Although the new owners had originally agreed to preserve the Seventh Floor, they eventually determined that its preservation and restoration was not financially feasible. They applied for a demolition permit to convert the entire floor to office accommodation. After a lengthy court battle with the City of Toronto, the Court of Appeal for Ontario ruled in 1986 that the 1975 designation of the building under the "Ontario Heritage Act" protected the Seventh Floor from demolition. (See "Re Toronto College Street Centre Ltd. and City of Toronto et al." (1986), 56 O.R. (2d) 522 (Ont. C.A.) Despite several changes in building ownership, and the efforts of local heritage advocates, the Seventh Floor was sealed off for many years and allowed to deteriorate. Although it was protected by law, owners had no legal obligation to use or restore it. After an extensive renovation program to restore the original art deco architecture, the space reopened in 2003 as The Carlu, an event and convention venue.