Talks have been held between council chiefs and Leeds Brewery bosses over the future of one of the city's most historic pubs.
The Garden Gate pub in Whitfield Place, Hunslet – a grade two listed building – was put on the market by owners Punch Taverns last year with a guide price of about 160,000.
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It is understood discussions have taken place between Leeds Brewery, a micro-brewery established in 2007, and the council over the possibility of the authority offering the firm help to acquire the pub.
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Sam Moss, one of the brewery's directors, said: "Everything is at a
very early stage and I'd rather not go into details."
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Coun Andrew Carter, council leader, said: "We have been working with the Leeds Brewery to see how we can support them and keep brewing in the city.
"We have had general talks with the company's owners."
Following Tetley's decision to brew its beers outside Leeds, Coun Carter said: "We have made it clear we want to see the brewing tradition kept alive in Leeds.
"The Leeds Brewery is one of several micro-breweries in the city and it is proving a very successful one.
"We are talking to them about a range of issues and will continue to so."
Coun Elizabeth Nash (Lab, City and Hunslet) is urging the council to do all it can to help Leeds Brewery take control of the Garden Gate.
She said: "The Garden Gate is a much loved, well known, beautiful and historic public house in Leeds and it would be a great loss if it were to close.
"The proposal by Leeds Brewery to take it over and keep it open is a great idea and a far better option than letting this listed building become neglected and fall into disrepair.
"I would urge the council to do all it can to assist Leeds Brewery in acquiring the Garden Gate.
"In the current economic climate this scheme makes sense and the council should be helping people where it can and fostering an entrepreneurial spirit among its residents."