The 107-year-old former Australia Cafe building in Holbrook will be destroyed by asbestos contractors early in 2020.
Scaffolding has been put in place around its impressive facade, which members of the community and Greater Hume Councillors sought to protect when the building was purchased by Property NSW through the Loose-fill Asbestos Voluntary Purchase and Demolition Program.
Approval for the demolition was initially delayed by council so that options to keep the facade could be investigated.
But at a council meeting at the end of last year, Public Works Advisory director Martin Dwyer said an extra $200,000 would be required to do so, and he commented he was unsure whether a developer would buy only a facade and land.
"It is technically feasible that this building could have the Mr Fluffy removed, you could clean up the brick facade and retain it," he said.
"I wouldn't be telling you it's technically feasible for any other building than this one.
"Of course once you have the facade there it would limit the development opportunities."
That council meeting was told demolition of properties in Holbrook would be finished by the end of the 2018 calendar year, but 95 Albury Street has stayed standing since the development application was approved.
A year later, preliminary work has now commenced on the demolition, with the actual destruction of the building expected to happen early in 2020 and the full process to be completed by April.
A NSW Fair Trading spokesman said it would be "a unique and complex demolition compared to other properties".
"Additional time and resources were allocated to allow for planning," he said.
"There are no further properties awaiting demolition in the Greater Hume Shire local government area after the program tested 1648 premises.
"All participating properties have been remediated, with land returned to the owners or returned to the community.
"A number of remediated properties are being progressively sold over time, to avoid flooding a property market."
Walls that separate the building with other businesses on either side will be assessed, and once the empty site is remediated, it will likely be sold at auction.
Holbrook Woolpack Inn Museum secretary Wendy Swan said there were three titles for the one building and they had been owned by many businesses over time.
"I'm not sure whether they will offer the blocks of land as a whole or three different lots," she said.
"Before it was purchased by the government, it was owned by solicitors in Sydney.
"It was the Holbrook Chronicle headquarters at one stage, a dress shop, the Aussie Cafe; it has been all sorts of things."
Mrs Swan said it was among the oldest buildings on Albury Street.
It was built after a fire that destroyed seven shops and two dwellings along that strip.
"The museum has a lovely photograph of the building in about 1912," she said.
"We're very sorry to see it coming down.
"It has a lovely facade with the arched windows - we would have liked the facade to be kept at least - but unfortunately, it was not to be."
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Demolition work will be done in stages, from site preparation where the property is encapsulated in white plastic sheeting to create an air-tight seal, to internal asbestos removal and spraying of blue sealant to trap any remaining fibres, and then demolition.
Once the site is remediated, soil samples are taken to test for fibres, and the property is then handed to Property NSW for sale.