First economic matters meeting here in the chamber are myself, Alderman Savage and Alder Woman Alsip Johnson.

First off, can I get a motion to approve the agenda?

So moved.

Can I get a second?

All those in favor?

Aye.

Second, can I get an approval of the minutes from our May 6th meeting?

Can I get a second?

All in favor?

I okay.

So up first is ID 14826, the downtown business partnership update.

Please join us at the table.

So for folks' um background, in case you missed the press release, uh, we have ended our contract with the downtown business partnership.

They are still a fantastic organization in the city.

Uh we just no longer give them um direct city funding.

Is that a correct?

Yeah, yes.

Sorry, I'm getting used to the new mics here.

Um, so I uh I think the way to frame it is that previously, you know, in the past fiscal years, they had the designation as the main street program for the city of Annapolis.

They're treated as an outside agency.

Um, and now the decision was to sort of recalibrate what what a main street program looks like for Annapolis.

So what we're doing right now in the Office of Economic Development is we're bringing it in-house, we're stabilizing the program, um, and then we're long-term planning, hoping to stand up a new organization, um, you know, with with ample community participation to better define this program and um you know ensure that it's meeting the goals of this administration.

Um, meeting the goals, do we have kind of a set idea of what we want to turn our main street program into?

That's we have an idea of how to get there, let's say.

We so I've I've submitted an action plan to the city manager's office, and I put together a brief for the mayor.

Um, with that action plan, again, it would establish a significant amount of community engagement and feedback loops with those stakeholders on Main Street.

So um, you know, it's not just the businesses that are there, although they make a big part of the experience that is walking through Main Street in Annapolis.

And when I say Main Street, I don't just mean Main Street, I mean the entire designated main street community, which includes other portions of downtown.

Um we also wanted to include feedback from residents, from institutions, uh, you know, from uh other business associations that make up our downtown area because it's not just the downtown Annapolis Partnership, you also have the Interwester Association, and you also have the Maryland Avenue and State Circle Business Association that um that make up the entire ecosystem.

So we're looking at holistically, we're gathering feedback, we're gonna create those parameters, and we're gonna include that in what will eventually be a solicitation to find a partner to help us stand up this organization long term.

Okay.

Um, so you still didn't quite answer my question of what our goal is for what is our vision for the main street area.

When I say that I mean like the commercial corridors in general, so yeah, Main Street, marketplace, uh, Maryland Avenue, Inner West Street, I'm including all that in like our designated main street area.

So there are four pillars to a successful Main Street program.

Um there's also a fifth pillar that the state incorporates in its in its implementation of the program at at its level.

I guess the reason I didn't provide a very clear answer is because we don't we don't want it to be like a top-down mandate.

We want the the stakeholders to be able to help us define what those goals should be and how what a successful program looks like.

We know that a successful program includes yes programming and events, but also includes significant placemaking.

It includes a love, you know, economic vitality is one of the pillars.

So we want to see small business development come out of this program.

You see that in a lot of other main street programs throughout the state, where they take an active role in attracting and placing businesses in vacant storefronts.

So we want we want to essentially see a partner or a partner organization, one that we can work with on a day-to-day basis to um to meet the needs of our of our main street ecosystem.

So again, I'm sorry if it's not very detailed right now, but it's because we're still in a phase where we're gathering information.

We're going to be reaching out to you know these different stakeholder groups, as I mentioned, including the business community, and having their feedback help guide that, you know, guide those decisions on what the goals really should be for the program long term.

Okay, I think that makes sense, and that's a very good answer for why we should keep it more broad at this point.

Yeah.

It's still early stage.

Now, one of the main things that the downtown business partnership took care of was they uh led the charge on specific events uh in conversations offline with the mayor's office.

I understand that we're still trying to figure out who's going to be taking uh lead.

Um for me, one of the big ones is the tree lighting every year and uh the menorah lighting every year.

Um do we think that the city's going to be taking charge of that?

Do we have the capacity to make sure that that's still a successful event around the holidays?

I again it's it's too early for me to give specifics because it requires significant coordination with other departments.

I would say that based on the resources that we'll have available to us to manage the program, I don't see why that particular event would prove any prove a challenge, a specific challenge.

