The latter. The Berne Bear Pits were famous the world over as concrete pits in the middle of town with several brown bears. I can't remember how old they were, but they were fairly old, I believe. However, by todays standards, they suck, which is why I imagine they constructed some new facilities.
Berne has a zoo - Dahlholzli - but I don't think it is connected to the Pits in any way.
