State officials today said the demolition of Uncle Billy’s Hilo Bay Hotel on Banyan Drive is underway, marking the end of an era.

The Hawaii Department of Land and Natural Resources said the wooden lobby and restaurant were demolished weeks ago, while work began Monday morning to knock down the first of two, concrete hotel wings.

Despite some setbacks on Monday — including a parked car in a coned-off section of an adjoining hotel and an excavator malfunction — construction workers were eventually able to proceed. Officials say demolition will continue until the dilapidated hotel is leveled.

“Barring further stoppages, it’s expected both wings will be brought to the ground within the next month,” said DLNR in a news release.

The property built in the late 1960s by William J. “Uncle Billy” Kimi Jr. was once a celebrated, 146-room hotel, but became an eyesore due to deferred maintenance and repairs.

It ceased operating in June 2017, and was condemned by Hawaii County that year due to its deterioration. After the ground lease expired, the state became the hotel’s owner.

The property then become a target for break-ins, squatters, vandalism and arson fires, leading to several law enforcement sweeps.

DLNR attempted to award a lease for the renovation or demolition of Uncle Billy’s, but was never able to agree on terms with the state or private developers, and demolition was delayed for years.

An emergency proclamation issued by Gov. Josh Green last year cleared the way for Phase 1 of the demolition project to begin, according to DLNR, which included the removal of asbestos. Phase 2 will involve the removal of the property’s paved sections and any contaminated soil.

“I’d like to acknowledge the progress from a year ago, in addressing a public health and safety hazard, complaints, unauthorized occupants and significant community frustration,” said DLNR Chair Dawn Chang in a news release. “This could not have happened without the Governor’s Emergency Proclamation and the collaboration of the state and Hawaii County.”

Chang said Hilo-based contractor, Isemoto Contracting, has stayed on schedule and within the state’s budget for the demolition project.

Officials said the future use of the parcel the hotel sits on has yet to be determined.