Aberdeen council chiefs say taking on the old John Lewis building would just leave them paying millions of pounds to knock it down.
It emerged at the weekend that the high street giant is considering "gifting" Norco House to the local authority.
Politicians campaigning for the handover said it would be a "gesture of goodwill" following the devastating closure of the store last year.
Co-leader Ian Yuill has faced a backlash from opposition councillors since ruling out the idea.
But the Lib Dem politician is sticking to his guns.
He tells the Press and Journal today that the only option for the George Street building is flattening it at huge public expense.
No sense
Mr Yuill said: "It makes absolutely no sense for the council to take on a building with such significant liabilities.
"It wouldn't be free to the council when you consider the non-domestic rates bill that we would inherit.
"The only thing that could be done would be to knock it down, and that would cost millions.
"All this would require the council borrowing even more money."
Mr Yuill suggested a more fitting "gift" would be John Lewis paying to clear the site before handing it over. He stressed that he was speaking for the ruling Lib Dem/SNP coalition.
One local SNP politician who has been pressing John Lewis to hand over the building is Aberdeen Central MSP Kevin Stewart.
Transformational
He said the gesture "could lead to quite transformational change in the heart of Aberdeen's city centre".
Mr Stewart told store chiefs: "And it would go some way in giving back to the people of Aberdeen."
The P&J says unrest is mounting among opposition councillors desperate to see the building once again become an asset to the city.
Independent councillor Marie Boulton insists demolition is far from the "only" option.
And, listing other possible uses for Norco House, she said the council should "absolutely" take the chance to secure the building for free.
She said: "If we could secure the purpose for the John Lewis building and John Lewis were prepared to 'gift' it to Aberdeen City Council, we absolutely should take it."
Real hope
Ms Boulton's "real hope" for the space is that John Lewis could be tempted to reopen the ground floor as a new Waitrose supermarket.
But other options she would encourage the council to explore would be speaking to Robert Gordon University about turning it into a base for Gray's School of Art.
Ms Boulton also stressed the potential benefits of linking with the Natural History Museum to display a treasure trove of artefacts already in the possession of Aberdeen University.
Sandra Macdonald, who leads Aberdeen's Labour group, criticised the "premature" rejection of an offer not yet formally tabled.
She said: "The future of the George Street area matters - not just to those who live, work and have businesses there.
"George Street really matters to the city.
"It is premature for the administration to turn its back on a potential purchase without looking into what might be possible."
She said leaving the empty building as a "blot on George Street" would be the "real mistake".