YORK’S “Splash Palace” could be turned into a storage area for market equipment after it was revealed the unused toilet block is costing taxpayers £8,000 a year to run.

The Parliament Street eyesore has been closed since December 2009, when new public loos were opened in Silver Street, and has since been targeted by vandals and graffiti artists.

The Labour group which controls City of York Council plans to allocate £134,000 towards its demolition and wants to progress a scheme to use it for storing equipment for market traders.

The party’s financial plans will be debated at a full meeting of the authority on Thursday.

Council leader James Alexander said the demolition was expected to cost at least £66,000. The rest of the money Labour intends to devote to the site would focus on developing the storage idea.

“The Splash Palace is an eyesore while costing the council taxpayer £8,000 a year in running costs,” said Coun Alexander.

“It is concerning that it has been allowed to be a focal point for anti-social behaviour and is a magnet for graffiti and damage, yet costs this amount to maintain annually despite it being of no use. The site cannot be sold, as it is on a public highway, but a solution is needed.”

He said the idea for a market storage area was discussed by a cross-party group of councillors last year, but no funds were committed.

“It is important this eyesore is removed to open up the area and allow for the potential to improve Piccadilly,” he said. “This project will help the market traders with storage while improving the look of our city centre.”

The Splash Palace was suggested as a possible site for a big screen to be set up in the city centre in time for the 2012 Olympics. But as The Press reported earlier this month, the plans for televising the Games as part of a nationwide BBC project have now been scrapped.