The blighted Delaware Hotel will meet its demise soon, an exciting prospect for city officials.

Cleveland-based B&B Wrecking and Excavating Inc. was awarded the $488,000 contract for demolition ($108,000) and asbestos abatement ($380,000) of the 351 S. Sandusky St. hotel. The demolition is being paid for with federal Neighborhood Stabilization Funds and will make way for future residential use at the 5.4-acre lot on South Sandusky Street

B&B Wrecking and Excavating is waiting for the notice to proceed, which could occur as early as next week, city spokesman Lee Yoakum said. With the approval, the company can mobilize its equipment on site. The project will be completed with cranes and skid steers.

Once the property is demolished, the city will send out a request for proposals from the private and nonprofit sector for redevelopment plans for the site, city manager Tom Homan said. The grant’s terms require that the future development be residential.

“We’re excited about the prospect,” Homan said. “It’s now become an eyesore … it was really the place for Delaware events 30 years ago.”

City departments and nonprofit organizations recently removed several items from the fire-damaged hotel to be reused or recycled.

Delaware County Habitat for Humanity executive director Harry Pape has confirmed interest in the property.

The structure and land was purchased by the city in late January for $227,000 from BLX Capital Real Estate, LLC with the federal funds. The land will be redeveloped into a “pad-ready” site by 2013.

Delaware city was designated as the lead community responsible for administering the $1.1 million grant for projects in the city and the county.

The city and county approved the hotel redevelopment plan last year and also agreed that any remaining project funds will be used for down payment assistance and rehabilitation activity in target areas to be determined by the county.

The hotel was opened in 1974, but has been vacant since September 2008 when it failed inspection and was closed for code violations. A three-alarm fire in July 2009 caused an estimated $900,000 in damage. The fire was ruled an arson by investigators and an arrest in the case was made in December.

mmackey@delgazette.com