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Restore Oregon has dropped its appeal challenging plans for a major downtown hotel project, but the historic preservation group hasn’t given up its bid to save two century-plus-old buildings.

Developers Jack Onder and Jeff Arthur of T & T Development want to build a 20-story, 175,000-square-foot hotel on Southwest Salmon Street between Second and Third avenues.

The site includes the Ancient Order of United Workmen Temple at 915 S.W. Second Ave. The 124-year-old building has strong historic and architectural merit, preservationists say. The 110-year-old Hotel Albion 鈥� home of the Lotus Cardroom and Caf茅 鈥� also sits on the property.

But after the developers agreed to delay for 120 days their planned demolition of the buildings, Restore Oregon aborted its appeal to the Oregon Land Use Board of Appeals.

Peggy Moretti, executive director of Restore Oregon, said the group opted to drop its appeal to 鈥渆xplore (with the developers) alternative ideas to demolition.鈥� She said the developers could take advantage of tax credits to rehabilitate the Ancient Order of United Workmen Temple.

鈥淩estore Oregon is not of the mindset that thinks every single old building has to be saved,鈥� she said 鈥淲e know there has to be accommodation for growth.鈥�

But the Ancient Order of United Workmen Temple is 鈥渜uite significant,鈥� Moretti said.

鈥淥ur feeling is if this building comes down, it would be the most significant loss for Portland in over a decade,鈥� she said.

Neither building targeted for demolition is listed on the National Register of Historic Places. Restore Oregon protested the removal of the buildings from the city’s Historic Resources Inventory.

T & T Development is moving ahead with its project, which also calls for 175,000 square feet of office space. The company on Monday applied for design review of plans for the project’s hotel portion.

T & T Development said in a statement that it appreciates Restore Oregon’s withdrawal of its legal appeal. The company also said that it hopes to preserve old bars and other Lotus Cardroom and Caf茅 features by incorporating them into the hotel.