Would a project still qualify for Option 1 Historic Building Reuse if it has a local historic designation (requiring maintenance of the building exterior components)?  The interior nonstructural elements are being removed and there will some demolition.  All demolition work will go through approval of the local historic preservation review board.  

The following two lines  suggest it would not:

"Maintain the existing building structure, envelope, and interior nonstructural elements of a historic building"

"Do not demolish any part of a historic building or contributing building in a historic district unless it is deemed structurally unsound or hazardous." 

But this would suggest it would:

"For buildings listed locally, approval of any demolition must be granted by the local historic preservation review board. "

Any insights on whether this qualifies would be greatly appreciated, thanks.