Chisholm Tavern's doors will remain open until at least the end of the year, after the venue's lease was extended until December.
The popular pub, which has been at the centre of a long-running dispute over a proposal to build a McDonald's on the site, was originally slated to close in May.
However, a court case about the sale of a toilet block on the site, which had held up development of the McDonald's, is unlikely to start until at least November.
The delay had led to an agreement between the pub's owners and Ganellen, the development company which owns the Chisholm Village Shopping Centre, to extend the lease.
Chisholm Tavern owner Jennifer Hunt told The Canberra Times a condition of extending the lease of the pub until December, as part of negotiations with Ganellen, involved taking over the space of a Chinese restaurant next door, which had been vacant for some time.
"Negotiations are still happening," Ms Hunt said.
"This has given us some breathing space, and there are still quite a few decisions to make."
It's not yet known how the owners of the Chisholm Tavern will use the space of the adjacent Chinese restaurant.
However, it's understood the restaurant could be used as a function room, or be combined with the existing floorspace of Chisholm Tavern.
While the long-term future of the Chisholm Tavern may not be known beyond December, Ms Hunt said the lease extension provided some certainty for patrons.
"Our regulars are totally happy with the decision if it gives them another eight months here," she said.
The extension of the lease is the latest development in the long-running saga over the future of the Chisholm Tavern, with the pub marking its 30th anniversary this year.
A proposal to close the tavern and build a McDonald's on the site has been on the cards since 2019.
The McDonald's plan had led to an outpouring of community support for the pub, including multiple petitions from residents and the support of all three ACT political parties.
Two proposals for the development had been rejected by the ACT Planning and Land Authority.
The ACT government appeared to have saved the pub in February when it blocked the sale of a public toilet block on the site.
However, the ACT Civil and Administrative Tribunal approved a decision to let the McDonald's set up shop, on the provision the government sell the toilet block.
The dispute over the toilet block is now set to make its way to the courts, but initial hearings are not scheduled to take place until November at the earliest.
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