After years of escalating tensions between city leaders and the Baltimore Office of Promotion & The Arts, Mayor Brandon Scott dealt a significant blow to the embattled arts organization Wednesday evening, announcing a plan to dissolve ties with the group by early next year.

The move was swift, but not altogether unexpected. Scott and the quasi-governmental nonprofit, responsible for arts festivals including Artscape, have been at odds for much of his time in office, fueled by a pandemic, canceled events and a trademark dispute. In the last few weeks, the row has intensified with the revelation that the arts organization is in financial peril.

If you haven’t been glued to the saga, here’s a crash course on the origins of the dispute and what it could mean for some of Baltimore’s most beloved festivals.

How did we get here?

Scrutiny of BOPA, which was formed decades ago under Mayor Martin O’Malley, intensified amid the coronavirus pandemic, when the group was forced to scale back public events and saw staff numbers dwindle.

Members of the City Council balked at the organization’s continued spending during that period when Artscape, billed as the nation’s largest free outdoor public celebration of the arts, was canceled or scaled down. Artscape was canceled in 2020 and 2021, and was held virtually in 2022.

A growing rift between the arts organization and the mayor’s office bubbled to the surface in 2023, when BOPA announced it would not be staging its annual Martin Luther King Jr. Day Parade for the third consecutive year — a decision the group’s leaders pinned on Scott. Scott responded by calling for the ouster of then CEO Donna Drew Sawyer (she resigned days later with a hefty severance payout) and Scott poached a member of BOPA’s staff to serve as a liaison between the administration and the organization.

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Dissatisfaction with the arts group lingered, however.

In May 2023, city attorneys revealed they had blocked an effort by BOPA to trademark the Artscape name. A month later the City Council voted to withhold $1.7 million from BOPA’s budget until the agency could demonstrate that it was addressing concerns raised by city leaders. The budget was restored in quarterly installments only after leaders received assurances that “demonstrable” progress was being made by the group.

What’s the latest flap with BOPA?

Budget records showed BOPA was steadily regaining financial footing, but an accounting firm hired by the organization found otherwise.

In September, BOPA’s board was summoned to an emergency meeting to discuss a mounting deficit with the potential to reach $650,000. Interim board chair Andrew Chaveas said in an email prior to the meeting that BOPA had for years shifted money from reserves to cover expenses and “reflect a balanced book.” Those coffers were not replenished.

Struggling to pay the group’s employees, CEO Rachel Graham requested a $1.8 million bailout from the city. Scott responded with his own request: an independent, forensic audit of the group.

After meeting several times but taking no action, BOPA’s board voted Wednesday to lay off staff as a means to stem some of its losses, the first concrete steps it had taken to reduce expenses. BOPA employs at least 22 people, has a downtown office and manages several other city-owned or leased properties, including the Bromo Seltzer tower.

A spokeswoman for BOPA did not respond to a question Thursday about which employees were laid off.

The staff changes proved too little to satiate the Scott administration. The mayor announced Wednesday evening that the city would end its contract with BOPA effective Jan. 20.

“Persistent financial difficulties that have come to light in recent months have led us to conclude that this is the best course of action to ensure the long-term sustainability of our city’s arts and cultural programming,” Marvin James, Scott’s chief of staff, wrote in a letter to the group.

Now what?

While acknowledging that the termination of the contract will be an “intricate process that will require cooperation,” the Scott administration has not yet outlined a formal plan for how the next 90 days will proceed.

An internal memo written by the administration in 2023 shortly after Sawyer’s exit outlined two potential options to address concerns with BOPA. One called for giving the mayor’s office temporary control of the organization until a new CEO could be selected. A second would redirect all of the funds BOPA received from the city to a wing of the mayor’s office and other organizations to put on BOPA’s signature events. BOPA receives most of its $4.7 million budget from the city.

A spokesman said Thursday that the city is not ready to outline a plan, but reiterated Scott’s commitment to the arts.

“The mayor’s support for artists and the arts community has always been clear, and it is critically important to know that the decision to terminate the contract with BOPA is not a departure of that support, but only a change in form,” the office said.

What does this mean for city festivals?

So far, Scott has stopped short of guaranteeing Artscape and other BOPA-organized festivals will go on, but the letter to BOPA from his chief of staff speaks of ensuring a “smooth transition” for BOPA programming, specifically Artscape and the Baltimore Book Festival, as well as New Year’s Eve and Fourth of July celebrations.

The letter also outlines to the mayor’s “intention” to continue operation and maintenance of the community arts center at the Bromo Seltzer Arts Tower, School 33 Art Center and The Cloisters, a historic event space in Lutherville.

Grant programs for local artists and art organizations currently distributed by BOPA will also continue, according to the letter. Baltimore budgeted more than $8 million in arts and culture grants for the current fiscal year.

“The city’s desire is that there’s no disruption in the services provided to the arts community and the broader public, including artist grants and programming and major events like Artscape,” the mayor’s office said.

Graham told media Wednesday BOPA intends to stage the city’s New Year’s Eve fireworks as planned. The board will meet again in December.

The 2023 internal memo suggested splitting off the BOPA-run Bromo Seltzer Arts Tower, The Cloisters Castle in Timonium and the Baltimore Farmers’ Market. And the city could contract with another group — Visit Baltimore and Live Baltimore were named — to run events like Artscape, the Baltimore Book Festival and Light City.