Economic Matters Committee Meeting - July 16, 2025
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Economic Matters Committee Meeting - July 16, 2025
The Economic Matters Committee of the Annapolis City Council met on July 16, 2025, at 6:35 PM in Council Chambers. Alderman Schandelmeier chaired the meeting, with Alderman Savidge present and Alderman Gay absent. The committee reordered the agenda and considered four ordinances, public testimony, and an economic development update. The meeting adjourned at 9:12 PM.
Consent Calendar
- Approval of Agenda: The agenda was adopted as amended to consider items in the following order: O-20-25, O-19-25, O-17-25, O-12-25. (Voice vote, carried.)
- Approval of Minutes: The minutes of the May 21, 2025, regular meeting were approved. (Voice vote, carried.)
Public Comments & Testimony
- O-20-25 (Sale of City Property): Robert Warden, Vice Chair of the Annapolis Heritage Commission, testified in favor of requiring archaeological assessments at the Spa Road DPW sites prior to and during remediation. He described the historical significance of the site, including its use as a farm with enslaved labor and a Union camp during the Civil War. He urged the committee to preserve this cultural heritage.
- O-19-25 (Regulation of Tours):
- Michael Bores (987 Roundtop Drive, Arnold) and Mike Carter (13 Francis Street, Annapolis) testified. They supported the legislation as a way to level the playing field for tour operators but requested exemptions for very small operators (sole proprietors or those with no employees) from licensing fees and insurance requirements. They suggested a sliding scale or reduced liability limits.
- Charles Missouri (215 West Street, Annapolis) testified as a small, occasional tour operator. He expressed concern that the insurance and licensing requirements would be burdensome for infrequent tours and requested that small operators be exempted.
Discussion Items
- O-20-25: Sale of City-Owned Property at 932 and 935 Spa Road – This ordinance authorizes the sale of three parcels to the Resilience Authority of Annapolis and Anne Arundel County for environmental remediation (brownfield cleanup). The property would be transferred for up to seven years or until remediation is complete, then revert to the city. Key discussion points:
- The city cannot directly apply for EPA brownfield grants because it caused the contamination; the Resilience Authority can.
- The grant application deadline is November 2025, requiring the property transfer before then.
- Alderman Savidge expressed concerns about the lack of a firm development plan, the timeline, and potential loss of city control over future use (e.g., transit hub, city facility). Alderman Huntley raised worries about the CNI program and parking requirements.
- The committee received a presentation from staff and the Resilience Authority. Alderman Schandelmeier recommended no action, with a request for amendments to be prepared for a joint meeting on July 23.
- O-19-25: Regulation of Tours in Historic Annapolis – This bill would require commercial tour operators to obtain a city license, carry insurance, and operate under a legal business name. Discussion focused on:
- Amendment #1 (passed): Removed the requirement for a local business address.
- Small operator concerns: The sponsor, Alderman Huntley, indicated he would bring forward additional amendments to create a tiered system exempting very small operators (e.g., sole proprietors with no employees) from certain fees and insurance requirements, and to specify insurance amounts in code.
- The committee voted no action, with a recommendation that the sponsor bring amendments addressing small business concerns.
- O-17-25: Limiting Short-term Rentals per Blockface – This bill caps short-term rental licenses at 10% of dwelling units per blockface. Discussion:
- Amendment #1 (passed): Redefined “blockface” to include irregular street configurations, with Planning and Zoning to make determinations.
- Amendment #2 (passed): Exempted owner-occupied short-term rentals from the cap. (Alderman Schandelmeier raised definition concerns, but the committee decided the term is legally established.)
- Amendment #4 (no action): Would have created a lottery system after a two-year phase-in to reduce existing concentrations above 10%. The sponsor and others worried about legal challenges and fairness; Alderman Savidge indicated he would refine the language.
- Amendment #5 (no action): Tied to Amendment #4.
- The committee voted to recommend O-17-25 favorably as amended (with Amendments #1 and #2).
- O-12-25: Prioritizing Affordable Spending Through Expansion of Financial Advisory Commission Duties – This bill would add “spending affordability” reviews and long-term fiscal projections to the Financial Advisory Commission. Alderman Arnett requested postponement to work with the finance department on alternative approaches, such as contracting directly for forecasts. The committee voted to postpone action until the September 17, 2025, meeting.
