[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6469005,"mediaKeyId","5781366-aa932fce1715deec5783d62d51faacc2","parentId",5781366,"title","Committee pauses Market House lease negotiations, asks for performance and rent clarifications","audioSeconds",1992,"startMs",783000,"endMs",2775000,"viewUrl","/Search/View?dp=1&key=5781366-aa932fce1715deec5783d62d51faacc2&start=783&end=2775","thumbnailUrl","https://assets.pipeline.soar.com/5781366-aa932fce1715deec5783d62d51faacc2/thumbnail_783000.jpg","articleUrl","/articles/6469005/Annapolis/Anne-Arundel-County/Maryland/Committee-pauses-Market-House-lease-negotiations-asks-for-performance-and-rent-clarifications","mediaUrl","https://secure.pipeline.soar.com/6469005-619f0969513bf5d910fd5d1add7dd959/orig.mp4?Expires=1771149579&Signature=NhHUW-dY-dtPUVAZWk2VjH0EIL3dz4xYAZir~mHswyAY-3Bhw5No-1cR0xd3MabYWg3IibM4Xnis3O-i5upTv36FHoLUTGXzs0q7nNI1PONtH~ohAi3x4Na1403-duevaaKXcfhShgirk-gqE7UZD7i7mNmozhOt6OJ5LO-KZzkokSAHCkzhiIrNGcfvMYOdU-3TsGZGSAR~Z7fEQ2LYVFvh0n30MriaaWFgXud6OccRitTiJZaDqwJmkjRBy4qxyWspInPHsg0BhQLk4SB40y7t8vNFuZUh~d1Ndf0e5sdep7KFZ0~VOvkHm3xwaVB3xrROspyzQj0Zq2Cpy8tolg__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Annapolis, MD","date","2025-09-18T00:22:37.407Z","article","The Economic Matters Committee on Sept. 17 voted to postpone consideration of O-33-25, a proposed long-term lease for Market House, until the committee’s October meeting so staff and the tenant can negotiate amendments on renewals, rent escalators and performance metrics.

Assistant City Attorney Ashley Leonard presented the draft lease and said it is based on the current agreement but includes several substantive changes. The new draft would set a five-year initial term with three unilateral five-year renewal options exercisable by the tenant unless in default; the draft removed the previous unlimited extension language.

Under the draft, base rent was increased from $8,000 to $10,000 and would rise 5% at each renewal (every five years). The lease would also include performance rent equal to 1% of cumulative annual gross revenues over $1,500,000 — a reduction from the existing 2% rate. Leonard said the finance director reviewed the change and calculated that, for FY 2025 receipts, the new arrangement would have produced about $20,000 more in base rent despite the lower performance percentage.

Committee members pressed for stronger performance metrics and for mechanisms to ensure tenant-funded infrastructure improvements. Alderman Huntley asked that renewals be mutual rather than unilateral, and requested either a higher base rent or a higher performance-rent percentage and an inflation-based escalator. Chair and other members suggested tying some renewal rights or rent escalators to specific investments — for example, restroom upgrades or geothermal and HVAC work the tenant has described as priorities.

Leonard said the draft permits the tenant to sublease portions of Market House with the city’s prior written approval, requires the tenant to ensure subtenant compliance with the lease and laws, and allows the tenant, if it coordinates and pays for certain city maintenance tasks, to take the costs as a rent setoff. She also described more flexible financial documentation for calculating performance rent: instead of a highly specific custom audit, the tenant could provide standard audited financial statements and supporting tax returns or other documentation the city reasonably requires.

Alderman Savage said he supports keeping the current operator but wants stronger assurances that significant building upgrades will be prioritized if the city grants long-term rights. \"If we are gonna commit to giving this essentially, allowing them to continue to operate Market House for 25 years, I feel like … we should tie some of the renewals to performance standards,\" he said.

After discussion, Chair asked for a motion to postpone action until October; the committee moved, seconded and approved the postponement by voice vote. Staff will return with negotiated language addressing mutual renewals, CPI-based escalators and possible performance-linked renewal criteria.

Ending: Committee members asked staff to present proposed amendment language in October; the committee also requested that finance return with detailed rent- and performance-impact analyses before the item returns for a vote.","mediaType","Video","parentTitle","Economic Matters Committee September 17 2025","oneSentenceSummary","The Economic Matters Committee postponed action on O-33-25, a proposed long-term lease for Market House, after lengthy discussion about term length, rent structure, performance rent, and tying renewals to infrastructure improvements. The committee asked staff to return in October with negotiated amendments.","taxTitle","Annapolis, Anne Arundel County, Maryland","taxId",59348,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6469010,"Committee backs new leases for fall and spring Annapolis boat shows through early 2030s",552,230000,782000,"/Search/View?dp=1&key=5781366-aa932fce1715deec5783d62d51faacc2&start=230&end=782","https://assets.pipeline.soar.com/5781366-aa932fce1715deec5783d62d51faacc2/thumbnail_230000.jpg","/articles/6469010/Annapolis/Anne-Arundel-County/Maryland/Committee-backs-new-leases-for-fall-and-spring-Annapolis-boat-shows-through-early-2030s","https://secure.pipeline.soar.com/6469010-39392b5102bbfd0f91374d076c5d549e/orig.mp4?Expires=1771149579&Signature=bzVRCK9Rrl6kbtLLBQUNxFhb6Gk6wH6Fb7EzsFq90eP44qtzFpd9XzNrRtfAw1UujUvs5nVSSrZPy0g5lFeV-lU~fKiOJ8vKLJpjDI8ECagILXzGRSbGnQs4bo6npXNTFAhq4M-AQuUaTBWhPkWK-isW5a9riinWurlpEltJEa8Mnq5b3aD41nZQXiV8XAuVmfHQIy3KVKXhLzip0N51aub9sUbIjpQQEee7MoT4uWqGCzUxhIbNeL9h1t0wuf5lx3mMMUuiGooPaoQAGZOnYLyoYuVy-EWz78HJAvsETTgH2zbyPWyiQkGXf66HF1eGCYPcUQ71uAs2FsyrcEiJpQ__&Key-Pair-Id=KUT5TJCACFTXG","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.","Annapolis’ Economic Matters Committee gave favorable recommendations to two new calendar-year leases for the fall and spring boat shows, approving flexible terms and rent structures that preserve the city’s revenue share and add clauses to handle construction impacts.","actionData","errors"]

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Committee pauses Market House lease negotiations, asks for performance and rent clarifications

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