CITY of York Council said discussions were continuing over the future of a neglected riverside venue.

Officers have met the tenants of the Bonding Warehouse, in Skeldergate, York, to look at the future of the grade II listed building.

Leaseholder Lionel Davis and his partner, Keith Carby, took over the lease in 1988, but vacated the council-owned property following the floods of November 2000, which saw it deluged by water half a metre deep.

It is subject to a 50-year full repairing lease, which restricts usage to licensed premises.

A council spokesperson said: "There will be another meeting within the next two weeks to continue discussions."

The Evening Press reported last week that the council was threatening to take action to regain possession of the property if it was not returned to an acceptable state of repair. In 2001, Mr Davis said he was negotiating with council officers to sell the whole lot to a residential developer.

A year ago, the ruling executive held confidential discussions about the possibility of selling the property, but it is not on the market at the moment.

Updated: 08:47 Saturday, July 17, 2004