I think that's in fact those types of placemaking initiatives like the tree lighting, like holiday decorations or flower baskets along Main Street, might be better suited for the city to take on itself regardless because we we have the capacity to do so, you know, between wreck and parks, between public works.

Now, obviously, that all still needs to be defined, but the the ability to do so is there.

I misspoke, I shouldn't have said capacity.

I said the ability to do so.

It's just a matter of managing resources and coordinating with those other departments.

And yeah, I appreciate you getting into like resources because doing these isn't as simple as like having a creative vision, it's staff resources and time and whatnot.

Um, that's all the questions I have at the top of my head at uh at this time.

Um, my colleagues have questions this one.

Alderman Savage?

Thank you, Mr.

Chair.

Uh yeah, a few questions.

Have you looked at other jurisdictions to kind of figure out what kind of models, organizational models might work best?

Yeah, so there's just in my own experience, you know, I've worked I worked very closely with both uh Cumberland and Frostburg in my time in Western Maryland, and I'd say both had uh amazing programs, there are different types of models.

Uh Frostburg being more of a again, a nonprofit driven with with municipal participation.

Um, very robust program for how small of a jurisdiction it is, 5,000 people, but it's a college town, so they need to have that you know level of engagement, very high level engagement.

Whereas Cumberland, you have a legacy city, it was kept in-house, they had a special taxing district to be able to fund the program, so very creative there and how they're able to apply those resources.

Uh events like Friday after five, you know, their their tree lighting's all done at the municipal level, um, but significant engagement among all the stakeholders, and again, not just the businesses.

You look at very successful programs throughout the state, like, say, for example, um, you know, Sykesville just won an award.

Um, you know, they they have another private, you know, public-private partnership model.

Uh, City of Berlin, again, that's municipal-led, so it's all in-house, um, and then Frederick's always held up as a is a very successful program.

They're able to rate, that's the other that's the other element.

They're able to raise significant funds.

So a successful Main Street program, and this is something we hope to capture whenever we put out that solicitation, it kind of operate on a rule of threes, right?

Uh, rule of thirds, where a third of your funding should come from grants, third of your funding should come from fundraising, and a third should come from that from the municipality.

And as we look to the future of how you know we can partner with an organization that we're hoping to stand up, right?

We're hoping to stand up a separate organization that's ingrained with the city.

Um, you know, city fund that can be both like a carrot and a stick in a way to ensure that they're doing their their you know their best to be able to fundraise independently by saying everything that you know you're tied to with the city is based on what you what you raise.

So there's a lot of models out there, but it but I think the important the the important through line with all those models is that they they own Main Street, right?

Not literally, but I mean figuratively.

They are the brand for Main Street, they're the ambassador.

When they can they can sell themselves, and when I say that, I mean they can they can merchandise or they can easily you know uh fundraise off of their off of their branding because it's so ubiquitous with Main Street.

I think that's what we need to see because we do have a world class main street, and I think it can be marketed very well if the program is managed in such a way yeah and so would it be just focusing on Main Street or an entirety of downtown.

It well it's the designated Main Street.

So it's Main Street, it's Doc Street, it's the first block of inner West Street it's um that first block there of um I think it's the first two blocks of Maryland Avenue and State Circle and then it goes up Prince George Street.

So that's the it's sort of the main like Main Street district I guess you can it's the designated Main Street area.

Okay.

Yeah because one of the things I have there seems to be often like a disconnect between the various streets and and the kind of programs that they have done in the past as far and it sounds like West Street is outside that area but um a lot of good inconsistent inconsistency in between like Maryland Avenue and and downtown uh Main Street and it'd be nice to have some more coordinated efforts.

I absolutely agree with that and I think that's where our office taking on this program for the interim right can act as that coordinating force and in fact the action plan that I drafted that's still waiting you know formal approval that's one of the objectives is to become you know how do we map that out how do you know create a document and a process where we become that coordinating force we have regular check-ins with these different groups we work with them to ensure that you know schedule of events don't conflict or that if there's opportunity to collaborate it's there I think a great example of this and this wasn't Main Street but a great example of this recently was through the arts district with their um their event on this was June 13th June 12th I can't remember whatever it's that Saturday was where there was ample coordination between Inner West Street and um Maryland Avenue and State Circle.

