable, rather than letting them "sit there and rot".
"I hope we can save some of these buildings."
She was not able to comment on those in Princes St.
