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Demolition began Monday in the heart of the Sugar House business district where a developer plans an office building, condos and new retail space.

Workers using heavy equipment began tearing down structures at the corner of 2100 South and 1100 East that included the former locales of the Blue Boutique, Sugarhouse Coffee and other small businesses. Demolition generally followed a path along Highland Drive (1100 East) between 2100 South and about 2150 South.

Developer Craig Mecham said he did not know how long the demolition process would take but guessed that "it won't take long. They're pretty dilapidated."

Mecham said his development company still is seeking city building permits for construction that is proposed to include a six-story office building, a six-story condominium project and 45,000 square feet of ground-level retail space.

The project had created frustration among some city officials and preservationists who wanted some of the old buildings saved. Mecham has argued that he will be replacing them with something more appealing.

Lynne Olson, a 35-year resident and former member of the Sugar House Community Council, said she and others had hoped to create a historic district and restore some of the buildings.

"It's tremendously sad," she said Monday. "It's heartbreaking in some respects."

Neighborhood activists have been able to save an object from the area that will find a new home during redevelopment of the area known as the Granite Block, a concrete "compass" in the sidewalk along 1100 East. The community council has approved funds to have it cut out and stored before it is reinstalled somewhere in the block.

"It's one of the area's icons," said Olson.

On another area of the block where the former Granite Furniture operation now stands, the Red Mountain Retail Group of Santa Ana, Calif., has plans for a retail and residential project fronting mainly McClelland Street (1040 East), from 2100 South to Sugarmont Drive (2225 South). Construction is expected to start in the first quarter and take 18 months to two years to complete.