So the the arts you know the live I I don't think it was Annapolis live arts I can't remember the the title of the event but um I know there was significant coordination between those groups in the arts district and I think that's where the Main Street program can really come in and and add to that.

They could be more of a coordinating force.

They don't have to be the necessarily the driver of the events but they can be an enabler okay because they do I do think the downtown partnership's done a lot of good work.

Yeah as do I um the reason I'm asking about some of the organizational setup is that I think there have been I guess some inconsistencies and and um challenges tension over the years which I'm thinking might be resolved through different organizational structure and having the making sure the city is more involved because I we used to get regular updates from DAP this committee and that really just petered off to to nothing.

And I I've heard in the community there's various frustrations with that organization and structure so if we're gonna be starting a new be great to set it up for success for long term.

Yes yeah exactly yeah and I think a lot of that can be defined before you know and it's a lot of that can be defined as we're working on some of these other elements right how what's the over site structure look like what what is the the collaboration look like and and have it really be ingrained you know can it's continue to be a continue to be like an outside agency with city funding but also have an element where it's you know sort of attached to to either economic development or planning and zoning where we're you know we interact more um but all that can all that's to be defined right how we do I think the point is that we need to purpose build an organization to house this program you know that that really encompasses the the Main Street program.

It's not you know there be Annapolis is sort of interest it's interesting I don't know how unique this is but this is the first time I've seen it where you have this you know this very decentralized sort of business network right everybody kind of has their own their own areas where they you know they work within and they and everybody collaborates but I think a main a successful Main Street program in Annapolis needs to be more of a of a unifier and work work with these disparate organizations right and say hey I'm I'm sort of the the the glue that binds everybody together.

So I think that's that's what and and whatever consultant that ends up getting you know coming in and helping us build this organization will recognize that we'll take an inventory of our of our current ecosystem and really provide some structure to what this organization should be.

And just I don't know what the organizational structure is for these communities but two downtowns I've always been impressed with when I visited was Burlington and um Boulder.

Yeah.

Yeah I'll I'll take a look at those I mean we're benchmarking right now so any suggestions would definitely be helpful yeah.

Thank you, so Johnson.

Um thank you chair, um just want to talk about um who you contact if you had some um ideas for new events.

Well I that would probably be the special events coordinator um just to understand so that's uh Felicia Nolan probably just to understand if it's even feasible I mean she's she's gonna be the one that's going to coordinate between the um different different departments so put police fire um the public works but if it's a matter of just brainstorming and conceptual like we're our office is always open for that we've had meetings with organizations hey we want to do this we're not sure how we can help guide them through the process so because these events are for everyone right but I don't you know what I'm trying to say I don't see everyone attending you know I'm saying and and I'm hearing things about the events in the city so um if we can maybe invite the event person on maybe we can and maybe I can bring whoever want to talk about some events to a meeting one day yeah to one of our meetings yeah sure however you I mean I I'd also be happy to to make a connection you know by email and maybe we can set up a meeting outside of just to kind of understand what some of those concerns or requests might be because we might be able to just meet them through you know through staff at the staff level that's true if we could try a some different events.

Yeah.

Uh-huh also um so do you do the New Year's Eve event you're in charge of that no well I'm not I'm not really in charge of any events necessarily what I I suppose I'm I'm trying to convey here is that the Main Street program that was with the downtown so the past fiscal year and and prior it was held the main street program designation was held by the downtown Annapolis partnership.

Now that's coming in back to our office to manage in the interim while we work with other departments to stabilize the program here internally and provide some of those services the best we can and then long term create a new organization to take that on.

So that's a great program the New Year's Eve event sure that means it's nice is really nice absolutely all evening you know yeah yes and it might very well be you know again I don't want to I I don't want to speak out of turn here because you know DAP is a is still great organization and they have great programs.

They do a lot of really great events so it's it's one of the situations where obviously we're we're gonna need to coordinate with them very closely and just as we will with Inter West Street Association for that first block of West Street and Maryland Avenue and State Circle Business Association for when they do their like fall festivals.

