HILO, Hawaii (KHON2) -- A Big Island landmark is being demolished. The state Department of Land and Natural Resources confirmed a portion of the dilapidated Uncle Billy's Hilo Bay Hotel has already been torn down. Now that it's finally being removed, KHON2 looked into what the future holds for the area. Download the free KHON2 app for iOS or Android to stay informed on the latest news The demolition and removal of Uncle Billy's Hilo Bay Hotel along the iconic Banyan Drive marked the end of an era. Sen. Lorraine Inouye (D), who represents Hilo, recalled what it was like in its heyday. Honolulu bus stop not fixed for months is ‘awful’ "Banyan Drive used to be a very, very happy place," Inouye said. After abruptly closing in 2017 and being condemned, the property, sandwiched between two of the area's nicest hotels, was an eyesore and turned into a haven for crime and squatters. "We just need to clean up the place," Inouye explained. "And there's a process that I've been working on with DLNR." She said the state earmarked around $8 million to demolish Uncle Billy's. According to Gary Hashiro, an engineer for DLNR, the front lobby and restaurant area have already been torn down. "The above-ground portion, the current phase, we should be done by the end of the year," Hashiro said. "Then the next phase would be to take care of the below-ground structures, so the building foundations, the parking lot and so forth." No word, when the second phase will be done. The real question is, what will happen to the space once it's cleared? Inouye said they want to revitalize the entire Waiakea Peninsula. "We want banyan drive to be what we had before," she explained. "What we're saying is if we can get access to the state taking over the golf course, build couple of hotels--we don't need 5 star hotels there--all we need is to increase our hotel capacity." That could be an economic engine for the community, supporting large events like Merrie Monarch. Find more Hawaii, Oahu, Maui and Kauai news here Inouye said the Hawaii Community Development Authority is working with DLNR to develop a long-term plan for the area. "There is a future, hopefully, we can do it within the next six years or so," she added. "But there's a lot of work to be done."