The firm that signed an agreement with the city to overhaul and manage Cross Street Market in Federal Hill said Wednesday it would walk away from the deal.
The decision to unwind the November agreement would put an end to more than two years of planning, which had turned more confrontational in recent weeks as merchants sought compensation from the city for the costs of closing or relocating during construction.
The neighborhood had long called for improvements to the institution, which was dark and increasingly plagued by vacancies. But there were concerns the improvements would bring national chains and vendors focused on alcohol, an unwelcome presence in a neighborhood weary of bars.
Members of the General Assembly representing the area emailed stakeholders a draft bill late last week that would impose a $50,000 annual fee on a liquor license for the market. The legislation would also limit liquor sales at the market to beer and wine for at least two years after it reopened and forbid alcohol sales after 11 p.m.
The Horseshoe Casino pays $15,000 a year for its round-the-clock liquor license.
Caves Valley Partners developer Arsh Mirmiran said the project always had thin margins, making an agreement difficult.
As the city prepares to turn Cross Street Market over to a private company to redevelop and operate the facility, merchants who will be displaced by the project are seeking compensation.
Towson-based Caves Valley Partners is slated to take over the market in January and begin $6.5 million redevelopment…
As the city prepares to turn Cross Street Market over to a private company to redevelop and operate the facility, merchants who will be displaced by the project are seeking compensation.
Towson-based Caves Valley Partners is slated to take over the market in January and begin $6.5 million redevelopment…
"It has become evident to us that perhaps we misread the desire and the will to fully transform the Market and that the vision we created was not one that was shared by as many as we hoped or believed," Mirmiran said in a statement. "We will be keenly interested to see the refined vision for the revitalization of the Market, as dictated by the merchants and the surrounding communities, as well as how and when it can receive the attention it desperately needs.
"We genuinely hope that all of the support for the merchants does not wane and that the momentum leads to positive results for all involved."
This is a rendering of the plans for a renovated Cross Street Market. The image is courtesy of Caves Valley Partners.
This is a rendering of the plans for a renovated Cross Street Market. The image is courtesy of Caves Valley Partners.
The agreement approved by the city’s Board of Estimates in November went into effect Jan. 1. The Baltimore Public Markets Corp., the nonprofit that runs the city’s markets, said Wednesday it had agreed to terminate the deal at the request of Caves Valley, effective March 1.
"In light of today’s announcement, BPMC will need time to regroup and consider next steps for developing an action plan that will have the best interests of both the community and merchants in mind," communications manager Stacey L. Pack said in a statement.
The city in 2015 asked for proposals from developers for the market, responding in part to interest from Caves Valley, which is working on the large Stadium Square redevelopment nearby. Pack said also said improvement to the market were not something the markets corporation could "accomplish on its own."
Caves Valley, at the time working with Scott Plank’s War Horse LLC, was the lone respondent to the request for proposals. War Horse withdrew from the plan last year.
The agreement called for a $6.5 million renovation, including $2 million in public funding.
Caves Valley, through an affiliate, agreed to make $10,000 monthly payments and split profits 50-50, after repaying its bank loan and an 8 percent return on Caves Valley’s initial equity investment. The lease was good for 15 years and could have been extended for up to 50.
Baltimore City Councilman Eric Costello, who represents the area and previously led one of its neighborhood associations, said he was "profoundly disappointed and really sad."
He said he’s not sure what happens next.
"This was a very complex deal," he said "The likelihood of putting a similar deal … together — there’s a very low probability of that. This was our opportunity."
Under the administration of former Mayor Stephanie Rawlings-Blake the city wanted the private sector to take a greater role at public markets in some neighborhoods. Last year the city invited bids for markets in Fells Point and Hollins Market. Responses are due this month.
This story will be updated.
nsherman@baltsun.com
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