ALBANY - One of the last few chain establishments in the South End will not renew its lease come December.

The McDonald’s at Madison Avenue and South Pearl Street will shutter after its lease with the Albany Housing Authority expires Dec. 14, said city officials. A statement from the chain Thursday did not give a specific reason.

The fast food franchise struck an agreement with the housing authority in 1992, and two years later the city’s historic preservation panel approved plans for a red-and-white neon McDonald’s sign at the heavily traveled intersection.

The community had pushed back against the building’s design, concerned it would detract from the nearby Historic Pastures neighborhood, which is the oldest neighborhood in the city and its iconic buildings are across from the eatery.

Dialogue on what the site could be used for in the future are in the beginning stages, said Brian Shea, Mayor Kathy Sheehan’s chief of staff. “The city is working with the housing authority and others to map out the future for that parcel,” he said.

Calls to housing authority Executive Director Steve Longo were not returned Thursday.

The franchise’s plans to vacate follows that of several establishments in the South End recently. In late 2018, a Rite Aid pharmacy and a Stewart’s Shops in the neighborhood closed.

The state Department of Motor Vehicles also left its site at 260 S. Pearl St. in the South End. The Albany County-owned building is being retrofitted for the county Board of Elections to move into the space later this year.

Common Councilman Derek Johnson said he's disappointed to see another business leave the community he represents.

“They’re just stripping us of everything,” he said. “This is the signs of pre-gentrification, that’s what we feel. We have no gas station, the Rite Aid is gone, DMV left, a couple of neighborhood stores are no longer available to us.”

Johnson worries the changes may not benefit the people who have lived in the community for years, instead preparing for people who may move into the Albany neighborhood.

“I would hope that this change would be beneficial to the people of the current neighborhood,” he said. “It’s only going to be good if it’s purposeful for the people who are current residents. It wouldn’t be good if it’s geared up for all new people.”

Others see the fast food business’s departure as an opportunity to gain control of the property and build wealth within the community.

Jahkeen Hoke, executive director of AVillage, Inc., a grassroots organization in the South End, said the spot is ideal for mixed use development that would have community ownership.

“It opens up the opportunity for people to create ground level services and amenities for the people who live in the neighborhood surrounding them,” Hoke said. “We could be part of the change and derive economics from it. Not just verbal or visual ownership, but physical and financial ownership of the changing city.”

The South End Community Collaborative, a coalition of local organizations and residents, continue to discuss the possibility of bringing a grocery store to the area. There are few stores that provide healthy food in the community, with the closest grocery store on Delaware Avenue - a hike uphill for those living in the lower South End.

County Legislator Sam Fein, who represents the area, said the corner of Madison Avenue and South Pearl Street could provide another option for bringing a nonprofit or community-owned grocery market to the South End.

The collaborative is examining options throughout the neighborhood to bring fresh food to the community.

“We’re still seeking community input on what model makes the most sense for the community, but we want a model that allows people in the community to build wealth, that has opportunities for residents and small businesses to sell products,” Fein said. “It’s disappointing to see a business leave, but I’m optimistic. I think as a community we have to push for something better there.”