Heritage consultants inspected the former Newcastle post office this week in a sign that construction work on the beleaguered city jewel may start in coming months.
The inspection and the follow up report are necessary to obtain a construction certificate.
Building owner Dr Jerry Schwartz said he was forced to spend $18,000 to have pigeon droppings removed and metal mesh installed before the inspection could occur.
He also faces an unexpected $100,000 bill to replace the building's original copper drain piping that was recently stolen.
Another $200,000 needs to be spent sealing sections of the building's roof.
The expenditure comes on top of an estimated $1.5million that has been spent on the project to date.
Dr Schwartz said the community's frustrations about the lack of progress were matched by his own.
"Some people may be thinking 'oh, he bought it and he said he was going to do these things but what he really wants to do is put a tower in the middle of the post office and make it a multi-story hotel'. The answer is no," he said.
The hotel mogul's other Hunter assets include Hunter Valley Crowne Plaza and Rydges, Newcastle.
He also has approval to construct a hotel on land on Wharf Rd, adjacent to Rydges.
"I'm not going to start on that until I pull my finger out with the post office," Dr Schwartz said.
"I'm totally committed to Newcastle and the post office restoration. I'm an optimistic person and I'm pushing to get things done, but it is hard."
Dr Schwartz's original vision for the 1903 building remains unchanged - an indigenous cultural centre in the basement, wedding retail outlets on the ground floor and a first floor function centre.
"As I have always said, my plan is to do the basement first. Upstairs will take a long time but the basement won't take that long. But the problem is the basement is flooded because all of the water has gone through," he said.
"It's the same story going around in circles."
He also plans to have banners installed around the building to update the community on progress.
