Owner of iconic Philadelphia Melrose Diner reveals plans for new building with Action News

PHILADELPHIA (WPVI) -- A famed South Philadelphia diner will be demolished in a matter of weeks, according to its owner.

Melrose Diner, which sits on the triangle block of West Passyunk Avenue, Snyder Avenue, and 15th Street, has been an institution in the neighborhood since 1956.

Owner Michael Petrogiannis said while he plans to tear it down instead of a mixed-use six-story apartment building, a new version of Melrose Diner is part of the plan.

Still, neighbors were shocked that the iconic building is coming down.

"It was like a South Philly staple," said Cecelia Toppi.

"It's sad. It's like an icon disappearing. It's terrible," said Chuck Stewart, who's lived in the neighborhood his whole life. "My mom even worked here. This goes way back."

"My mom, when she was alive, loved the buttercream cakes that they had there. So we would always buy her cakes for holidays, birthdays, things of that nature," said Quinn Patton from Upper Darby.

On Friday, construction crews finished surrounding the block in fences to prepare for demolition.

The diner has been closed since last June when a kitchen fire forced it to shut down. Since then, its future has been in question until earlier this week, when Petrogiannis filed paperwork explaining his plan.

READ | Crews battle fire at iconic Melrose Diner in South Philadelphia

"We are working to reopen as quickly and safely as possible," said Melrose Diner on Monday.

"Since the fire happened, I decided to demolish the building and put the apartment above and put the Melrose Diner back on the ground floor again. That's my plan," he said.

In total, the building will be six stories. The first floor will include a new Melrose Diner and have room for other businesses too.

The following five floors will be residential, with a total of 94 apartments.

"I'm thinking I'm even going to name the building 'Melrose' also," said Petrogiannis.

He says he wants to make the new building a tribute to Melrose Diner. He plans on keeping several of the original signs and he's already preserved the clock that was inside the diner.

He says that will go into the new space. Still, neighbors can't believe it's changing.

"No. That's insane to me. No," said Toppi.

Petrogiannis estimated construction will take 18 months to two years.