The Delaware city planning department has continued working on plans for the demolition of the Delaware Hotel.

The city currently accepting bids for asbestos removal and demolition and an appraisal contract has been completed, city spokesman Lee Yoakum said.

The city plans to complete the bid and appraisal process by the end of November.

The city is using grant funds to demolish the 351 S. Sandusky St. hotel and redevelop the site for residential uses. The Housing and Economic Recovery Act of 2008, awarded $1,136,655 in grant funds to the city and the county.

An appraisal company has been selected to pinpoint the property’s value and should be finished by early November, Yoakum said. The $5,500 contract is with Frank Hinkle of the Robert Weiler Company.

If all items are completed on schedule, negotiations could begin with the property owner, Yoakum said.

A pre-bid meeting was held earlier this week with 21 applicants touring the hotel site, Yoakum said. Then, the companies can decide on submitting their bids, which are due by Oct. 30.

The demolition and asbestos removal is expected to cost between $500,000-$600,000. If the plans progress, residential property could be constructed on the “pad-ready” site by 2013.

Investigation continues in the July 25 Delaware Hotel fire that was ruled an arson by the Delaware fire and police departments and the Ohio Division of State Fire Marshal’s Office. The fire began in the vacant hotel’s bar.

Early last month, the Delaware Fire Department solicited photographs and videos of the hotel’s appearance before the blaze, which could provide information on interior materials and give investigators an understanding of the fire’s timeline.

“We received a nice turn out and a mixture of information,” city fire chief John Donahue said.

The information was sent to Building and Fire Research Laboratory, located at National Institute of Standards and Technology in Gaithersburg, Md.

The hotel has been vacant since September 2008.

mmackey@delgazette.com