The Seaport Farmers’ Market has entered a transitional phase, as new owners take over and the former co-operative wrangles with $12 million in debt and ongoing lawsuit.

The co-operative met Tuesday and voted in favour of surrendering its lease to its landlord in an effort to keep the market operational while it deals with financial troubles.

Members of the City Market of Halifax Co-operative will hand over the business to the Halifax Port Authority, rejecting the option to seek creditor protection for 30 days.

“The Halifax Port Authority is going to continue in the spirit of what the farmers market is going to be, but they are going to bring with them the management experience, the governance experience and the operational experience that’s required to run such a massive building and a massive organization,” Co-op chair Chris de Waal tells News 95.7.

The co-op is in debt by as much as $12 million and is facing a lawsuit.

Retail Construction Specialist Inc., the main construction company in the development of the facility, is suing for $220,000, alleging unpaid fees and interest.

“The Co-op is probably going to be facing some sort of dissolution, bankruptcy, going off into the ether,” said de Waal. “That was why the decision was so tough. At the end of the day the members voted for what was better for the market if not for the co-operative.”

District 12 Coun. Dawn Sloane says the handful of local markets across the HRM face constant pressure from national grocery stores.

“The problem is, we have large grocery stores that do not really buy our local produce, so it’s easier for the farmers to go to the market to sell right to the customer,” she said. “The market will dictate whether people want local food or not, and I think that there’s a big outcry out there for local food.”

Paul MacKinnon, director of the Downtown Halifax Business Commission, says the city could support a market, but the onus is on consumers to spur demand.

“It’s going to take a bit of a shift in our consumer habits,” he said. “All of us as citizens of Halifax and Dartmouth, if we want to keep that market there, we have to be shopping there.”

He adds the Seaport Farmers’ Market is likely in good hands under its new ownership.

“It’s felt that the Port [Authority] can help to stabilize things. Obviously, being a Crown corporation of the federal government, they’ve got some deep pockets.”

When the new market was announced in 2007 is was unveiled as a state-of-the-art facility. Since then, it has struggled with customer volume and a challenge from the market in the nearby Keith’s Brewery.