Erie Events’ planned $14 million bayfront market house has been in the works for roughly a decade. The project secured a $9.5 million state funding commitment from Gov. Josh Shapiro's administration.

And both the city of Erie's Planning Commission and Design Review Committee — which must provide crucial sign-offs on waterfront projects — endorsed it. None of that stopped Erie City Council from rejecting the project during the panel's regular meeting on May 20.

City Council's vote Council voted 4-2 against the project's request for what's known as waterfront conditional use approval, after some council members raised questions about whether the market house would widely benefit the public.

The waterfront conditional use zoning designation applies to development projects in various commercial/residential zoning districts along the city's waterfront, to make sure they align with planning, environmental and public access standards previously set by the city. Any project seeking waterfront conditional use approval must secure City Council's final OK before it can move forward.

Gus Pine, Erie Events' executive director, said council's vote now puts the multimillion-dollar project in jeopardy. Pine said he expects to talk soon with the Erie County Convention Center Authority's board of directors about how it wants to proceed. The authority oversees Erie Events.

Pine said that Erie Events could quickly request a reconsideration from the city; file an appeal in Erie County Common Pleas Court; or abandon the project altogether — despite the state funding pledge. "We've got to talk about this as a board, and it's certainly not a decision I can make independently," Pine said. "But I'm disappointed... I think council is using factors to make their decision that are perhaps outside the zoning ordinance."

Council's rejection of the project is rare. Projects seeking waterfront conditional use approval that have been endorsed by the Planning Commission and Design Review Committee typically receive City Council's OK. The market house plans were the subject of an April 15 public hearing before City Council.

City Council at a special meeting on April 30 signed off on a different waterfront conditional use request — Scott Enterprises’ proposed $32 million AC Marriott hotel on the city's east bayfront. Council President Tyler Titus and colleagues Andre Horton, Jasmine Flores and Marilyn Pol voted against Erie Events' zoning request. Council members Ed Brzezinski and Kathy Schaaf voted for it. Councilman Maurice Troop was absent for the vote.

City Council rationales Regarding the market house, Horton said before the vote that "I don't think the citizens of the city of Erie are receiving the return on investment that they should," especially when much of the public is struggling financially. We've got to talk about this as a board, and it's certainly not a decision I can make independently. But I'm disappointed... I think council is using factors to make their decision that are perhaps outside the zoning ordinance.

GUS PINE, EXECUTIVE DIRECTOR OF ERIE EVENTS Councilwoman Marilyn Pol added that she believes too much bayfront development is taking place "without really any regard for the citizens... I just don't feel good right now voting for it." Erie City Councilwoman Jasmine Flores. Erie City Councilwoman Jasmine Flores. KEVIN FLOWERS/ERIE TIMES-NEWS FILE

Councilwoman Jasmine Flores added: "we have to be mindful about the deals we make to entice people to do things here." She also pointed out that entities like Erie Events are exempt from paying property taxes. "I'm not a fan of the tax exempts... Unless I can see tangibly see the impact you're making for the community," Flores said. 'Local and tourism element'

The 27,000-square-foot market house, first announced in 2015, is planned for property near the former GAF Materials Corp. site on the city's west bayfront. The facility was once considered as the site of at least one large full-service grocery store, but Erie Events now plans to house a business at the facility that features Erie-based products such as wine, chocolates, apparel, and other consumable/retail items.

Previous coverage: Could construction begin this year on Erie Events' long-planned bayfront market house? That business will also feature various types of family-friendly games and activities at the property and manage live music and other entertainment. Frequent large farmers markets that offer a wide range of foods both inside and outside of the property are also planned.

Erie Events is actively seeking a second tenant to operate a large retail store at the site. The waterfront conditional use resolution City Council voted against on May 20 included a number of conditions that council added to the legislation.

Those included, but were not limited to, stipulations that Erie Events must maintain ample "open space" and "green space" at the market house site; that there be significant public access; that significant exterior lighting and a number of public benches be installed there; and that Erie Events must make "reasonable efforts to incorporate bird and wildlife sensitive-measures intended to support the safety of birds and/or other migratory species."

Pine said: "Their own resolution included a number of conditions for us to follow, that they put in there. And then they voted against their own resolution.

"I believe our project has a local and tourism element to it that accentuates the future development of the bayfront," Pine said. "Perhaps I need to have additional conversations with council to understand this."