Big Box Store, Charter School Delay Redevelopment Plans At MD Mall

Editor's Note: This is the second story in a three-part series on the future of the Annapolis Mall. Part one focused on business goals for the new mall owners. The final section will cover the potential for housing at the mall.

ANNAPOLIS, MD — A supermarket said it will not replace JCPenney at the Annapolis Mall, casting further doubt on a previous proposal to close the department store and convert it into four storefronts and a gym.

Patch confirmed that Grocery Outlet does not plan to open in the JCPenney space, which had been set to close this spring, and is instead committed to remaining open through the summer.

"The location here will not be moving forward at this time, but customers can still find the unexpected at any of our other locations in the Maryland area," Grocery Outlet told Patch in an email.

The Annapolis Mall is amid a revamp under its new ownership. Purchased last summer by Dallas-based Centennial, the mall now eyes experiential businesses and luxury retailers. Centennial is also considering building housing outside the mall.

Related:

• Annapolis Mall Sees Luxury Brands, Entertainment As Keys To Growth
• Housing At Annapolis Mall Could Create 'Live, Work, Play' Community

The JCPenney project was the mall's second redevelopment proposal to change course recently.

The New Village Academy charter school canceled its planned opening at the mall, citing increased construction costs, federal funding cuts and tariffs.

JCPenney Redevelopment On Hold

The mall owns the land beneath JCPenney, but a third party owns the building itself and could convert the space if desired.

Realtors previously released proposal drawings showing a Grocery Outlet, a Hobby Lobby decor store and a Onelife Fitness gym moving in. The reimagined footprint had room for two additional storefronts, with the tenants listed as to be announced later.

Realtors from the firm marketing the redevelopment, Bethesda-based H&R Retail, declined to comment to Patch. Onelife Fitness also declined to comment but asked to circle back when it has information to share. Hobby Lobby did not respond to Patch's request for comment.

The future of the redevelopment is not yet known, as JCPenney wants to stay at the mall for the long haul. The legacy retailer initially planned to close in mid-May, but it will now remain open through at least Aug. 31.

"Although previously announced that the JCPenney store at the Westfield Annapolis Mall in Annapolis, MD, would be closing its doors by May 16, 2025, we are excited to announce that we have agreed [to] a lease extension," JCPenney told Patch in an email.

JCPenney said it is "continuing negotiations with our landlord for a new long-term lease."

"At this time, the store liquidation event has been stopped," JCPenney said on April 29. "We are optimistic that we can come to an agreement that will suit all parties involved, and that JCPenney can continue to serve our loyal customers in the Annapolis area for years to come."

JCPenney previously planned to lay off 74 employees, but it's once again hiring at the Annapolis location.

Annapolis Mall General Manager Mariah Michaud promised to share transparent updates as they're available.

"We typically do not comment on the business decisions of individual retailers," she said of JCPenney in a statement after its lease extension. "We do not have control over their operational decisions, but we're pleased to see their continued presence as part of the overall retail mix."

Canceled Charter School 'Heartbroken'

The New Village Academy planned to open this August above The Container Store, but its Governing Board voted April 16 to call off the opening.

New Village Academy had already delayed its opening once. It was initially supposed to launch in August 2024, but the mall's then-pending sale stalled lease negotiations.

The academy would have selected students via a lottery and operated under Anne Arundel County Public Schools. It promised experience-based learning and "high school done differently."

"We are heartbroken," Head of School Romey Pittman said in a press release. "This school was designed to give our community's young people the will and the skill to take charge of their education and their future with Annapolis as their classroom. While the current administration's policies have impacted families and organizations across our county and the country in far more harmful ways, we are devastated by the loss of this innovative opportunity for Anne Arundel County youth."

A $5.8 million construction loan was needed to get the school off the ground, a memo said.

The memo said construction costs, however, ballooned by $900,000. It pointed to "new tariffs, economic instability, and the need for a very short 'Summer Slam' project with double shifts and overtime."

The memo added that the academy's partner and subtenant, a school-based health clinic, backed out in February "because of the massive upheaval in federal funding, which made building and launching an expensive new clinic too risky."

The memo said one nonprofit lender, "vulnerable because their federal backing came from the Department of Education," dropped their support for the academy. That left a $2.9 million budget gap that proved insurmountable.

"While plans have shifted, we are always looking for additional ways to engage with the community, some are already in the works," Michaud said in a statement after the school canceled its opening, pointing to an ongoing expansion to the mall's public library branch. "This project will bring new opportunities, resources, and programming to the community, and we look forward to supporting the Library as it continues to grow and serve as a vibrant hub for learning and connection in the Annapolis community."

Related:

• Annapolis Mall Sees Luxury Brands, Entertainment As Keys To Growth
• Pollo Campero Opening Chicken Restaurant Soon Outside Annapolis Mall
• Annapolis JCPenney Won't Close In May, Will Stay Open Through August
• Charter School Cancels 2025 Opening At Mall Amid Trump Cuts, Tariffs
• Forever 21 Closure Date At Annapolis Mall Announced Amid Bankruptcy
• Retailer JCPenney To Close MD Location In 2025
• DICK'S, Dave & Buster's Opening At Recently Sold Annapolis Mall
• Annapolis Mall Sold Amid Changing Retail Scene: Report