City To Borrow Additional $10 Million
In a surprise move, Annapolis Mayor Joshua Cohen introduced a Charter Amendment tonight to authorize the City to secure a $20 million dollar line of credit. This will be an additional $10 million on top of the loan the City has already approved. Undoubtedly this is a result of the cash crunch announced by Tim Elliott two weeks ago. At that time, he predicted the City would be facing a deficit of $4 million by the end of the first quarter of the fiscal year.
This Charter Amendment will be pushed through very quickly with public testimony being sought on Thursday with a vote to follow. Sources close to the Mayor’s office have indicated that not all of the Aldermen were aware of this pending legislation; yet the Mayor feels he has enough votes to pass it on Thursday.
Market House Negotiations
And in some not so surprising news, the Mayor announced that the City has entered into negotiations with Lehr Jackson for the lease and management of the Market House. This was rumored to be true and somewhat confirmed by the City’s PIO last week, but denied by the Mayor. Eye On Annapolis reported something was fishy when we discovered that Lehr Jackson had not even set themselves up as a legal entity until well after their proposal was submitted.
City PIO, Phill MCGowan told Eye On Annapolis that the City was also going to be engaging outside counsel experienced in commercial real estate leasing to facilitate the negotiations.