State officials are relying on emergency powers to speed up delayed plans to remove an abandoned and decaying waterfront hotel in Hilo.

The state Department of Land and Natural Resources announced Friday that demolition of the vandalized and partially burned-out eyesore that used to be Uncle Billy’s Hilo Bay Hotel could begin by the end of the year.

An emergency proclamation issued July 18 by Gov. Josh Green is being used to facilitate the work, which DLNR has tried to do for several years but lacked funding until earlier this year.

The 148-room hotel was developed by a private company in phases from 1966 to 1970 on land fronting Banyan Drive leased from the state. It has been shuttered since 2017.

The emergency order states that conditions on the site — including hazards in the unstable building as well as ballooning costs for security, police and fire personnel in response to activities by squatters — constitute an emergency.

“The condition of the property presents dangers to trespassers and law enforcement officials alike,” the proclamation states. The order also said the decaying hotel’s proximity to the ocean presents ocean and ground water pollution risks.

Green’s emergency order allows suspension of various state laws including permitting and procurement.

“We appreciate the governor’s emergency proclamation as we have long sought a solution to Uncle Billy’s,” Dawn Chang, DLNR director, said in a statement. “The proclamation is intended to remove some of the regulatory processes that can delay timely demolition and removal. It speeds up the permitting and contracting process by suspending certain state and county permitting and procurement requirements.”

Under the emergency order, DLNR contracted Andrew’s Fencing LLC to surround the hotel property with a fence to prevent continued illegal occupation. The work is expected to begin later this month and take about a month to complete.

A demolition contractor has not yet been picked. DLNR said a contractor selected for the work will not be exempted by the emergency order from obtaining material disposal certificates and other regulatory permits.

The Legislature appropriated $8 million earlier this year for the work using general obligation bond funds that DLNR must pay back over time with interest.

DLNR unsuccessfully sought legislative appropriations from 2019 to 2021 to pay for demolition after failed efforts to make a deal with a private developer to renovate or redevelop the property.

In 2022, the Legislature appropriated $13.5 million for demolition in the state budget, but that money was already in a DLNR special fund needed for other things including conservation programs and payroll that the agency said should not be cut to pay for demolition of the hotel.

After the site is returned to a natural state, DLNR aims to create a plan for future use of the 1.8-acre property in consultation with the community and other stakeholders. Approval of any plan will be up to the Board of Land and Natural Resources.

Prior ideas have included a new hotel, apartments, open space and parking.

“We believe that continued coordination with the Hawaii island community, and in particular the Hilo community, can make Banyan Drive an economic engine and cultural resource for everyone,” Chang said.