A now-rejected plan for renovating and operating the Roanoke City Market Building recommends shifting the three-story historic building away from its current function as a food court toward a more comprehensive concept that emphasizes retail products and a classic "market" experience.

But city officials believe the concept moves too far from the current market building setup, and with an estimated $7 million price tag, it's too much of a risk.

The proposal, submitted in July by a group of nearly 40 businesspeople known as the Coalition for the Roanoke City Market, would remove most of the mezzanine level of the market, renovate the unused upper floor for dinners and conferences, and create stall and retail space for vendors both inside and outside the 88-year-old structure.

The proposal was rejected Tuesday by a unanimous vote of the Roanoke City Council, which instructed city officials to draft a new request for proposals to redevelop and manage the iconic building.

It's unclear whether the coalition will resubmit its proposal, said Bill Carder, executive director of Downtown Roanoke Inc., which helped prepare the proposal for the coalition.

"At this point in time, the coalition is pretty stunned," Carder said. "We're going to have to get together as a group again and make that decision when we see the RFP. ... I'm sort of a spokesperson, but that decision's not mine."

Roanoke City Manager Darlene Burcham told council members -- most of whom had not read the full proposal -- that the coalition's response did not meet the "development principles" outlined in the city's initial request.

The plan proposes a radical makeover, shrinking permanent vendor stalls to allow "racetrack circulation" between three rows of stalls that would sell not only food but produce, flowers, cheese, baked goods, coffee and other products.

The perimeter of the first floor would replace much of the existing wall with doors to create "the feeling of an open-air arcade." Restaurants or retail space would anchor three of the corners of the building.

The mezzanine would, with the exception of the restrooms and balconies at either end of the building, be removed. The second floor would be retrofitted as an event space, complete with a catering kitchen, a lobby and new restrooms.

Assistant City Manager Brian Townsend said the committee that evaluated the proposal felt the proposal was "too radical a change."

He argued that the proposal essentially converts the market building into a high-end grocery store, similar to the Ukrop's, Fresh Market and Kroger stores found just down Franklin Road. Although Carder said a consultant's study said the Roanoke market would easily support this concept, Townsend argued that it was too risky -- especially with the coalition asking for the city to cover the entire $6.9 million cost of renovation up front.

The proposal also suggests the city make a $300,000 investment for design and development and pay $50,000 per year into a capital expenditure reserve fund.

Carder said that historic and new market tax credits could reimburse about 50 percent of that cost.

He said the coalition had obtained a $243,000 federal grant and could do additional fundraising to help.

Townsend said those things would do nothing to help with the investment on the front end, which city officials had hoped to see as a sign of the coalition's commitment.

"This proposal has none of that," Townsend said.

Further, Townsend said that many of the products suggested in the proposal -- especially produce, baked goods and coffee -- can be purchased at businesses within a block of the market building.

"Are we going to cannibalize the activity we've already got downtown by putting all this in the market building and replicating what we've already got just down the street?" Townsend said.

Carder said the proposal doesn't seek to replicate but instead work with the outdoor farmers market to provide retail products year-round.

"It's not repeating anything we have, it's enhancing what we have and adding more," Carder said.

He added that a consultant's report "says this market will bring in people from the region. It's designed to be a regional destination."

Another sticking point is the protection of the market building's existing vendors.

The proposal suggests major changes, starting with the shift in the layout of vendor stalls.

It recommends that "most vendors should revisit their concepts to adapt a more market-like appearance," including an increased emphasis on selling retail products.

Townsend doesn't buy that, arguing it would put vendors in direct competition with Kroger, Ukrop's and Fresh Market.

Townsend said that while there's room for improvement of the market building, "this concept is going way beyond what I think our downtown and our market will support."