SQUATTERS may have caused a £10,000 headache for the leaseholders of the Bonding Warehouse, but their actions could kick-start the process of bringing the building back into use.

The businessmen who control the former York pub hope the recent "sorry saga" will help bring them together with city leaders to find a suitable future for the building.

The derelict Grade II listed Skeldergate building, built in 1875, was today secure again after members of the York Peace Collective occupied it eight days ago.

They said they wanted to protest against wasted property in York, but gatecrashers arrived and began damaging the building and what little property was left inside.

Leaseholders Lionel Davis and Keith Carby won an eviction order at York County Court on Thursday, but the trashed building had already been abandoned.

John Procter, the leaseholders' building manager, said the Bonding Warehouse remained a "difficult" building, because of its condition and position by the river.

But he said that the leaseholders hoped to find common ground with the council, which owns the property, to create a community facility and a residential or business development.

He said: "We hope this sorry saga will kick-start the formal process of getting the building back up and running again.

"We have a meeting with council conservation officers scheduled for September 8, where we will take them through one of our proposals and see what their concerns are.

"The future of the property is still wide open, but we will hopefully deliver something that will benefit the whole community.

"The city of York is bulging with developments of flats, but there is nowhere that people can get together and we hope to be able to create a community facility."

City of York Council bosses said the leaseholders had breached their 50-year lease by allowing the state of the building to deteriorate.

Simon Wiles, director of resources at City of York Council, said: "The council is extremely keen that the building is brought back into use and that its current appearance is improved quickly."

Updated: 10:15 Saturday, August 21, 2004