Annapolis Economic Matters Committee Meeting Summary - May 6, 2026
Annapolis Economic Matters Committee Meeting Summary - May 6, 2026
The Economic Matters Committee of the Annapolis City Council met virtually on May 6, 2026, from 6:02 PM to 7:05 PM. Alderman Schandelmeier chaired the meeting, with Alderman Savidge and Alderwoman Allsup-Johnson present, and Alderman Thorpe as a guest. The committee discussed the special exception process, received an economic development update, and addressed the non-renewal of Market Space outdoor dining leases, including testimony from affected businesses.
Consent Calendar
- Approval of Agenda: The agenda was amended to add ID-926 (Market Space Lease Discussion) and approved by voice vote.
- Approval of Minutes: The minutes from the April 1, 2026 regular meeting were approved by voice vote.
Public Comments & Testimony
- Chris Hannon (co-owner of McGarvey's, Severna Park, MD): Testified on the Market Space lease cancellation. He detailed that on April 21, 2026, McGarvey's submitted a timely intent to renew, but on April 30 at 4:45 PM, the city issued a notice of cancellation with an effective date of June 30, 2026. Hannon argued that the outdoor dining program has been a significant economic engine, employing 20 additional staff at McGarvey's alone, generating more revenue for the city than the 19 parking spots would, and creating a vibrant pedestrian plaza. He expressed willingness to negotiate a new arrangement and noted that all five businesses want the program to continue.
- Kevin Havens (co-owner of McGarvey's): Deferred to Hannon's testimony.
Discussion Items
- ID-40-26: Special Exception Process: Director of Planning & Zoning Jakubiak explained the purpose of special exceptions as an impact test for uses not permitted by right, with the Board of Zoning Appeals as the decision-maker. He described the staff report process and the standards outlined in the zoning code. Committee members questioned the rationale behind special exceptions, noting potential duplication with existing codes (e.g., noise, parking) and the burden on businesses. Alderman Schandelmeier expressed dislike for the unpredictability of the process. The possibility of revising the zoning code to make certain uses permitted by right subject to standards was discussed as a potential reform.
- ID-8-26: Economic Development Update: Economic Development Specialist Stewart reported that the Inclusive Ventures Program, funded by a $75,000 grant from the city to Anne Arundel County in 2025, provided $5,000 working capital grants to 15 Annapolis-based businesses. The program has not been funded for the current year. She also announced City Dock Appreciation Day events planned for June 13, July 11, August 15, and September 12, pending final approval. Citywide commercial vacancy rates remain low at 4.4%, with Eastport the lowest at 1.5%, and nine new businesses opened in April.
- ID-118-26 (also ID-926): Market Space Lease Discussion: Assistant City Attorney Leonard stated that the current leases were intended as temporary post-COVID measures and that the administration is considering a different arrangement, with a meeting scheduled for May 11 with businesses. Aldermen Schandelmeier and Savidge expressed frustration over the timing and lack of communication, noting that the city earns more revenue from the leases than from parking. Schandelmeier strongly opposed returning the space to vehicular traffic and advocated for a permanent pedestrian plaza. Details on lease rates were provided: the Medco concession rate is $32.50 per space per day (10 times the $3.25 hourly meter rate), while current tenants pay $24.50. The committee emphasized the need for a stable commitment for the remainder of the outdoor dining season.
Key Outcomes
- The committee requested a work session on Market Space leases, as suggested by Alderman Savidge.
- Alderman Schandelmeier requested that a representative from the Mayor's Office attend the next committee meeting to provide an update on the Market Space lease situation.
- No formal votes were taken on the substantive items; the committee will continue to monitor developments and seek a resolution that maintains the outdoor dining program.
Meeting Transcript
Meaning of economic matters. Currently present are myself and Alderman Savage. Alderman Alsif Johnson will be joining us shortly. First, can I get a motion to before we begin? I am going to add one additional item to the agenda, ID 926, a conversation on the market space leases. Can I get the motion to accept the agenda as amended? So moved. I will second all in favor. Aye. All right. So up next, can I get a motion to approve the amendments from our April 1st meeting? So moved. Second. All in favor. Aye. Aye. Alright. So first, ID 4026, the special exceptions process finding and recommended discussions with Director Kubiak. Thank you for joining us today. We appreciate you being here on your day off. Thank you. Good to be here. Um so uh I instruct you some questions in advance. Essentially, one of my concerns has been coming up over for a while. Oh, I apologize. I've just now noticed Alderman Thorpe is joining us as our guest. Thank you for shooting me a text to remind me. Uh too many boxes to track. All right, so uh the special exception process for a lot of our small businesses and findings, uh, a concern that I have had seems, for lack of a better word, vibes based. Um welcome Alderman also Johnson. Uh, we are currently on ID 4026. So it currently seems very vibes-based and a lot at the discretion of individual staff members. Um as we all know in business uncertainty leads to high costs and lack of investment. And I am essentially just trying to get a better understanding of how this is done. And sometimes even vibes-based decisions help out of business, sometimes they hurt out of business. What is goes into the process? What are the checks and balances? What goes into this? If you wouldn't mind kind of getting into a little bit of the background, sure, yeah. So a special exception is one type of permitted use within a zoning district. It's uh not a permitted by right use, in other words, it's not allowed um by right, uh, it's allowed only after a public hearing and after some criteria are established. Um it's a city council that makes the determination about what is a special exception and what is a permitted by right use. So in many of the zones, there are some special exceptions. Uh in um some zones, special exceptions are things like restaurants or restaurants over a certain size. Um there the thinking is the logic behind the zoning ordinance is that certain uses have unique characteristics or potential impacts uh that require further review and evaluation and a systematic study by a disinterested body, in this case the board of appeals. So a board of appeals conducts a public hearing, applies the standards that are set forth as in the zoning ordinance, and decides whether the special exception is approved or not. Again, if it were permitted by right, there would be no special exception. It would simply go through the normal site plan process and obtain a use and occupancy permit. So um the there is a role for the staff uh in getting the board of appeals prepared for special exception hearing in the same way the staff uh provides uh information to the planning commission. Uh and this is unique.
openpublica.com