There may still be hope to keep Erie Events’ Bayfront Market House project “on track” after a 4-2 vote by Erie City Council last week threatened to derail the development.

The proposed $14 million Market House project is now in limbo after council rejected the conditional use ordinance needed for construction to move forward.

The vote surprised even Erie Mayor Daria Devlin, who said she expected opposition from at least one council member but did not anticipate additional “no” votes.

“We had discussed it in caucus — certainly Councilor Horton had made his objections clear — but I was surprised when the vote started that there were additional no votes,” Devlin said.

The proposed Market House would be built on property owned by Erie Events just south of the Bayfront Convention Center parking lot. The project is designed as a mixed-use public market featuring private tenants.

Despite the setback, Devlin says she is now working to broker a compromise that could bring council members and project supporters back to the table.

“I’m confident that together we can come to a resolution that council can show they heard the residents, we’re working on an agreement and Erie Events can still move forward with the project,” Devlin said. “We still have time, and I’m really asking the parties to come together and work with me on a resolution.”

Supporters of the project argue the Market House would still generate tax revenue for the city and county, even though Erie Events itself is tax exempt.

Gus Pine said businesses operating inside the Market House would pay taxes much like other privately operated businesses on Erie Events property.

“We plan to operate this with tenants — those tenants will pay taxes similar to the Cove restaurant,” Pine said. “It is within our parking ramp that we own, [but] the owner of that business pays city and county tax.”

According to Pine, the ordinance crafted by council already included protections for public waterfront access, environmental concerns, and architectural design standards.

Now, Erie Events is waiting for council members to provide a formal explanation for their opposition by June 1. Pine says he is also hoping council may reconsider the vote.

The stakes are high for the project. If it is abandoned, Erie could lose $9.5 million in state R-CAP funding secured through Pennsylvania Governor Josh Shapiro. Pine warned the money would likely be redirected to projects in other communities.

“We have to keep moving or we have to abandon the project,” Pine said. “And if we have to abandon the project, we have to call the governor and tell him thanks but no thanks — and I think that’s going to be a very negative thing for the entire community.”

At this point, a revote by council, an appeal in Common Pleas Court, or abandoning the project altogether remain the primary options moving forward.

City Council President Tyler Titus told Erie News Now several possible paths are being reviewed, including the possibility of bringing the ordinance back for another vote.

Titus said discussions are underway between the city solicitor and Erie Events’ solicitor as mayor Devlin presses for a compromise to keep the project alive.