The property, listed for sale in March for $750,000, has also been removed from the market. 

“The matter remains before an arbitrator as the owner is seeking a decision of the court as to the amount of the outstanding costs,” council development and environment manager David Simm said. 

“The matter was adjourned by the court late last week until the new year.”

The Land and Environment Court ordered council to carry out the work in March 2012.

Mr Kahilil, of Sydney, was ordered to pay the cost.

Council made safe an awning overhanging the street and fixed plywood to the exterior to prevent people and animals from further damaging the site.

Hopes were high the property would get a new owner and new lease on life given recent difficulties.

In August the list-price dropped to $600,000.

Maitland heritage enthusiast Chris Richards has renovated dozens of properties across the city and said the asking price was simply too high for the old Carrington Hotel.

“It’s probably worth $400,000 to $450,000,” he said.

“I’m not a valuer but looking at other properties I would think that would be more realistic.”

The property was listed amid expectation of a CBD boom.

Work had started on a warehouse-style conversion of the old Flash Palace, which adjoins the old Carrington Hotel. 

Grand Design Properties sold eight apartments off the plan in a week when they hit the market in February. 

“There is probably a market for turning it into apartments but it would be quite expensive,” Mr Richards said.

“To bring it up to current fire standards it really needs a lot of money spent on it.”

Council was given three months to carry out work that included boarding up windows and openings on the first and ­second floor of the building.

Council also removed waste and dead birds from the area.

Mr Kahilil and the realtor Bondings declined to comment on the legal challenge and the call to cancel the listing.