Private developers want to renovate, operate Cross Street Market in Federal Hill

Two real estate developers have approached Baltimore officials about redeveloping Cross Street Market, a move that has prompted the city to issue a request for proposals for private control of the publicly owned Federal Hill market.

The board of directors of the nonprofit Baltimore Public Markets Corp. voted to support the city's request to issue the RFP on the condition that officials can ensure certain goals are met in revitalizing the hub of Federal Hill. Kaliope Parthemos, Mayor Stephanie Rawlings-Blake's chief of staff, said the city considers the RFP an opportunity to make capital improvements to the market and improve the vendor mix in a building that's seen as outmoded and dilapidated.

"We've been approached by [developers] who have expressed frustration with Cross Street both with vendors and capital improvements," Parthemos said. "I think it's clear from anyone who goes into the market that we can do better."

The city plans to issue an RFP at the beginning of 2015, Parthemos said. She declined to identify the developers who have approached the city, saying only that it was two people who inquired about privately controlling the market. ( Update: Arsh Mirmiran, a partner with Caves Valley Partners, has told the Baltimore Business Journal he is partnering with Scott Plank to redevelop Cross Street Market.)

She also said the board was "adamant" that the city retains ownership of the market building, and that it retain "the public nature of the market even if it is operated by a private group."

It's not clear how much money the city would seek under a lease agreement, but it may consider structuring the document to include profit sharing. The 27,500-square-foot market's building was constructed in 1952 after its predecessor burned down.

Kevin Litten covers Commercial Real Estate and Economic Development