HORSHAM Magistrate's Court has ordered the owner of Dimboola Hotel to begin redevelopments on the burnt-out site by the end of the year.
Magistrate Jack Vandersteen ordered Paul Rintel to pay $5000 to the Make A Wish Foundation for having failed to comply with a Hindmarsh Shire Council building order to demolish the building, which was gutted by fire in 2003.
Mr Rintel was also ordered to complete repairs to improve the hotel's safety by April 30 and 'substantially start' planned redevelopments by December 31.
He bought the fire-ravaged freehold property for $1 in 2004.
Council chief executive Dean Miller said the decision would end nine years of speculation over the future of the 'eyesore'.
"It is a talking point in town and it is a talking point in Victoria because tourists come to Dimboola and see it," he said.
"Council's primary aim is to see the hotel redeveloped and if that cannot happen then we would like to see it demolished as the next best option.
"Obviously council doesn't want to see that hotel in a derelict state for the next 10 years."
Mr Miller said Mr Rintel could not begin the hotel's redevelopment until after a Victorian Civil and Administrative Tribunal hearing.
He said Dianne Haddon, who owns an adjoining property, had objected to the redevelopment.
"Council has had a look at the application and has approved it but it can't go ahead until that is resolved," he said.
Ms Haddon described the Dimboola Hotel as a 'bomb site' and said she would fight the planning permit at a tribunal meeting on February 26.
She slammed the council for having failed to ensure Mr Rintel demolished the property as ordered almost two years ago.
"I will argue that the foundation of the burnt-out hotel is affecting the integrity of my building, the safety of my building and I haven't been able to rent or sell that building because of the impact," she said.