Click the building. Click the red "CANCEL" sign (Red circle with a red line going through it, similar to the ones you see on the NO PARKING signs.)
Then if you have dynamite click "Completely Demolish" to instantlydemolish the building completely. If you don't have dynamite hit "Demolish by one level" to demolish the building by 1 level at a time, but it is not instant (this way will also give you a bit of resources, while dynamite will not)






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