Well that's good to know um as we get closer to some more meetings and more events I'll be thinking of I'll be contacting.

Please.

Yeah, I'd be happy to coordinate.

Okay, I appreciate this.

Kitchen from the right events too good.

Yes.

But my well my colleague was uh trying to delicately put, but I will put more explicitly there is a lack of there's a bit of a vanilla in our events downtown and a lack of color in them, which is true.

Uh it's hard to put on a put on an event and the barrier for entry is pretty high and outside the major festivals.

Well, it's something we can look into, you know.

Again, as a main street program, that's something we could look into and see, you know, that again, that the we haven't defined what it looks like yet, and I think that's something we should take into account.

We're definitely going to be engaging with stakeholders, and we'll probably hear that feedback and we can incorporate that in the future to ensure that there is there is more diversity, right?

In the programming that's offered, yeah.

I do.

Yeah.

It's like it's not our event.

What you mean it's not our event, you know.

So, it's yeah, to your point, it's everyone's event.

Anyone can come and so we can have to include a little tweak, do a little tweaking in between some of these events.

Yeah, maybe better outreach and some marketing to ensure that's you know, all the right communities are within the city, you know, are getting getting notice, right?

Everybody's getting notice.

So yeah, yeah.

Um now before we move on to the next item on the agenda.

Uh, there is something I want to put on your radar, and I've had a very brief conversation with Director Drakupiak about this as well.

Uh the state has now authorized local jurisdictions to offer uh tax credits to designated main streets and designated arts districts.

Yes.

Um I'm very interested in us figuring out a way to do this effectively.

Uh we don't just want to do tax breaks and credits for the sake of doing it because that just cuts us out on revenues.

Uh, but I would love to find some time to meet offline for you to start puzzling out and uh us to think over the summer to uh really find a way to encourage what do we want to see, what do our businesses want to see in our designated main street area, which again doesn't just include Main Street, it's also Maryland Avenue uh inner west street, and really try to guide uh a good community feeling in these areas and offer incentives to get there.

Yeah, and he's and he's informed me on your interest of that.

I in you know made sure to from the familiarize myself with the legislation, um, there's some caveats in there, but I think to your point, if we're very judicious about how these are applied, we can use it as an attraction tool.

So I'd be happy to provide you with sort of an early briefing of what I've looked at so far and how we might be able to apply it, and and then we can go from there.

We're early in our term and we got time to figure it out and get it right.

Okay.

Excellent.

Well, thank you.

Is there anything else on ID 14826 from my colleagues?

Excellent.

Thank you very much.

Up next is ID 7126, the maritime apprenticeship program update.

All right.

Well, um, my my colleague Hope was um, you know, she was able to provide me with a few bullet points here, and I added them to my report that I sent in.

So I'm just gonna read these off because she's been the main liaison between the program and the city, but um, you know, great news that Port Annapolis plans to register another apprentice uh for the program.

So it's getting some traction with our with our marinas.

Um the um Maritime Trades Association of Maryland plans to register an apprentice at full Keel Marine, which is a uh diesel service company based out of Birchavens in July.

So again, these these apprentices are getting picked up.

There's a little bit of traction there.

Um but and they're waiting for their I guess the next payment of the $50,000 grant for the new fiscal year to be able to get more apprentices in their pipeline.

So I think this is a great opportunity, and that you know, it's something I'm gonna work with Hope to be able to log when you know how many apprentices come in, where they're going, how long they're staying.

You know, we get some real data behind this program to determine its uh its efficacy.

But um uh yeah, we'll we'll keep you updated as as more information comes in from Maryland Trade uh Maritime Trades Association Maryland.

Excellent.

Um so during the early stages of the apprenticeship program getting set up, uh we hope and and we, I mean hope and myself had a very productive meeting with Dr.

Videll and school board member Tobin uh to see if we can get some buy-in from uh buy-in from Anna Rundle Public Schools and Royal County Public Schools.

They were very interested, and now that we are starting to recruit more apprentices, I would love for us to reach back out to uh AACPS and try and get more of them involved if that's possible.

And um I've also reached out to the uh seafarers union, and I admit this is me dropping the ball.

