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Annapolis tenants tell committee abrupt Market Space lease cancellations risk jobs and seasonal revenue
Summary
Market Space restaurants told the Economic Matters Committee that the city’s recent nonrenewal notices — effective May 1 with leases running to June 30 — left tenants with little time to plan, threaten roughly 20 seasonal jobs at McGarvey’s and an estimated 75 jobs across businesses, and could reduce long‑term city revenue, administration said it will meet with tenants Monday.
Christopher Hannon, co‑owner of McGarvey’s, told the Annapolis Economic Matters Committee on May 6 that his business and four other Market Space tenants were notified the city would not renew their outdoor‑dining leases.
Hannon said his partner emailed intent to renew on April 21 and followed up April 28 after receiving no reply. On April 29 the administration acknowledged the renewal notice; the next day, he said, the tenants received an email cancelling the leases, and the official termination notice had an effective date of May 1 with instructions to vacate by June 30, the city fiscal‑year lease end.
“The city is unequivocally losing money by reopening these two parking spots,” Hannon told the committee, arguing the Market Space has become an economic engine that draws pedestrian traffic downtown. He said McGarvey’s employed roughly 20 additional seasonal staff for outdoor dining and estimated as many as 75 jobs across the Market Space restaurants depend on the program.
Committee members and staff described multiple, overlapping issues. Miss Leonard said the original Market Space leases were intended as temporary post‑COVID arrangements to be revisited once City Dock construction proceeded; she said administration is considering a different arrangement and hopes to have something in place by July 1, but no definitive plan had been provided to the committee at the hearing.
Miss Stewart (Economic Development) told members a meeting between the administration, Market Space businesses and City staff was scheduled for the coming Monday to discuss next steps.
On fees and the concession agreement, the committee discussed how daily rates are set. Miss Leonard said the concession agreement sets the daily rate at 10 times the hourly meter rate; using an hourly meter rate the committee discussed of $3.25, that would translate to about $32.50 per day under the concession benchmark. Hannon said tenants have been paying about $24.50 per day per space under the current arrangements and previously accepted $25.98 per space during the pandemic start‑up as a risk to test the concept.
Committee members asked administration to provide clearer outreach to tenants, clarify the timeline and any new lease terms, and consider a work session with business owners. The chair requested that the administration send an official termination notice and appear at the next committee meeting to brief members on progress.
Next steps: administration will meet with Market Space tenants the coming Monday; any new leases would require council review and approval, per committee discussion.
