Acoustic Guitar Construction

I have just acquired a 40 or so year old Yamaha FG-230 12-string and I have many questions about restoring/updating it. First of all, the bridge needs replacing because the neck needs resetting and the saddle has been shaved down as far as it will go (past the wood, actually) and I would like to replace it with a smaller bridge. This will involve some refinishing work, I assume. Also ,the neck is the thickest (not widest) neck I have ever seen. I was wondering if I could sand the neck down to a comfortable thickness and refinish it without any structural problems. I'm also thinking about installing a Bridge Doctor to help with the bulge below the bridge. Other than that, it's in pretty good shape. The best part, it was free!

Yeah those necks are war clubs -- you'll have to determine how deep the truss rod slot is, don't want to remove too much material and hit the rod. I don't believe making the bridge smaller is a good idea I'd make it and the bridge plate a little larger -- I've seen tutorials that show how this can flatten out the sound board bulge. Bridge Dr. why not on a free guitar? I'd get that first and see what it will actually accomplish relative to your situation.