I have done a bad job at trying to coordinate everybody's schedules and get a tour of their facility and see if they could be a potential partner as well.

Uh I apologize, June was a heck of a busy month at the day job.

But um I'm really glad to hear that we're getting more people signed up for this.

Uh do we have a is our target still six apprentices during the pilot phase of this program?

Uh that's a good question.

You know, I I don't I don't have confirmation on that.

I'll have to I'll have to go in and confirm that with Hope.

Um, since she's been really running, you know, running the interactions between the city and and MTEM, but um, yeah, I'll find out.

I'll find out and and report back.

Uh Alderman Savage?

Thank you, Mr.

Chair.

So is Hope handling the outreach to the various marine industries?

Or is that handled by the that's really handle, yeah, it's handled by marine trades.

Okay.

Yeah.

They're since they already have from my understanding a list of um interested firms that they that they're working with.

I think the issues that they're limited on the number of apprentices that they can support at any one time.

Yeah, and we'll I think we'll need to know before next year's budget if that money needs could boost it all if they do hit their cap of six and think they're more in the.

I guess we encourage them to have a keep a waiting list so we can determine if it's an adequate amount of funding or not.

Yeah, to understand truly understand the demand, yeah.

Yeah, and that's something I'll work with Hope on being able to um you know capture as much data as possible to so that you can make the most informed decision on that for next year's budget.

So, yeah.

I don't have anything at this time.

Excellent.

Well, thank you for that update.

And um last on the agenda is ID 826 General Economic Development Update.

Yep.

So um this month, and I I first off, I want to thank all of you for your patience for the past few months while hope filled in for me.

My son was in swimming lessons.

Um so I I wanted to ensure that we had a full accounting for this year of the um excuse me, um the new the new businesses that have entered Annapolis.

So I just wanted to be be clear that the permit data that we have, so use and occupancy permits, and I and I think I've mentioned this before.

I mean, they capture a number of different scenarios, a new business coming in, which is what we have here, but also when there's a new owner that comes into a business or when a business relocates.

So while we might we may have significantly more use and occupancy permits for the first six months of the year, well, up until Monday.

This is you know the 29th is when I we're kind of at a weird date, right?

It's the first, so I couldn't finish the month off.

But um so the city's seen um 16 new businesses open their doors, and this has resulted in 96 new full-time positions and 26 part-time positions, which uh would total 109 full-time equivalent positions, you know, assuming that the part-time positions are 20 hours a week.

So that's significant, and that's in just in the fact that this is just hap this is happening organically, right?

We don't have any other than maritime, you know, the partnership with MTM, we don't really have any formal programs in place other than just supporting these businesses once they land and helping them when they through their permitting process, which is which is hopefully going to change here soon.

But um just I think it was interesting to note that April was the busiest month.

You saw most amount of businesses open and the most number of employees.

Uh two major um or two notable uh businesses, Peter Chang's and Senor's Market made up a bulk of the new employee count, both having uh an element, so Peter Chang's being uh uh you know, Chinese cuisine, it's a restaurant, you know, full service restaurant, and um Senor's market being grocery store and uh that element of quick serve um Mexican cuisine as well or Latin American, I think they do sort of a mix, but um so again services as we know, service industry is very important for the city, um, still a high growth area.

You saw some retail as well, um, receive their use inocusing permits.

Um, but the um I think the interesting, another interesting part here, so I included a building permits so you get an idea of total value of construction that's occurring in Annapolis.

But if you look at the past six months, you can see the type, and it's essentially or most of its alteration.

There's only two new ones, like two new building permits there, and they weren't they don't have very high um, you know, they don't have very high costs associated with them, um, which is it's it's sort of a double-edged sword.

You want to see that that amount of money being spent on keeping up the properties that are here because ultimately that's gonna help with the accessible base, right?

So you see some major, there's a few major um um a few major uh projects, but the um the the issue here is that the major projects are tax exempt for the most part, um, except one, right?

So you have the county courthouse, they upgraded their bathrooms.

That was a significant project, um, on church circle.

Uh 150 South Street, another major renovation, and that is pro that is a private um taxable entity, uh, office space.

