A VOLUNTARY group battling to transform a mothballed railway canteen into a thriving community centre today warned it could fold.

Community Regeneration York (CRY) said the dream of securing the disused building on the former Holgate carriageworks now "seems as far away as ever" - after seven years of negotiations hit a brick wall.

Chairwoman Christine Bainton called on Yorkshire Forward, the development agency which owns the former canteen, to act now amid warnings CRY could disband within weeks with the loss of 13 jobs.

She said problems striking a deal intensified when the eyesore area became part of the 'masterplan' for the massive York Central 'teardrop' development.

Mrs Bainton said: "The longer the building just stands there empty, the more it's going to fall down.

"We are trying to preserve it, but the building is getting further and further away as far as we are concerned.

"We are beginning to question what the point of carrying on is and fear it could be taken away from the community. It's the only building the community can use from the carriage works."

Plans for a hire hall and small office space were launched with great optimism after the closure of the carriageworks.

In 2000, CRY emerged from a community arm of the York Regenera-tion Partnership - the body formed to redevelop the Holgate area after the axe fell on ABB.

It became a not-for-profit company aiming to generate funds to buy the 10,000 sq ft site.

Successful ventures included training charity workers in computer skills and helping unemployed people find work.

But Mrs Bainton said years of negotiations with Yorkshire Forward led to nothing concrete.

She said: "There was a time when it looked like we might be given the building on a peppercorn rent, then it was put up for sale, so we completed a comprehensive plan.

"Then it was taken off the market about three years ago because it's part of York Central. We're no nearer now than we were seven years ago. It's very frustrating.

"They say after the masterplan something could happen - but we can't continue to work on a maybe.

"At the moment it probably looks like it's not going to happen."

She said unless Yorkshire Forward made a decision on the site soon, funding problems meant it would not be worth CRY renewing its lease on its Hungate offices.

The group has five voluntary directors and 13 paid staff. Its lease expires in December.

A Yorkshire Forward spokesman said: "We are continuing to work with partners to agree the best outcome for the York Central site."

Updated: 10:06 Saturday, October 30, 2004