Demolition of the fire-ravaged former nightclub in Methil could take up to three months to complete.
Preparation work has already started on the derelict site in Wellesley Road, which was destroyed in a blaze this month.
The property is to be torn down after the gutted building was declared unsafe.
Crews fought for several hours to bring the blaze under control, with police saying the fire was started deliberately.
Smoke from the blaze was visible from across the Firth of Forth in Edinburgh.
Two 13-year-old boys have since been charged in connection with the fire.
Now, Fife Council has said that, due to the close proximity of the building to neighbouring properties, demolition will prove “complex and challenging”.
Demolition firm Safedem estimates the work could take 10 to 12 weeks to complete.
Six nearby properties were evacuated following the Methil fire, with a number of people being supported by friends and family or in temporary accommodation until the former Maxwell’s Bar building can be demolished.
Demolition of former Maxwell’s Bar in Methil could take 12 weeks
Convener of the council’s Levenmouth Area Committee Colin Davidson said he is angry and disappointed at the impact one senseless act has had on the local community.
“Safety has to be our first concern here but it’s beyond frustrating that this mindless act of vandalism is causing people to be displaced from the comfort of their own homes for weeks while this vital demolition work is carried out.
“We contacted those residents affected over the weekend to let them know work is starting and to give them an opportunity to access their properties for a controlled time to collect any belongings they may need over the coming weeks.
“Our housing officers are also providing direct support at this time.
“Businesses currently closed have also been contacted directly and support is being offered through Business Gateway while trading is affected.
“I know the community will pull together as they always do in times of crisis to help and support those affected.”