Mayor Cohen continues to make the case about why the Market House lease with Gone to Market LLC, a Baltimore-based developer of markets, makes economic sense.
In an op/ed piece in The Capital on Sunday, the Mayor argues that the financial terms in the lease create the “incentive” for Gone to Market “to build up the economic value of the Market House. If the operator is successful, that means the Market House is successful, which is what we all want.” Scroll down to read more or click the link here.
In a video interview last week with Annapolis Sound, the Mayor offers insight into how the lease agreement was reached. He also seeks to address the public’s concerns over the lease, specifically the financial terms.
As a reminder, the City Council is holding a special meeting tonight starting at 5:30 p.m. at City Hall. The council is expected to go into closed session to discuss legal issues surrounding the lease. At about 7 p.m., amendments to the lease are likely to be considered. In addition, a charter amendment to raise the City’s credit to $10 million (from $5 million) will be introduced. If you can’t make the meeting, Annapolis residents can watch it live on City TV (Verizon Channel 34 and Comcast Channel 99/100).
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Guest Column: Investing in Market House is the right thing for Annapolis
By JOSH COHEN
Published 01/30/11
Imagine for a moment walking downtown this summer to the newly reopened Market House. As you approach, you hear the sounds. Where before it stood in silence, now it pulses with activity.
When you walk in, you immediately notice the transformed floor plan. Instead of being herded into the “bowling alley” down the middle, you now are free to wander from the front to the rear and from one side to the other.
You order a few oysters from the new raw bar. Then you take a seat to enjoy your meal looking out of the windows that are once again accessible to the public, taking in the sights of people passing by and the harbor beyond. You see old neighbors and strike up a conversation.
On your way out, you peruse other vendors and pick up some locally grown produce, smoked fish, meat and freshly baked breads for dinner later that evening. After leaving the Market House you pass by other shops downtown – some familiar, some new – and make a note to pay them a visit.
This vision of the Market House – an authentic, lively community gathering place and economic engine for downtown – is no pipe dream. The lease the city recently negotiated with Gone to Market LLC, a Baltimore-based developer of markets, provides the best chance for the Market House to succeed and to make this vision a reality. It is now in the hands of the City Council.
The lease achieves three objectives for our city:
- It ensures the Market House will fulfill its vision as an authentic public market with an emphasis on local vendors and without national chains
- It provides for a proven and successful group to manage it, thereby distancing the operational decisions from the politics of City Hall
- It protects the city financially by ensuring the city will not pay out a single dollar to cover operating expenses. It further protects the city by giving the City Council the right to terminate the lease if it’s in the public interest.
Most alderpersons share this vision for the Market House, but they haven’t yet embraced the economics of the deal. This is understandable, because this lease is not your standard commercial lease. If it were, it would maximize the city’s rent but would fail to preserve the authentic character and use of the Market House.
If the city demanded top rent, the operator would have to charge higher rents to its vendors, and we would end up with another food court full of pretzel, donut and pizza shops – exactly what the community has told us they oppose.
With its small size, limited parking, lack of storage and strict limitations on its use, the Market House is a risky venture for any operator. In a way, even the premise of a public market is fighting against the tide of history and economics. And now, with competition from Whole Foods, Trader Joe’s and other specialty grocers, it will be that much more difficult for an operator to stay afloat.
The lease addresses this risk by reserving a robust share of the profits for the operator. This is its incentive for making a long-term commitment to build up the economic value of the Market House. If the operator is successful, that means the Market House is successful, which is what we all want.
Although the lease insulates the city from paying for the operations, the city will invest roughly $600,000 to upgrade the structure. This funding will fix the heating and air-conditioning, install sprinklers under the eaves, install operable windows that open to allow fresh air inside, and reconfigure the utilities to improve the floor plan.
It is not the tenant’s responsibility to make improvements to the structure of the Market House. The building is a cherished public asset for our community that defines the historic character of our downtown.
Just as the city has invested in bricking our streets, putting our utilities underground and repairing City Dock, it is also our responsibility to restore the Market House.
Last year, Gone to Market offered to occupy the Market House under the existing layout, but the City Council made the right decision to reconfigure the interior, fix the building and do it right.
Some argue the city can no longer afford to invest in our Market House. I believe we cannot afford not to. There is no better investment we can make for our community and our economy than getting the Market House open. Nothing will say more clearly that Annapolis is once again open for business.
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The writer is the mayor of Annapolis.
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Copyright © Capital Gazette Communications, Inc., 2011.
