A backhoe tore into the former Belmont Beverage building in downtown Fort Wayne IN, signaling yet another step forward for the Harrison Square project. The now vacant Palace restaurant next door to the Belmont is also slated for demolition. A hotel and parking garage will be built on those properties.

"It's great. For some people might be a little sad, but all I think about is what's going to be here," Fort Wayne Deputy Director of Development Greg Leatherman said.

The Belmont Beverage lot, located off Harrison Street right across from the Grand Wayne Center, has been on the city's hit list of hot properties long before Harrison Square ideas came about.

"It's particularly gratifying for this to be the first building. It's a nice way to kick off the start of a great project for downtown Fort Wayne. For years to come, I will remember this day," Leatherman said.

Operations Manager of Belmont, Gary Gardner, said seeing his building being torn down was difficult.

"It's disappointing, and they even started right where my office is," Gardner said. "But if you want to revitalize downtown, something has to happen and this is really the only logical spot."

Gardner added that he's upset to leave downtown at a time when the area is being brought back to life. He would be interested in opening a store in the retail space available as part of the Harrison Square project, but only if there would be door-side parking.

"What I sell is cumbersome and heavy. If I can't have a parking lot at the door, I wouldn't be interested, but we'll look at anything. We're having a hard time finding something downtown," Gardner said.

Bob Deetz drove to Fort Wayne from Woodburn to watch the demolition Thursday morning.

"It's sad to see a landmark go, but with all the beautification projects in downtown, it's time that it goes," Deetz said.

Demolishing Belmont Beverage is part of Phase One of the demolition plans. The second part of Phase One will be taking down Palace Restaurant right behind Belmont Beverage.

Phase Two is tearing down houses along the area to make temporary parking for Lincoln employees.

Phase Three is demolishing houses along Ewing Street.

Phase Four is taking down the Martin Luther King School.

Phase Five is demolishing businesses along Jefferson Boulevard including
Subway, Auto Time and McMahon Tire.

All the demolition is slated to be finished in October for construction to start later in the fall. The city's goal is to have the stadium, condominiums, retail space and parking garage finished for the Wizards' season opening game in April 2009. The hotel should be finished a few months after that.

The demolition Thursday comes just days after the Redevelopment Commission approved the definitive agreements for Harrison square. Those are the documents detailing the obligations of Harrison Square's private investors and the City of Fort Wayne. The City Plan Commission also approved some zone changes that allowed Harrison Square to move forward, and the City Council approved a bond financing plan.

Here are the next steps for the project in August:

* A working group will convene to consider design, financing and historical issues relating to a walkway that is proposed to connect the Courtyard by Marriott and the Grand Wayne Center via the Indiana Hotel.

* Harrison Square bond financing will be considered by the Local Government Tax Control Board and the Department of Local Government Finance at the state government level. Final approval could come this fall.

* City Plan Commission will consider approving the primary development plan for Harrison Square. The Plan Commission is the sole entity responsible for approving the development plan.

* City Council will consider zoning map amendments, which were approved by the Plan Commission earlier this week, as well as street vacations.