Sweetheart Deals For Downtown Businesses Not Unheard Of

| February 14, 2011 | 4 Comments

Tonight, the Annapolis City Council is prepared to vote on the Market House. Specifically on a lease that will allow Gone To Market, LLC  to develop and manage the structure for up to 30 years.

There has been much discussion on the lease and how it is is too one sided in favor of the developer. Critics have lambasted the City for not earning money  from the property and for considering a half million dollar renovation to facilitate Gone To Market’s move in. While Mayor Cohen continues to profess that this will be the fulcrum for downtown rejuvenation.

Sweetheart deal or not, te Market House is not the only local icon to have a lease from the City. While it certainly is not the same, Mike Ashford signed a 40 year lease for McGarvey’s on September 11, 1978.

Here are some basic differences between the two:

Gone To Market McGarvey’s
Rent Yes-based on profit Yes-minimal, with escalation
Renovations No Yes
Term 30 years 40 years
Taxes No Yes
Maintenance Some Yes
Insurance Yes Yes
Structural Responsibility No Yes
HVAC No Yes
Easy Out Yes No

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Category: NEWS, OPINION

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