March 4, 2026 Economic Matters Committee Meeting: Blackwood Presentation and STR Moratorium
Economic Matters Committee Standing Committee Meeting – March 4, 2026
The Economic Matters Committee of the Annapolis City Council met on Wednesday, March 4, 2026, from 6:05 PM to 7:33 PM in City Council Chambers. The committee reviewed a new maritime business, debated a 12-month moratorium on non-owner-occupied short-term rental licenses, and received an economic development update. Chair Alderman Schandelmeier presided; members present were Alderman Savidge and Alderwoman Allsup-Johnson (arrived at 6:13 PM).
Consent Calendar
- Approval of Agenda: The agenda was amended to move ID-45-26 (New Maritime District Business: Blackwood) to the first item. Motion by Alderman Savidge, seconded, carried on voice vote.
- Approval of February 4, 2026 Minutes: Motion by Alderman Savidge, seconded, carried on voice vote.
Discussion Items
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ID-45-26 New Maritime District Business: Blackwood – Economic Development Manager Adam Strott introduced Ryan Morris, President of Blackwood, a cybersecurity firm specializing in maritime security. Morris described the company’s decision to remain in Annapolis despite fiscal disadvantages, including the state’s 3% tech tax, which he said can consume up to 20% of gross margin. He praised the city’s economic development team for support but criticized lengthy permitting delays (6 months for simple bathroom additions) and inconsistent code interpretation, notably a requirement to add ADA bathrooms on a second floor without elevator access. Morris emphasized the value of the Naval Academy and local workforce, and plans to offer internships and sponsor capstone projects. The committee discussed streamlining the maritime zoning code to accommodate businesses like Blackwood.
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O-40-25 – 12-Month Moratorium on New Short-Term Rental Licenses – The committee considered numerous amendments. Assistant City Attorney Ashley Leonard raised a legal concern about the dormant Commerce Clause regarding the exemption for owner-occupied units, recommending stronger justification in the whereas clauses. The committee voted on each amendment:
- Amendment #1 (Smith-Brown): No recommendation (moved by Savidge, carried).
- Amendment #1A (Savidge): Recommended favorably (moved by Savidge, carried).
- Amendment #2 (Smith-Brown): No action (moved by Savidge, carried).
- Amendment #3 (Huntley): Recommended favorably with a committee amendment to remove “60 days prior to” (moved by Savidge, carried).
- Amendment #4 (Thorp): No recommendation (moved by Savidge, carried).
- Amendment #5 (Savidge): To shorten moratorium from 12 to 6 months. Recommended favorably on a roll call vote: Aye – Savidge, Allsup-Johnson; Nay – Schandelmeier. Carried. The committee also agreed to remove the “60 days prior to” language in the underlying bill to align with the shortened timeline.
- Amendment #6 (Savidge): Recommended favorably (moved by Allsup-Johnson, carried).
- Final motion: O-40-25 as amended recommended favorably, with a request that sponsors address the legal sufficiency of the owner-occupancy versus non-owner-occupancy distinction in the whereas clauses. Motion by Savidge, seconded, carried on voice vote.
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ID-40-26 Special Exception Process – Postponed to the April 1, 2026 meeting because Director of Planning & Zoning Jakubiak was absent.
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ID-8-26 Economic Development Update – Manager Strott reported on Dock Street business mitigation: the magenta shuttle now stops at Dock Street, signage for the one-way street is pending Miss Utility mapping, and discussions with Premium Parking about a pickup/drop-off spot are progressing. He noted that the Naval Academy’s construction and access restrictions are affecting local businesses. The committee requested a progress update by the April meeting.
Key Outcomes
- Blackwood welcomed: The committee expressed support for Blackwood’s presence and directed staff to review code provisions that require ADA bathrooms on upper floors without elevators.
- Short-term rental moratorium approved with amendments: The committee voted 2-1 (Savidge and Allsup-Johnson in favor, Schandelmeier opposed) to shorten the moratorium to 6 months, and 3-0 to recommend the amended ordinance favorably. Sponsors are asked to clarify the legal basis for the owner-occupancy exemption.
- Future items: The April 1, 2026 meeting will include the special exception process discussion and an update on the Maritime Apprenticeship Program.
Meeting Transcript
The March 4th meeting of Economic Matters Committee currently in the room at the time is myself and Alderman Rob Savage. Before we have an approval of the agenda, I am going to make an amendment. We are going to move ID 4526, New Maritime District Business, Blackwood, to the top of the agenda in front of O4025. Can I get a second on that? Second. All right, all in favor? Aye. Can I get a motion to approve the agenda as amended? So moved. Second. All in favor? Aye. All right. So up uh next, can I get the approval of our February 4th minutes? So moved. Second, all in favor. Aye. Aye. All right. Up first, ID 4526, New Maritime District Business, Blackwood. Folks, can we join us up on the table, please? Welcome. So if you could please introduce yourselves, uh, make sure the green light is on on your microphone. Yep. Hello, good evening, Alderman. Uh thank you for having us here. And it's my pleasure to introduce Ryan Morris of Blackwood, the most recent maritime business to enter the city of Annapolis and receive their use and occupancy permit. Um I'll let Mr. Morris explain more about his business, but I can say that our office is um oh an Adam Stratt, economic development manager. My apologies. Our office is extremely excited to have them here and um and hopefully to build off their continued success and uh attract more businesses like theirs. So thank you, Adam. Yeah, I appreciate it. Um and thank you for having me. It's it's a pleasure to take a kind of take part in this process. Uh my name is Ryan Morris. I'm the president owner of a company called Blackwood. And as you mentioned in the Maritime District, we're really a cybersecurity business, but we've specialized our services around Maritime. Uh that's a large amount of the contract work that we do, and happy to kind of provide more detail on it. But thrilled to be formally in the city of Annapolis. Uh we've been based out of this area for quite some time. So our prior offices, um, we we moved into an 82 prior to me uh being born. Uh and it was time for an upgrade, right? And candidly, um, we went through the process of determining whether or not we belonged in the state of Maryland as a whole first, uh, and then where we were going to go. Um from a fiscal policy perspective, it made a lot of sense to not be here at all. Uh made a lot of sense to move, and I'm happy to provide some more opinions on that. Um, but from a personal perspective, this is the only place we can be. Uh I'm highly attached uh to this area. As I mentioned, I'm third generation to be running with this business. I'm the one that's supposed to screw it up.
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