in St. George's that has become known as a regular drug and sex den. The run-down building on Ordnance Island in St. George's has been the source of numerous complaints over the years as it attracted squatters, drug addicts, drinkers and even prostitutes. Despite being right beside the cruise ship terminal and highly visible to tourists, it has stood empty for about 15 years. And when The Royal Gazette went there this week, there were bottles and cans strewn around the place, and pornographic magazines spread about on the floor. Crack and heroin addicts have been known to hang around the 1840-era building, and prostitutes have also been suspected of using it for work.

However, at present, somebody has made themselves so at home that there is a bedroom set up, complete with dressing table, and even clothes hanging on a make-shift washing line. Faeces and bottles of urine lay scattered around the floor, graffiti that reads "no trespassing'' is scrawled across the outside walls. But Mayor of St. George's Henry Hayward has revealed for the first time that a deal with developers is imminent. He said: "We are discussing the possibility of having the building restored and if things fall into place, work should commence in a couple of weeks. "We are in negotiations now, but we cannot reveal who the developer is because nothing is finalised. "The plan is for a combination of offices and residential units. It is estimated that it will cost in excess of $1.5 million to $2 million to complete the work. "We are very much hoping it all comes together. We have been working on this for years. It is exciting for the town.'' Mr. Hayward said the Corporation will continue to own the building, but lease it out to the developer. The fact the Corporation did not want to sell it off was one of the main reasons why it was difficult to find a developer. He added: "Because we didn't want to sell it, and just wanted to lease it out, developers looked at what it would cost them to turn it around, and then backed off. "But it is an ideal site and it has great potential.'' Mr. Hayward said if the developers managed to start work within the next two weeks, he hoped to see the spruced up building ready for re-opening by the end of the summer. The Corporation and Police have received scores of complaints over the years about the empty building from the community, as well as from captains and officers from the cruise ships. But he said no matter how many times the building was boarded up and squatters thrown out, just days later people would break in again. Yesterday, United Bermuda Party Sen. Kim Swan, who lives in St. George's, said he was delighted to finally hear that a future had been secured for the building. He said: "The building is at the gateway to St. George's and is one of the main focuses for the cruise ship passengers as they come in to the town. "It did not do the town justice at all. I am delighted to hear that it is finally going to be renovated. We could not let this go on much longer. "It is great news for the town, especially at a time when we have just been given heritage status. I applaud the Corporation and the St. George's Foundation for their efforts.'' And Government MP Delaey Robinson, who represents St. George's North and is also chairman of the Tourist Board, said the building was a prime site. He said he had hoped previously that the building could be used as a heritage site, but another location has been pinpointed for that. But he said he was glad a use and developer had finally been found for the derelict building, which was formerly used as the storekeeper's cottage when the British Army was based on Ordnance Island. Mr. Robinson said: "It is wonderful news to hear that this project is now hopefully moving ahead, and so soon. "We have waited a long time -- something needed to be done. It's great news.'' PHOTO Coming clean: One of the squatters of the derelict building hangs his clothes out to dry on a makeshift washing line. Garbage dump : Old carpets, furniture and trash lie strewn around the old house on Ordnance Island. Waiting for an overhaul: The empty 1840's building on Ordnance Island in St. George's that is used by squatters and is now set to be redeveloped. No trespassing : The boarded-up windows and doors of the waterside building have been covered with graffiti by vandals. Prime location : The balcony of the run-down property has breathtaking views across St. George's Harbour.