But then Maryland Hall, again, a tax exempt partner.

So, part of the our office's mandate is to increase the accessible base.

And um that's that's our actually our main performance measure.

That's the reason why I'm including this because we take we now we're taking a more active role in helping to identify and spur development, mainly teaming with comprehensive planning.

The Office of Comprehensive Planning and our office have been working very closely, especially in the large infill areas that have been identified in the comprehensive plan.

So that way when you know however many months, years from now when you start to see some real development occur, you know, the pipeline's gonna be be pretty built out.

So um still within the first six months, you saw almost 10 million dollars worth of worth of some construction occur in the city.

So and that's you know, not even counting what's going on the city doc.

It's like without not infrastructure, this is like actual buildings, so from building permitting.

Um so a couple of other updates that aren't on here that I wanted to um bring to your attention.

So we've we started a new initiative to create a brand for economic development.

So this goes into our business attraction strategy.

In order to become a leader in attracting the industries that we we're targeting, right?

Specifically maritime um as well as environmental technology, because that's listed in the comprehensive plan.

We need to be able to market to those industries directly and explain why Annapolis is the best place to do business because we're competing with jurisdictions not only in the region but across the country.

So we're working with a branding firm out of uh Franklin, Tennessee named Chandler Thinks.

They came up um about three weeks ago and had a meeting with um our stakeholders, which includes visiting Napolis and includes the Naval Academy and it includes Anna Rundle Economic Development Corporation, and we also included University of Maryland Center for Environmental Science as a future target industry.

So that was a it was an informative meeting.

It helped guide this, you know, this is being done in conjunction with the city itself, right?

The city's developing a new brand and a new website.

We're focusing on one for economic development that's going to be again like externally facing, so not necessarily for our residents, really to help attract those businesses here to we can market, you know, market ourselves and attract those businesses here to Annapolis.

Outside of the maritime industry, what are these other target industries that this brand rebranding is going for?

So maritime specifically, I mean, we're looking at, I can give you verticals, for example.

I mean, the there are two two verticals right now that I think could be um that could be annapolis could be very attractive for them, and that's leveraging all of our anchor institutions and our strengths, like access to the water, uh, one being autonomous naval systems.

So think like you know, seaborne drones or even sensor arrays and potentially um you know environmental research.

So any time a vessel needs to get out on the water, you're creating the industrial base that will underpin the recreational boating economy that's you know so strong here in Annapolis.

So those are those are two verticals right now that that we've identified that could be very strong.

Environmental research could also be like blue tech, right?

So water-based technologies.

Again, people need access to marinas to be able to go out, prototype whatever their whatever their product is, gather data, come back.

They're using small craft to do that.

They need some sort of base.

They might need 5,000 square feet of of warehouse space on in at a marina to be able to, you know, manufacture their product to be able to then sell.

So that still kind of comes back down into maritime/slash maritime adjacent.

Yes.

Uh however, when we did our maritime rezoning, did it cover industries like that is by right, essentially, or do they still fall in that gray area and need to do a little finagling negotiations, lawyering up.

Well, the the I think this goes, this is this is uh this is more of a question, I think, for from my director, but I can say that based on the experience that we have with um uh our our most our most recent um maritime addition, uh, I think they would all they would fall within that because when you're even if you're servicing an aspect of the maritime economy, it's still it's still creating that need for those those jobs, right?

That infrastructure, that supply chain, even if it's not just say, oh, I'm you know, for example, I'm I'm I'm servicing the boats themselves.

No, you're providing the demand for those companies that service those boats.

And in doing so, employing individuals that will be then be working on the water.

So when you said so when you said that, you meant they fall in the buy right use after our our rezoning reforms, not the we got a lawyer up, do a lot of negotiations.

Well, again, I I defer to my director because ultimately he's gonna be the one making that decision, but based on precedent that he's done in the past the past, I would I would argue that yes, it should not be an issue.

So yeah, but again, I have to defer to him because he's the decision maker on that.

Okay.

I I really would love I I'm very happy to hear that this is definitely an industry that we're going after.

And uh before I yield the floor to you, Alderman Savage, and I'll also bounce this idea off you because you're the only member here with uh waterfront ward.

