Keith Punler, director of Kapital Residential Ltd, was granted permission in 2015 to transform the derelict hotel into 45 sheltered housing apartments.
However, concerns have been expressed since then about the speed of progress.
But Mr Punler has told the Mail that, now permission has been granted to demolish the extensions to the building, work might soon be able to start on transforming the former hotel.
He said the demolition work will “include the taking down of the old extensions including the function room, sheds and conservatory at the front”.
Mr Punler said there was not currently a start date set for demolition work to begin, but added: “It’s scheduled for construction in 2019 for sure. But the demolition work has to be done first.”
Councillor Colin Davidson said he was “disappointed” the date to start work had been pushed back.
“We were given assurances that the work would have commenced by now and be well under way as we begin 2019,” he added.
“If there is no sign of any work starting on the hotel in the coming months I believe the local elected members and council officers responsible for planning, along with the community council, need to seek a meeting with Mr Punler and ask him to develop the site or consider disposing of the site to another developer who will.”
The local councillor concluded: “The villagers and visitors to Lundin Links have been supportive of Mr Punler but their well of patience and good will has run dry in my opinion.”
Peter Aitken, chair of Largo Area Community Council, also expressed concerns about the site.
“Finally, after several years, an application for a building warrant for demolition was issued at the end of last year but no date for commencement of the works has been confirmed by the developers,” he said.
“The community is concerned at the derelict state of the site which is affecting the community and also the look of the village. Safety is another concern.”