PORT TOWNSEND — Demolition of the former Landfall Restaurant building, part of which dates back to World War II, has begun.

The octagonal part of the Point Hudson landmark that overlooks the marina is expected to be razed at least in part today.

Demolition work started Wednesday with a port employee tearing down the former restaurant’s bathroom and a storage building.

On Thursday, a worker with a backhoe began razing the rear half of former kitchen.

The octagonal area, where residents and visitors have eaten for more than two decades, was constructed and opened in 1980.

The port, which owns the Point Hudson corner property at Water and Jackson streets, plans to build an octagonal gazebo-style structure with picnic tables to commemorate the restaurant.

Port official said that, as planned — and if the port commissioners grant approval — the cleared site will be transformed into a park with a food stand.

The port has agreed with the city Historic Preservation Committee to preserve 500 square feet of the original World War II-era military shed building.

Port Townsend architect Richard Berg is drawing up two concepts for the site, said Port Executive Director Larry Crockett.

That would leave a structure measuring 15 feet wide by 22 feet long.

The port would remodel the historic shed building as the fish-and-chips and clam chowder stand.

“We want the site cleared and the outside of the building done by the Wooden Boat Festival” in September, said port Deputy Director Jim Pivarnik.

The port would put out a request for proposals and possibly have a tenant in the food stand by the first of the year and in business by spring 2011.

The hope is to complete the park adjacent to existing parking for the nearby whale-watching tour business, P.S. Express, Pivarnik said.

Port Executive Director Larry Crockett said the park could include native plants pathways similar to those along Water Street between the Swan Hotel and the Northwest Maritime Center.

Crockett said a longer-term concept could include four or five covered spaces for outdoor businesses but the park and preservation project were the main considerations at this time.

Former owner, George Daniels — who once built boats in a nearby Point Hudson boat shop and was known in town as “Fiberglas George” — said the structure would not meet today’s building codes.

“When I got it it was a mess,” said Daniels, who now lives in Daytona Beach, Fla., in a February interview.

He contacted the Peninsula Daily News after reading a story about the building on the website, peninsuladailynews.com.

Daniels lived in the structure for awhile before opening a restaurant there.

He owned it for about nine years before selling it.

Port officials have been giving away utensils, glasses, furniture and appliances used in the restaurant. The red front door was already claimed by Thursday, along with the octagon’s windows.

Crockett said items not taken would be placed outside the building for people to take away.

The port secured a city of Port Townsend demolition permit to get the job done.

The decrepit building sits on a 5,000-square-foot site at the end of Water Street overlooking Point Hudson Marina.

It is across the street from the new Northwest Maritime Center, a $12.5 million improvement to that end of the downtown historic district, which is now spruced up with recently completed city of Port Townsend streetscape improvements, such as pavers, curb bumpouts and stormwater rain gardens.

The port enlisted Point Hudson-area residents to serve on a committee to discuss uses for the site, holding meetings in the building last winter.

The building was vacated last October after The Landfall owners went into default with the port on back rent and the state Department of Revenue placed a lien on the business for back taxes.

In 2005, a new two-story restaurant and lounge was proposed overlooking the marina in 2005, but that idea was dropped.

Port officials estimated it would cost about $104,000 to upgrade the building as a restaurant to meet Jefferson County Public Health code.

To continue to operate the building as is would require an investment of about $39,000 in repairs, port officials said.

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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.