The city shut its doors two years ago because it was losing money.

The plan was to demolish it and put up a hotel and conference center, but now the state says it won't cover demolition costs and the city doesn't have the six million dollars to do it.

Some local merchants are frustrated.

"We want something," said Gennaro Iamunno, Graffio Jewelers. "It's a waste of space for now. Its a dead place that could be revitalized."

New Haven's mayor says the city is committed to bringing down the coliseum.