I think those type of industries are if not in the letter of the law, and when we did those reforms very much in the spirit of what we want to try to attract.

Um, I mean, autonomous naval craft, that's waterfront, maritime research and environmental research for the health of the bay.

I consider that maritime.

So if uh anything gets a hitch, please come to us because I'd love to try and streamline that process.

Absolutely.

Yeah, yeah.

So um the other the other bit of news that I wanted to share is that um uh a company that I've been working with for for several months now has officially signed a lease, they submitted their use and occupancy permit, and this is uh uh uh I think a noteworthy firm because they specialize in uh artificial intelligence, specifically for environmental engineering.

So it's it's an offshoot of an existing firm in state at State College, uh Pennsylvania.

They've they've already had foral partnerships with Penn State.

Um, and they're establishing partnerships here in Maryland.

They're working with Anna Ronald Community College.

Um, there were I've introduced them to Umsies, that was one of the first meetings that we've had.

Um, and I think that they have a very robust pipeline of um of projects here just here in Maryland.

So the company's name is BAI group.

The name of the lab is BAI Labs.

Uh they'll be employing five people, uh engineers mostly.

And um they're going to be providing a number of different services, including uh AI training for environmental engineering firms, developing models, digital twins for wastewater treatment plants.

So this is exciting.

Um they're extremely interested in our in our market, and in my opinion, I think this might be the first domino to fall um in attract in attracting more environmental engineering firms and environmental technology firms.

Having UmCis here is as an anchor institution is really going to help us be able to capture that industry vertical uh more easily.

I'm looking at the AI's website.

I'm loving a lot of the uh battery energy storage and the environmental permitting compliance.

That's the things I like the AI.

Yeah.

That's the parent.

So that's the parent company, which is you know, this this legacy engineering firm, and they're making this big investment into artificial intelligence, specifically for environmental engineering, and and Napolis is going to be the home to that lab that they're investing in.

Yeah, all that savage.

Thank you, Mr.

Chair.

Unlike the chair, I like AI, and I'm glad to hear that we'll be improving our capacity there as far as uh economically.

He likes drones, but just not autonomous AI drones.

I want someone control that.

Oh, I see.

Yeah.

But yeah, there's a serious note though.

I there is quite a bit of use, I think, for AI when it comes to environmental engineering and research.

Um, I think they're starting to experiment with it as far as water quality testing and monitoring um as well as the trater treatment uh capacities.

Um, and did you say where Umsies is looking to locate?

Well, they're their main administrative headquarters is in Annapolis.

Oh, did they move in to in Esport?

No, they're they're on West Street.

The I uh the building across the street from the graduate where SECU used to be.

Okay, I don't think I realized that.

They have the top the fourth floor, top floor.

Yeah.

For a little while.

I think we were trying to get them into the waterworks parked well to get that building in re-do an improvements on it.

But um in any case, um so glad to hear your goals for increasing the taxable base.

Uh and so on on that train of thought, um, would your office be willing, would you support and help you know uh get some annexations through the finish line as far as because we do have some business corridor parts of our business corridors that are still within the county, and some of those property needs properties need significant improvement and revitalization, and um and they do have some vacancies in those and I think getting them if we could lure them with a bit of a carrot that might be one thing to to push.

If you if you're interested in pursuing that, please follow up on the offline chat about some of those things.

Yeah, I think I can maybe I give you an idea or maybe a um a sort of a briefing of what we've been doing so far.

A lot of a lot of what we've been doing is identifying identifying opportunities and then finding the right partners, you know, playing matchmaker a lot of times, understanding who are the stakeholders that control certain properties, gauging their interest in redevelopment, and this all goes back to the comprehensive plan.

I mean, this it's mapped out for us, which is great.

We have these large infill sites.

There's a lot of blacktop there that can be repurposed into something more valuable.

So I I'd be happy to talk to you about specifics of what we've been doing and then understanding maybe what some of your goals are and how we can apply that methodology to those goals.

Well, especially as we move forward to potentially building out some of our transit options and getting local designation for transit oriented development corridors.

