Economic Matters Committee Meeting - September 17, 2025
Economic Matters Committee Meeting - September 17, 2025
The City of Annapolis Economic Matters Committee met on September 17, 2025, from 6:34 PM to 7:19 PM. The committee considered three lease ordinances and received an economic development update. Key actions included favorable recommendations for two boat show leases and postponement of the Market House lease for further negotiation.
Consent Calendar
- Approved the regular meeting agenda.
- Approved the minutes from the July 16, 2025 regular meeting.
Discussion Items
O-32-25: Lease of City Property – Fall Boat Shows 2031–2036
- Authorizes a lease with United States Yacht Shows, Inc. for fall boat shows from January 1, 2031 through December 31, 2036, with optional renewal terms totaling up to 10 years.
- The lease is substantially similar to the current one but includes flexible language for move-in/out dates and premises adjustments due to ongoing City Dock construction.
- Rent structure: minimum base amount escalated annually OR 50% of ticket sales (after admissions and amusement tax). For FY2024, the fall show generated $529,365 for the city after fees.
- Mary Ewenson, President of United States Yacht Shows, and staff (Matt Flinner, Ashley Leonard) presented. Committee members expressed support, calling the boat shows a good partner and a fun draw for visitors.
O-36-25: Lease of City Property – Spring Boat Shows 2031–2036
- Substantially similar to O-32-25, covering spring boat shows. Spring 2024 generated $36,196.59 for the city.
- The committee heard the same presentation and testimony.
O-33-25: Lease of City Property – Market House
- Authorizes a new lease with New Market House, LLC for an initial five-year term (July 1, 2033 – June 30, 2038) plus three five-year renewal terms exercisable at tenant’s sole discretion (unless in default), for a potential total of 20 years from expiration of current lease (through 2053).
- Changes from current lease include: removal of city’s unilateral extension rights; more flexible financial reporting (standard audited documents instead of a specialized report); updated exhibits; ability to sublease with city approval.
- Staff (Acting City Manager Buckland, Assistant City Attorney Leonard, Director Flinner) presented. Alderman Savidge raised concerns: automatic renewals without performance milestones, rent escalator of only 5% per five-year term (not tied to inflation), and reduction in performance rent from 2% to 1% of gross sales over $1.5 million.
- Alderman Huntley’s amendments (from the Finance Committee) were discussed: desire for mutual renewal agreement, increased base rent or performance percentage, and an inflation-based escalator.
- Alderman Savidge expressed discomfort approving the lease without further negotiation on these points. He also suggested linking renewals to specific infrastructure improvements and annual community engagement reporting.
- The committee voted to postpone action on O-33-25 until its October 15, 2025 meeting.
ID-23-25: Economic Development Update
- Alderman Schandelmeier noted that the new Director of Economic Development had not attended. The committee directed staff to extend an invitation for the next meeting so the director can introduce himself and present goals.
- Alderman Savidge also raised the need to advance pedestrianization improvements for the Midnight Madness event, requesting an update.
Key Outcomes
- O-32-25: Favorable recommendation (voice vote, all in favor).
- O-36-25: Favorable recommendation (voice vote, all in favor).
- O-33-25: Postponed to the October 15, 2025 meeting, pending further negotiations on rent structure, renewal terms, and performance metrics.
- ID-23-25: Invitation extended to the new Economic Development Director for the next meeting.
Meeting Transcript
December 17th meeting of economic matters here in the chamber is myself and Alderman Savage. Can I first get an approval of the agenda? So moved. I will second. All in favor. Aye. Up next, can I get an approval of our July 16th minutes? So moved. Second. Aye. Aye. Up first. Oh, 3225 lease of city property at uh 3225, lease city property uh 2031 to 2036 fall boat shows. Do anyone from the staff? Actually, I think we have three people here from boat show. Come on up, Mary. Come on up. Take our assignments. Yep. Yes, I think we would just say. Wouldn't mind uh introducing yourselves for the record and testifying a little bit to 032 25. Matt Flinner, director of central services. Ashley Leonard, Assistant City Attorney. Mary Ewenson, President United States YOT Shows. Sure. I can give an overview. Um these are this particular one, 032 25, is for the two 2031 through 2036 fall vote shows. Um it's a new brand new lease that will take over when the current lease expires. Um it is substantially similar to the lease that's currently in place. However, we have attempted to rework it to make it more readable, more manageable, and to address um various issues that have come up over the last five plus years that we've worked out informal solutions for, and we're now we're sort of more formalizing those solutions, so to speak. Um the rent is staying um the same format, the same setup, which is um a base amount, a minimum base amount that is escalated annually, or a certain percentage of gross revenues. Um none of that has changed. City fees are still incorporated in here and still being escalated annually. Uh the premises is generally the same, but we have allowed flexibility and language in here to adjust things like move in, move out dates, um, expand reducing the premises by either party, shifting the premises, just to acknowledge the fact that we are going through significant amount of construction in the the least premises area, and at this point we're not sure how that will all shake out. So we did add some flexible language in there to adjust this post-construction. So city dock construction. I certainly hope will be uh completed by 2031. Yes, yes. I mean, that's the hope. But since we're but since we are putting this up now, and since that's still a work in progress, that could have change orders and shifts. We have to allow for some flexibility that will be adjusted as we go. All right. Alderman Savage, do you have any questions on this? Um, so uh all right, so this in total, if it's renewed. It would go through 20 the end of 2040. So it'll go through the 2040 vote show. Okay. Um that's the best three additional five-year terms. No, um, no. So this one, it goes um, I'm looking at the so the initial term will be um for one year for 2031.
openpublica.com