The Edgartown historic district commission Tuesday approved the demolition of a South Water street building, making way for plans for a new mixed-use building on the site.

The commission approved Eugene Courtney’s application to demolish the current building at 6 South Water street, which is about 70 years old and has insect and fungus rot, Mr. Courtney said.

Historic district commission chairman James Cisek said beyond the poor condition, the building, which is behind the Victorian Inn, also lacked historic significance. There were no public comments, and the commission unanimously approved the petition.

The commission delayed a decision about Mr. Courtney’s application to build a new mixed-use residential and commercial building on the site, waiting until their February meeting, when questions about architectural details can be answered.

In addition, plans for an 806-square-foot guest house at 117 North Water street were withdrawn after the commission read letters both in support and opposition to the house. The proposed guest house would have been elevated to meet state regulations for minimum height above water, which some abutters said would not fit in well in the neighborhood. In a letter, neighbors and abutters who were opposed to the project said the guest house would “change the neighborhood and the environment in a very fundamental way.”

Other abutters wrote letters supporting the project, but some commission members expressed their own doubts about the project and the precedent it would set for the neighborhood. In the end, architect Patrick Ahearn, speaking for client Townsend Morey Jr., withdrew the application, saying that he might resubmit plans to build a smaller boat storage building on the property.