Caves Valley Partners signed an agreement with Baltimore City to revamp Cross Street Market in Federal Hill in November amidst much pushback from vendors and those who live in the area.
But on Wednesday, it scrapped the deal.
"We are all excited to have our jobs which is always good news but we're also looking at this as an opportunity for this issue to be revisited," said vendor Ana Epsilantis.
Even though many welcomed a facelift, long-time merchants worried they would lose their place to chains and alcohol driven businesses.
The renovation would have cost $6.5 million.
City Council leaders say $2 million in capital funds were dedicated to the redevelopment and some are not happy the deal fell apart.
"This is something that we've been working on for a very long time and this goes back to my days as a community association president," Councilman Eric Costello said. "The city went through over two years of negotiation to get us this far."
In a statement, Mayor Catherine Pugh said:
Baltimore’s public markets are important to celebrating our past, and play a critical role in Baltimore’s future. The Baltimore Public Markets Corporation is reviewing its options and will reengage the community to fulfill the vision for Cross Street Market. Public-private collaborations will be key, and I want to see Cross Street Market become what the community wants and certainly deserves.