Committee backs new leases for fall and spring Annapolis boat shows through early 2030s

The Economic Matters Committee on Sept. 17 gave favorable recommendations to two new city leases that would govern the fall and spring Annapolis boat shows from 2031 through the mid-2030s.

The committee voted to recommend O-32-25, the lease for the fall boat show, and O-36-25, the lease for the spring boat show, after city staff and show organizers described the agreements as substantially similar to the existing contracts but updated to reflect recent operational experience and ongoing construction near City Dock.

The new leases keep the existing rent structure — a minimum base amount plus a percentage of gross revenues — and maintain the city’s incorporation of fees and annual escalators, city attorneys said. Ashley Leonard, assistant city attorney, said the draft adds flexible language to adjust move-in and move-out dates and to modify the leased premises if construction around the dock affects operations.

Mary Hewinson, president of United States Yacht Shows, described the payment flow for the shows: the city receives 50% of ticket receipts after the 10% admissions-and-amusements tax is deducted, and standard fees are deducted before the city’s share. "Last year for the fall, our fall check to the city after fees were removed was $529,365 for the three weeks that were at City Dock," Hewinson said. She said the spring payment was $36,196.59.

Committee members asked about term length and construction contingencies. Leonard said the fall-show lease (O-32-25) is structured as a calendar-year initial term for 2031 followed by five separate one-year renewal options and an optional four-year extension period that in practice could run up to 10 years of renewal rights. She said the spring-show lease is materially the same but with different exhibit dates and premises tailored to the spring event.

Committee chair (presiding member) asked for a favorable recommendation on both items; Alderman Savage moved the motions and the committee approved both by voice vote.

The city and show operator also expanded force-majeure language to address possible parking-management changes or construction delays, and they moved certain date details into exhibits so the parties can adjust dates without renegotiating the principal lease terms.

The leases will return to the full council for final action after the committee’s favorable recommendations.

Ending: Committee members praised the shows as economic drivers while noting the need for flexibility during the City Dock construction. No dollar estimates of total local economic impact were offered in the meeting beyond the ticket-based payments; organizers said the last comprehensive economic study is several years old and that newer third-party estimates were not provided at the hearing.