Annapolis Economic Matters Committee Meeting Summary

The Economic Matters Committee met on February 4, 2026, at 6:02 PM. The committee discussed a proposed 12-month moratorium on new short-term rental licenses (O-40-25) and received an economic development update. The meeting was adjourned at 7:01 PM.

Consent Calendar

• The agenda for the regular meeting was approved on a voice vote.
• The minutes from the January 7, 2026 meeting were approved on a voice vote.

Public Comments & Testimony

• Katie McDermott (55 Franklin Street, Annapolis, MD) urged passage of the moratorium without significant substantive amendment, arguing that short-term rentals impact housing and housing options, and that the zoning approach is an interesting but not constitutionally problematic regulatory path because it is a licensure issue. She noted that there was no staff or fiscal impact on the lottery amendments added to the bill.

Discussion Items

• O-40-25 – 12-Month Moratorium on New Short-Term Rental Licenses

  • Director of Planning and Zoning Jakubiak presented on the moratorium. He stated that 49% of short-term rentals were initially unregistered, but many were actually for special events (e.g., Boat Show, Naval Academy graduation) and do not require licenses. Compliance efforts have reduced the number of unlicensed units. Currently, there are 339 licensed short-term rentals, with 52 renewals in process. He noted that a 12-month moratorium would allow for coordination with stakeholders, evaluation of current conditions, and potential text amendments to the city code. A fee increase for short-term rental licenses may be advisable.
  • Alderman Savidge expressed concerns that the moratorium assumes adverse impacts (e.g., crime, noise, public safety) without clear evidence. He argued that the moratorium's purposes (e.g., comprehensive study, review of other jurisdictions) are partially already addressed in annual reports or could be accomplished without a moratorium. He noted that the city recently passed density regulations (10% cap) and a lottery amendment, which will reduce concentration. He questioned the need for a moratorium, suggesting a zoning approach as an alternative.
  • Director Jakubiak responded that short-term rentals represent about 2% of rental housing units, removing units from the long-term market. He noted that a concentration of short-term rentals changes land use and that a zoning approach could designate short-term rentals as a distinct use, with limits by zoning district.
  • Alderman Schandelmeier observed that the issue is tied to housing supply challenges, especially in areas where adding supply is most difficult.
  • Several amendments to O-40-25 were submitted but not yet finalized. The committee voted to postpone action on the bill until the March 4, 2026 meeting to allow for finalization of amendments.

• ID-8-26 – Economic Development Update

  • Economic Development Manager Strott reported on:
    • Building permits: $2,556,500 in estimated cost for January 2026.
    • New businesses: Three new permitted businesses (U&O permits), including a software contractor for the U.S. Navy.
    • Winter storm response: Businesses were alerted ahead of the storm; problematic areas (Maryland Avenue, Dock Street) were addressed by transit, public works, and Whiting Turner. Dock Street is now completely clear.
    • City Dock project: Construction fencing is in place; directional signage is being installed. A quick pickup/drop-off area with two parallel parking spaces for 15-minute loading is planned, pending final confirmation from public works. A new magenta shuttle stop on Craig Street is expected by March.
  • Alderman Schandelmeier requested that a representative from the new Navy contractor introduce themselves at the next Economic Matters Committee meeting.
  • Alderman Savidge suggested exploring removal of curbside parking on Dock Street and adding diagonal parking on Craig and Prince George streets to create pedestrian-friendly space (e.g., outdoor dining). The director noted constraints: construction traffic, emergency vehicle access, and resident parking concerns on Prince George.

Key Outcomes

• O-40-25: Action postponed to the March 4, 2026 meeting.
• Economic Development Update: No formal vote was taken.
• The meeting was adjourned at 7:01 PM.