The popular Mill Market at 35 Canal Drive will be operated by a new non-profit vendors' group under an arrangement being negotiated by city staffers.
If the deal is finalized, Mill Market Inc. will continue operating the waterfront market until May 18, when the vendors are expected to take over.
As a non-profit entity, the vendors' group will be eligible for funding for things like internships and capital upgrades that aren't available to the current private-sector owner.
"The Mill Market has proven to be a very popular addition to the community and receives up to 3,000 people on Saturdays throughout the summer months," says Tom Vair, the city's deputy chief administrative officer for community development and enterprise services.
Mill Market Inc. started running a farmers' market in the old municipal fish hatchery in February, 2014.
The arrangement was always intended to be temporary, with a long-term goal of moving the market to a permanent home in the former St. Mary's Paper board mill.
Mill Market Inc. was given a five-year contract that allowed it to use the hatchery site rent-free until the board-mill location was ready.
The company was expected only to pay taxes assessed on the hatchery property, and to eventually demolish the structure.
The five-year contract with the city expired on March 31.
Mill Market Inc. says it's made only enough to cover the market's operating expenses.
It owes $76,500 in back taxes on the property, and about $25,500 in provincial fines for building infractions.
Under the new deal being negotiated, that amount would be reduced by approximately $50,000 in exchange for market assets including a walk-in freezer, tables and other considerations.
The remaining $52,000 owing must be paid in two instalments, one due at the end of May, the other at the end of August.
"A negotiated agreement will see the market operated by Mill Market Inc. until May 18, when the non-profit group is established and able to take over operations," Vair says.
"This avoids the need to close the market for a period of time or the city attempting to take over operations until May 18."
The new owners may need financial support and would likely directed to the municipal economic development fund.
The Mill Market transition is on the agenda for Monday's meeting of City Council.
The meeting will be livestreamed on SooToday starting at 4:30 p.m.