"We're planning for Jan. 6 to begin the deconstruction of the building," says Fort Smith Mayor Peter Martselos.

The old hospital, which has been empty for close to 20 years, is contaminated with asbestos.

It is considered a potential fire hazard and environmental disaster.

Martselos explains the date to start demolition was selected so government contributions would be received before the end of the town's fiscal year.

"We have to use it before March 31," he says.

So far, $150,000 has been committed by Human Resources Development Canada, says Martselos, adding confirmation letters are expected soon on more financial support from other federal departments.

The GNWT has promised to match any federal contributions.

Martselos says the cost of the project will likely be less than $600,000, including in kind contributions from Aurora College, the Town of Fort Smith and other organizations.

The demolition project will take three to four months and employ about 35 people.

The contractor for the work is the Thebacha Road Society.