Outdoor dining lease agreement for 5 downtown Annapolis restaurants is expiring

The city of Annapolis says outdoor dining in Market Space is not going away, but the current lease agreement covering five downtown restaurants will expire June 30 and will not be renewed in its current form.

Instead, city leaders said they are working toward individual street cafe leases for each business while balancing upcoming construction, public safety concerns, and major events downtown.

The city said the current leases remain in effect through the end of June, and leaders hope to have new agreements in place that allow outdoor dining to continue through the summer and into the fall.

What the new lease arrangement means

Annapolis Mayor Jared Littmann said the city's current temporary lease arrangement ties all five restaurants together under one agreement, and officials want to move toward more flexible individual leases.

"Rather than just renew that lease, we wanted to separate from that agreement to establish a new plan going forward," Littmann said.

City leaders say several issues must be addressed as part of the transition, including the Annapolis Boat Shows contract for Market Space this October, ongoing City Dock resiliency construction, winter snow removal, and public safety concerns.

Littmann also said the current layout can make it more difficult for pedestrians and non-dining visitors to move through the area.

"What we're envisioning is still having a plaza format without cars going through but opening up the area," Littmann said.  

Outdoor dining has been a revenue boost

Since the COVID-19 pandemic, Market Space has transformed into a dining area lined with outdoor tables, becoming a major draw for visitors and residents.

"The outdoor dining is what the guests coming to Annapolis want," said Jeremy Black, managing partner of Federal House.

Black said outdoor dining has helped businesses increase revenue and staffing.

"We get to employ more folks, we get to take care of more families due to that outside dining," Black said.

Restaurant managers say they hope any new agreement preserves the outdoor atmosphere customers have come to expect in downtown Annapolis.

"I think we've proven over the last six years that they want to sit outside," Black said.