COUNCIL chiefs say they will take court action over a flagship building that has stood empty since it was built two years ago.

Businesses were expected to move into the £570,000 Foreshore building in Saltburn in the summer. But it has remained unoccupied because of a problem with damp seeping in from a slope at the rear.

Architects Jane Darbyshire and David Kendall, of Newcastle, and builders SGW Construction, of South Bank, both deny being at fault and the dispute has reached a stalemate.

A 2,000-name petition was fixed to the front of the building demanding that it be opened.

Now, Redcar and Cleveland Council says it will do the repair work and take action against one or both of the companies to recover the costs involved.

Coun Dave Fitzpatrick, cabinet member for culture, leisure and tourism, said: "We are going to take it forward with the intention of getting it ready for next season.

"It's frustrating for the council and expensive for the ratepayer."

He said two of the original businesses that had applied for leases were still interested in moving in. The building has space for two shops, a restaurant and a community room.

Glenn Pearson, who plans to open a family restaurant in the building, said he was happy things appeared to moving.

He said: "After considerable financial loss, frustration and stress, I'm relieved that there appears to be some light at the end of the tunnel. But why has it taken so long?"