THE owners of a disused York hotel have launched legal action to evict a group of activists squatting there, the Evening Press has learned.

A police spokesman confirmed that Bircham Dyson Bell, lawyers acting for the owners, have begun legal proceedings to evict the group from The White Swan Hotel, in Piccadilly.

The London-based firm has posted a notice at the hotel window stating: "The building is decrepit and uninhabitable and cannot be occupied as it is unsafe."

Two dozen people aged between two and 40 entered the property last week and declared it open as a "Rainbow peace hotel".

The substantial city centre building, which commands views over Parliament Street, became notorious as York's biggest eyesore after it topped a poll in the Evening Press Proud To Be York campaign five years ago.

Michael Gibbons, 24, speaking for the group of squatters, said they were taking each day as it came and were uncertain how they would react to an eviction notice.

He said the building was perfectly safe to occupy and the group was busy cleaning rooms, decorating and clearing debris from the interior.

Property litigation specialist George Josselyn, who is a partner at the law firm, is leading the action against the unwelcome visitors. He was not available to comment.

To evict squatters, property owners must take out a summons for possession in the County Court or High Court or produce a written statement or certificate under the Criminal Law Act 1977.

A spokeswoman for property agent Insignia Richard Ellis, which manages the building, said she "expected" that legal proceedings would be taken.

But she added that the company, which has offices in Leeds and Manchester, would be unable to comment further until after the Easter holiday.

The Evening Press understands that a group named Graham Family Settled Estates Ltd owns the building. We were unable to contact them.

After a long search to identify the owners, City of York Council began discussions to try and bring the 1920s building back in to use.

But the owners declined to participate further in talks towards transforming the four-storey building into affordable housing.

A spokeswoman for City of York Council said any decisions about the future of the building would have to await the outcome of the Coppergate II public inquiry.

Updated: 10:06 Monday, April 21, 2003