LEASEHOLDERS of the troubled Bonding Warehouse claimed today that City of York Council has been stalling moves to bring the historic building back into use.

Partners Lionel Davies and Keith Carby signed a 50-year contract for the riverside Skeldergate property while it was being run as a restaurant and pub in 1988.

But after it was closed following flooding in 2000, they have been unable to seal a deal with the local authority to breathe new life into the premises, despite protracted negotiations.

The derelict four-storey property, which has now become infested with pigeons, has been brought under the spotlight by squatters who want to expose the "waste" of unused buildings in York.

Mr Davis told the Evening Press today that he "deplored" the actions of the York Peace Collective.

But he said that he could understand the concern of local residents who wanted to see the building brought back into use as a community resource, a business or a block of flats. "We have been working hard and long before the floods of 2001 to find an alternative use for the building," he said.

"I have had in principle what I thought were agreements with the council but when it came to taking the various schemes forward, officers and elected members changed their minds.

"I have appealed to the leader of the council, who I know has been fully briefed on his officers' dealings with regard to the building, to intervene. To date, this has not happened."

The Grade II listed landmark building was constructed in 1875 and is owned by City of York Council. The leaseholders said that several developers had expressed an interest in converting the building into residential accommodation.

The latest proposal by leaseholders was to convert the upper floors into nine flats and transform the ground floor into a space for art exhibitions and cultural activities.

The current 50-year full repairs lease restricts use to licensed premises.

Last month, the council told the Evening Press it would take action if the building was not returned to an acceptable state of repair.

The authority today hit back, claiming the ball was in the leaseholders' court.

Simon Wiles, director of resources, said: "The leaseholders control the building and, if they are not going to reopen it, we would expect them to surrender the lease.

"They are currently in breach of the lease because they have allowed the state of the building to deteriorate and are also failing to operate it as a drinking establishment.

"We are seeking to negotiate an end to the situation but the ball is in their court."

Updated: 08:36 Thursday, August 19, 2004