UPDATED, Wednesday, 8.30am:
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Demolition work continues on the old Salvation Army site this morning, Wednesday, June 19.
Before 8.30am an excavator was back operating.
The Standard reported on Tuesday that demolition work at the Lava Street site in Warrnambool had started.has started.
Heavy machinery moved and work was well under way at 10am.
Warrnambool Demolitions operator and Lava Street site owner Brant Murrihy said on Tuesday he had no firm plans for the future of the prominent property.
"I've got no plans as yet. We've got to cleared it and we'll worry about that in future. I've not decided," he said.
"We're not in any hurry. We may make a decision towards the end of the year, but the priority now is to get it cleared and safe."
Mr Murrihy said he had strong support from neighbouring residents to clear and develop the site.
The site has been the scene of ongoing controversy in recent months as squatters moved in causing severe disruption to neighbours, passing pedestrians, local businesses and the Warrnambool community.
About six people were living in a dwelling at the rear of the church for the first couple of months of this year.
Police officers regularly attended the address after complaints.
On Saturday, March 30, the unrest reached a pinnacle when the dwelling at the rear of the old church was torched, with three ignition points found.
Neighbouring properties were put in danger and witnesses reported flames protruding "four or five metres" out a window of the dwelling endangering neighbouring units.
One neighbour described the flames as "licking" at least one neighbouring apartment.
The fire was reported to emergency services just before 2.30pm and three Warrnambool Fire Rescue Victoria units attended at the old Salvation Army property.
A Fire Rescue Victoria spokesperson said firefighters were contacted at 2.17pm.
"FRV crews were called to a fire at a structure near the intersection of Lava and Henna Streets in Warrnambool," they said.
Two men were also charged with a burglary at a nearby business.
Police sources not authorised to comment previously described the dwelling as a drug den, with used needles and faeces littering the property.
At that time the owner outlined plans to demolish the site and develop the property in coming months.
In November last year the Warrnambool City Council approved the demolition application.
Neighbours had called for the plans to be fast-tracked to stop squatters living there and to put an end to the constant anti-social behaviour.
In April last year The Standard reported that the site had been sold for more than $2 million.
