The Skowhegan Economic Development Corp. bought the former Kennebec Valley Inn back in March.
The costs of renovating the building and bringing it up to code were too high so the decision was made to tear it down.
Officials said they now have a site that is all ready for someone to purchase and build a new facility.
"We are very hopeful that we can find a business that wants to be in the downtown and is looking for a nice site to locate there," Jeff Hewett, director of economic and community development, said.
Officials noted there is plenty of parking and the town has paid to have it all redone.
They say there has already been one offer and a lot of interest in the property but that so far, no offer has been accepted and that the property remains on the market.