The owner of the derelict Canadian Hotel in Hamilton still hopes a redeveloper will save it but has not ruled out demolition.

Thomas Powell of Stonehaven Development Company Ltd was speaking after the Corporation of Hamilton placed barricades around the Reid Street property amid public safety concerns.

City engineer Patrick Cooper said the integrity of the building has been “severely compromised” over the years due to its derelict condition.

Asked whether he had considered demolition, Mr Powell told The Royal Gazette: “Yes I have. My first hope would be to have it redeveloped. It is a big project. It takes a lot of time to get parties interested and for parties to get the financing.

“Look at the projects we have going on now, they keep falling short of financing.”

The corporation has installed barricades on Reid Street restricting access in front of the building, while the sidewalk in the nearby area has been closed. The far right, westbound turning lane, is not in use.

Lizz Pimentel, executive director and owner of neighbouring business In Motion School of Dance, said the building had not posed any serious concerns.

Ms Pimentel said: “It is just one of those things that exists that we never put too much thought into. We always wonder whether they are going to redevelop.

“It hasn’t had an impact on us. We are not dependent on that corner of the street.

“There are a couple of businesses there but it is a quiet corner. We did let parents know that there are barricades there and just to avoid that part of the street.”

The corporation said it was uncertain of the future of the property, adding that the barricades would remain in place “until such time as the property is redeveloped”.

The building control department of the Government’s planning department would be able to step in to order demolition if the building did become too much of a safety hazard.

A department spokeswoman said: “Government departments are working with the owner of the former Canadian Hotel property and the CoH to ensure public safety matters are addressed. While those discussions occur, safety barriers have been installed as a proactive measure.”

Mr Powell has sought investment in the building for several years with no success.

It served as a boarding house for many years until closing in 2006 after Mr Powell found himself facing a $1.5 million bill to renovate and insure the premises.

It has since fallen in to dereliction and was further damaged by a fire in 2012.

•Update: This article was amended to include the response from the building control department