SQUATTERS have moved into one of York's most notorious empty buildings and declared it open as a "peace hotel."

Two dozen people have made their home in the dilapidated former White Swan Hotel building, in Piccadilly.

The activists said they want to bring the building, voted York's worst eyesore in an Evening Press campaign five-years-ago, back into use.

They have begun clearing and decorating rooms and are looking at plans to open parts of the hotel to the public. They also put up a sign outside reading "Rainbow Peace Hotel".

Michael Gibbons, 24, said the group had "occupied and liberated" the disused five-storey property which contains more than 50 rooms.

He said: "We plan to stay here as long as possible, even if we have to go through court proceedings."

The occupiers, some of whom have moved from the peace camp at Fulford Ings, have put up posters outlining their legal rights in the shopfront windows.

Damo Gunn, 34, of Harrogate, said the group, which includes some young children, were not acting illegally and had not forced entry.

"Many people will have never been inside this building," he said.

"It is such a waste of space. We hope to get it going as something useful in the city."

The hotel, restaurant, bar, and basement nightclub have been closed for 20 years, despite council attempts to bring them back into use.

A spokeswoman for York Police said officers were concerned over the safety of the decrepit building, but would await the outcome of any civil eviction proceedings.

A City of York Council spokesman said this was a matter for the owners and squatters, but added that officers would look more closely at the situation after the Easter break.

She said the council had been in contact with the owner, but any change of use must await the outcome of the Coppergate II public inquiry.

The Evening Press contacted property agent Insignia Richard Ellis, which manages the building on behalf of the owners, but it declined to comment.

Coppergate Centre manager Diana Dickson said the small group "knew their rights." She said: "I understand that the owners will probably take legal action to regain possession of the property."

Stuart Robinson, who manages the neighbouring Jessops store, said the squatters had been seen cleaning the building frontage.

He said: "We all know that the building is an eyesore and with it being shut for at least 15 years, it was only a matter of time before this happened."

Updated: 10:27 Saturday, April 19, 2003