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A giant vacant mill at the center of legal disputes and dreams of future redevelopment for a Central Massachusetts mill town will be leveled to entice future development.

The Worcester Business Development Corp. and Draper Mill owner Hopedale Properties and Worcester-based First American Realty announced the decision Tuesday. The Worcester Business Journal first reported the story.

First American CEO Philip Shwachman also owns Hopedale Properties.

The decision was taken after efforts to demolish around a quarter of the site’s buildings to make way for new development revealed “a number of significant structural and environmental conditions that posed safety concerns to the surrounding neighborhood,” First American and the WBDC said in a joint statement.

“We are optimistic for the future prospects of this key development site in the heart of Hopedale and very pleased with the enthusiastic support from local residents and community leaders alike,” Shwachman said in a statement.

The future of the 1.8 million-square-foot, 80-acre mill complex in Hopedale has been a bone of contention between Shwachman and local officials for years as various redevelopment plans failed over the years, leaving it vacant for around 40 years. The town had tried to take the property from Shwachman by eminent domain in the past due to lack of movement on redevelopment, but ultimately failed. Shwachman has owned the property since the 1990s.

Shwachman has hired the WBDC to do a market survey and create a master plan for the site. Initial survey findings suggest the site could be repurposed for multifamily housing, senior care facilities, industrial/flex space, open space or destination retail. Industrial real estate, particularly in the Interstate 495 corridor, is seeing a surge in demand, with significant requirements for space from Amazon and other large firms as yet unfulfilled.

Demolition of the 130-year-old buildings is expected to be completed by June 2021.