Boston officials are raising the stakes in their dispute with the operator of Faneuil Hall Marketplace with a threat to terminate the ground lease on the city-owned property.

Ashkenazy Acquisition Corp. has failed to submit a pair of $1 million payments in lieu of taxes that were due in August and on Nov. 2, Boston Planning and Development Agency Director Brian Golden notified the New York developer in a letter this week.

“As the landowner of the historic property, we will continue to take all the actions within our power to support the small businesses that make Faneuil Hall Marketplace the successful and beloved destination that it is,” Golden said in a statement issued Wednesday.

The BPDA has clashed with Ashkenazy over its stance toward late rent payments during the pandemic, including the period from mid-March through July when the property was closed. In June, Golden raised the issue of another operator replacing Ashkenazy as leaseholder.

Golden’s letter this week also cites an apparent second default under the lease terms: a $110,680 lien placed on the property by HVAC vendor Trane US Inc. for work done at the property under the terms of a contract dated Feb. 24.

Under terms of the lease, Ashkenazy has 10 days to submit the PILOT payments and 30 days to resolve the lien.

Although the marketplace has expanded outdoor seating for some tenants, the Cheers Replica bar location closed permanently in August because of waning sales and “no assistance from our landlord,” Cheers founder Tom Kershaw said at the time.

In a statement released Friday, Ashkenazy said it has been negotiating in good faith with the city.

“The narrative put forward by some regarding the management of Faneuil Hall Marketplace since the start of the pandemic is deeply flawed and disappointing. The fact is marketplace management has not been collecting rents nor pursuing collections from the local merchants since April, while at the same time securing, cleaning, maintaining and otherwise funding the property in its entirety. As a result of this continued stewardship, the merchants have been able to open for business,” the company said in the statement.

Ashkenazy acquired the lease for $136 million from General Growth Properties in 2011. The original lease was signed in 1975 by The Rouse Co., the original developer of the festival-style marketplace. The lease calls for $10 a year in rent payments to the city.

Editor’s note: This report has been updated with a statement from Ashkenazy Acquisition Corp.