Economic Development Update
- Alderman Schandelmeier presented an update from SMBE Liaison Hope Stewart on the Maritime Apprenticeship Program. The program has made significant progress: applications for the program are complete, employer partners (Port Annapolis Marina and Diversified Marine Services) have approved on-the-job work processes, and a wage schedule has been developed (average $24/hour for experienced technicians). The program is expected to be presented to the Maryland Apprenticeship and Training Council in September 2025. The update was received positively.
Key Outcomes
- O-20-25: No action taken; amendments requested for the July 23 joint meeting.
- O-19-25: No action taken; sponsor to bring amendments for small business relief.
- O-17-25: Recommended favorably as amended (Amendments #1 and #2 passed).
- O-12-25: Postponed to September 17, 2025.
- Consent items: Agenda and minutes approved.
- Adjournment: Meeting adjourned at 9:12 PM.
Meeting Transcript
Welcome everyone to the July sixteenth meeting of economic matters. Here today is myself, Alderman Savage, and then joining us as a guest is Alderman R. Nett. So before we begin, I am going to amend the agenda. We are going to go in reverse and reverse order from what was posted. Then we will go to O nineteen twenty-five regulation of tours in historic Annapolis. Then we will go to O seventeen twenty-five, limiting short-term rentals per block base. And then we will go to O twelve twenty-five, prioritizing affordable spending through expansion of financial advisory commission duties. Second. If you will please come up to the table. Alison Demanio, Department of Public Works, City of Annapolis. Christina Alexander, Director of Operations for the Resilience Authority of Annapolis and Anne Arundel County. Thank you. So welcome. So we are looking, it's several parcels all on 932 and 935 SPAL on opposite sides of the road. So the 935 parcel is in the process of being subdivided into lots one and lots two. Lots two, as you can see, is closer to sort of like the um field areas. And then across the street is 932, which is actually two different parcels. It's parcel 358 and parcel 62. Um, and so those are the it's three parcels right now. It will be four parcels once we get through the subdivision. We are looking to sell lot one as well as parcel 62 and parcel 358. Um, so and it's the tax ID numbers and the addresses are a little wonky right now, but that we are working on that through subdivision. Um you'll notice that parcel 358 is address 932 Spa Road, but its tax ID number is actually the same as across the street because at one point all of that was one big parcel, and at the time there was no road through it, and the state gave it all the same tax ID number. So um, once the subdivision is complete, that little parcel 358 will be getting its own new tax ID number. And when we subdivide lot one and lot two, those will probably also be getting different tax ID numbers. Um so then you will have four parcels with their each with their own subdivision, their own tax ID numbers, and three of them will be going over to the resilience authority, and we will be holding on to lot two. Thank you. Um so the key component is why are we going through with this procedure? Why can we not uh hold on to these pieces of land ourselves? I can give you a brief overview. The experts are sitting next to me though. Um, in short, we want to do remediation, environmental re mediation on parcel 62, parcel 358, and lot one. Um, as we are the property owner who caused the contamination on the property, we that knocks us out of the running to get a lot of funding and grants because they tend not to give grants to the people who cause the contamination. So in this case, um, one of the approved methods that's used by a lot of local jurisdictions is that you sell the parcels to be remediated to a uh like a partner third party, usually a nonprofit. Um, they apply for the grants, they get the funding and they go through the whole remediation work themselves, um, which we would not be able to do as the property owner. Is that partner here today? Yes, they are here. Oh welcome. I love leading questions, aren't they fun? Um so what will the resiliency authority be able to do that the city cannot do with this uh uh by receiving this grant? Um certainly we are in a capacity to be able to accept a grant from the EPA for Brownfield remediation, and that's the purpose that we would serve in this transaction. Um the property would be transferred for seven years or for the time that it takes the remediation to be um completed, whichever is earlier, and then it would revert back to the city. So our um role is very limited. I have prepared um a handout that I've provided to um staff as well as council sorry, older people. Um and if you have any questions, I'd be happy to um answer um I have extra copies if you'd like and Ms. Jackson, could you please give a copy to Alderman Arnett? Thank you. Yes. Thank you.
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