Lawrence’s first downtown condominium project has run into a regulatory roadblock.

The city’s Historic Resources Commission has ruled that the building proposed for the vacant lot south of Borders Books & Music wouldn’t fit in with historical buildings near the site at the northeast corner of Eighth and New Hampshire streets.

“They had issues with the height, predominantly,” said Linda Finger, planning director for Lawrence and Douglas County. “It changes the viewscape from the Eldridge. The building is tall enough that you no longer would have the same view from the upper floor of the hotel.”

Plans call for a 100,000-square-foot building that would house 32 loft-style condominiums, retail stores, offices and a 52-space underground parking garage,

The historic commission last week ruled the building, which would have five stories on its south end and four on its north end, would encroach upon the environs of the Eldridge Hotel, 701 Mass., and The News Center, 645 N.H, both of which are on the National Register of Historic Places. The News Center houses the newsroom operations of the Journal-World.

The proposed building would be 74 feet tall, Finger said, taller than several buildings on Massachusetts Street.

“It would definitely create a new element,” she said. “It creates a verticality that has maybe only happened in two other places, the Eldridge and the US Bank building.”

The Eldridge Hotel is 63 feet tall, while the US Bank building is 77 feet tall.

The ruling by the Historic Resources Commission means the city commission will become involved in the issue. Project developer Bo Harris, chief executive of Lawrence’s Harris Construction Co., said he would ask city commissioners to rule the building would not harm the environs of the nearby historic structures. The city commission is expected to discuss the issue in July.

Harris said the proposed height of the building is a critical part of the design. Reducing the height of the building could kill the project.

“It is a deal breaker in that without any public subsidy of any kind, like a TIF (tax increment financing) for instance, this is the scale that we need to be at to be financially feasible,” Harris said.

The project needs to be large because both he and city officials have a strong desire for the building to contain a mix of uses.

“By the time we have the first floor be retail, and the second floor office use, we have to make room for the residential,” Harris said.

He’ll try to convince city commissioners that constructing taller buildings in downtown is becoming a necessity.

“This is an issue that has to be dealt with or our downtown will be threatened by development in other areas of town,” Harris said. “There is only so much space in downtown. If we think it is a good place for people to live, work and play, then we have to do something to increase density.”

Harris said he was “guardedly optimistic” that city officials would allow the project to proceed as planned because he has received several positive comments about the concept of the project.

The development would be the first downtown project to house condominiums, which are different than apartments because the occupants own the space instead of rent it.

The project would include 32 loft style condominiums, ranging in size from 950 square feet to 2,500 square feet. Selling prices for the units have not been set.

The ground floor of the project also would house a bank, the name of which hasn’t been released.

Harris would like to start the project this summer and have it completed by summer 2004.