TENANTS of a dilapidated landmark York building could find themselves in court for thousands of pounds of rent arrears.

The Bonding Warehouse, in Skeldergate, was a busy restaurant and public house before it was damaged by flood water in November 2000.

But tenants Lionel Davis and Keith Carby, have not traded from the 19th century riverside building since, and are locked in a war of words with City of York Council

Mr Davis claims the council never carried out "certain" repairs to the building after the flooding.

He argued that the authority did not want him to reopen the Bonding Warehouse, and had plans to redevelop it as a residential property.

"They are entitled to start legal proceedings, but if we cannot use it as a pub there is no rent to pay," he said.

Last year, campaigning squatters moved into the pigeon-infested three-storey property to highlight its lack of use. But they were forced out by hooligans who caused damage estimated at £10,000 at the Grade II Listed building.

Later, civic leaders suggested redeveloping the building as a one-shop-stop venue and drop-in club for youngsters.

City of York Council's executive member for resources and advisory panel (EMAP) will discuss a report next week, asking to seek approval to start legal proceedings over rent arrears and failure to repair the property.

An offer to the tenants to surrender their lease of the premises will also be discussed.

The report states that Mr Davis and Mr Carby had the building on lease for a 50 year period, from June 1, 1978, at a rent of £20,000 per annum.

The user clause in the lease restricts the permitted user to licensed premises only.

The report states: "There are significant rent arrears and the premises have fallen into disrepair. The tenants however dispute that any rent is owed or that they are liable to put the premises in good repair.

"Specialist legal advice has been given and it is proposed to follow a recommended course of action; being commencement of legal proceedings and a parallel offer to obtain an early surrender of the tenants' lease."

A council spokeswoman refused to comment on Mr Davis's claims or reveal when the tenants stopped paying rent and how much was owed.

In a brief statement, she said: "The Bonding Warehouse will be one of the items on the agenda for the forthcoming resources EMAP on March 21.

"The property services department will put forward a series of recommendations of the best way forward for the future of the Bonding Warehouse and seek a decision from the executive member."

Updated: 10:11 Tuesday, March 15, 2005