The building that once housed a psychiatric hospital in Weyburn, Sask., could be destined for an appointment with a wrecking ball.

In 2006, a Toronto-based company, DistributionCanada.com, purchased the building for $1 and was given until the end of 2007 to start construction.

Despite being given an extension to the end of June 2008, the company did not follow through on its plans to turn the former Souris Valley Hospital into an exhibition space for Chinese manufacturers.

The five-story brick building on Queen Street that used to house a psychiatric center is back in the city's hands. It may be the end of the line for the 80-year-old structure, according to city manager Bob Smith.

"If there is no other use for the facility, it will have to be demolished," he said. "It's 500,000 square feet of building ... made for one purpose and that being a hospital, so it's tough to find something that will fit into it."

It's estimated the cost of demolition to be about $5 million, Smith said. The expense will be covered by the provincial government.