Demolition begins Monday on the hurricane-damaged Gulf State Park Hotel, with its concrete rubble recycled into the state's fishing reef program.

Virginia Wrecking Co. of Loxley will demolish the hotel over the next six months, Gov. Bob Riley said Wednesday in a statement.

Hurricane Ivan wrecked the hotel on Sept. 16, 2004. Insurance disputes delayed the demolition and a lawsuit in Montgomery County is holding up plans to rebuild the beachfront hotel.

The demolition rubble will be added to a minimum of three of Alabama's inshore artificial reefs located in the Perdido Bay system.

Reef material will be transported by barge to reef areas.

State Conservation Commissioner Barnett Lawley said the first inshore reef to receive the rubble will be the Bayou St. John Reef, which was begun last fall when material from the park hotel's pool, pool deck and seawall was deposited.

"We expect the Bayou St. John Reef will be completed with the addition of new debris from the old hotel," Lawley said.

Ono Island and Rockpile Reefs will also receive hotel debris to improve fishing opportunities.

About 1,200 square miles of offshore waters are included in the artificial reef general permit areas of Alabama, making it the largest artificial reef program in the United States.