North Yorkshire Council says it has accepted an offer to rent out the former Potting Shed bar unit in Harrogate which has stood empty for more than five years.
The unit is next to JD Wetherspoon and is part of the vast council-owned Royal Baths estate. The council had it on the market for £120,000 a year.
The Potting Shed closed in 2019 after less than a year in Harrogate when its parent company went into administration.
The building was previously home to Rift & Co and Revolution and spans 7,000 square feet.
In February, the council confirmed that it had accepted an offer on the former Viper Rooms building, which is also part of the Royal Baths, however, the leases on both units are yet to be signed.
The Grade II listed Baths was purchased by North Yorkshire County Council in 2018 however its value has fallen from £9.5m before the Covid pandemic to £7m today, according to a report.
The council’s director of finance Gary Fielding blamed the drop in how much the building is worth on a “general drop in market sentiment” towards the retail and night-time sectors.
The council moved the Tourist Information Centre from the Royal Baths to the Pump Room museum earlier this year which could raise £40,000 a year in rental income.
Mr Fielding said there has been interest in the former Tourist Information Centre office and prospective tenants will be shown around in the next week.
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