I think there'd be quite a bit of um you know need for your office to really assist with those efforts, and um, but you know, if if we really grow in that direction, we might have to beef up your office staff if you determine you'll need more support to we're we're planning on playing a role in that.

We are, and to the extent we are, right?

As I mentioned, I'm I the person in my office who I talk to to most is Eric Lashinski.

Okay.

So he and I he and I coordinate daily on a number of initiatives, and um, I think it has it's as it should be because really our arm, you know, economic development, our arm of planning and zoning is like the execution side, right?

Comprehensive planning gives us a roadmap, and then we act as the you know, the agent to ensure that those objectives are met, so yeah, yeah, exactly.

Good.

And I'm glad to really excited to see Ward 7 leading the pack on job growth, especially over Ward 5.

Well, we got more food tricks, yeah.

I was gonna say rising tides raise all boats, right?

Isn't that the all ships?

So, but I did notice something so that was good to see as far as general in the city, not just Ward 7, but the job growth, but the permitting pace is not keeping up.

Uh, and so I think that's something, Mr.

Chair, I would love to revisit in the future.

I know it's already on our minds, but just making the permanent process a lot easier, um, because we did hear a couple months ago from some recent applicants who did encounter quite a bit of difficulty, and I know that it's on the director's mind too.

But um, you know, at some point maybe we after the break, we could figure out how to move that forward a bit more.

I think um for me, we have process issues and code issues, and the director has done a great job over the past year ironing out a lot of the internal process issues, but the city is notorious for a lot of the code issues.

Uh, part of those we're fixing through our comprehensive rezoning process.

But there are parts that I think we should take a look at that aren't in that process that uh we can start really chipping away at a little bit quicker than that massive comprehensive plan.

So, we got four years of fun ahead of us.

That's absolutely and and it's I think in my experience, it's one of those situations where when everything goes right, you don't really hear it, right?

It's like, hey, this is great, I got my permit.

But when everything goes wrong, you're gonna hear about those cases, and as as you should, because that's you know, when I say you, I mean the collect everybody, right?

Everybody who works within city government, we should hear about those cases, and we should try to understand where the bottleneck was and how can we improve that.

But um, Alderman, to your point, I do think a lot of it comes back to the code and it does, and that can create bottlenecks.

And we have a lot at least, you know, I work more with the zoning side, I work with the permitting side quite a bit when things get hung up, but um, I can tell you that a lot of the people I work with, um, you know, try to find you know creative ways to make make projects happen, you know, to interpret it in a way where we can, yeah, this is how we can interpret it and justify it, and because otherwise, you know, if we if you don't have that level of creative thinking and you just adhere to a very strict interpretation of what the code says, then you you you can make things very difficult for a lot of people, so yeah, and and to that end, for your knowledge as well as the committee, because I'm not sure who always copied on this off the top of my head, but we did hear about hear from a business entity that's taking advantage of the outdoor dining uh code.

Um, but what's interesting is that they're claiming that it's has not been as successful as it was basically the preceding years after COVID, um, when we were just when we didn't really have regulations codified, we were just giving them blanket approval, and so my point is it seems like the code could is potentially and some of the arcane requirements in there for outdoor dining is sounds like it may be impact negatively impacting some of the businesses who were trying to continue in that tradition.

So if you haven't seen that, I can certainly try to pass along the general, keep their confidence, but pass along some of the general conclusions.

But um, I think that's something that may be coming back to this committee in the next few months as we look at that issue again.

Yeah, there was I I've I've worked with a number I'm not at liberty to say which because we have to keep competence and we work with our business partners, but um yeah, I've I had a number of um applicants who I think the issue was that this year was a learning year because the process had changed, and I don't think that there had been adequate notice of the new even within city, you know, inter interdepartmentally within the city, and you had you know there wasn't an application ready.

It had to be drafted.

Um, yeah, so there was and I'm not I w I just to interrupt because I just I'm not pointing fingers at the department at all.

No no no, I'm sorry, I didn't mean to come off as defensive in any way.

I'm I would I'm just relating that I think this year, I think this year might have been a one-off.

I think maybe if we see how it goes next year, and a lot of those applicants who are the same as this year go through the process again.

I think it might be a lot smoother because it the beginning of the season, the outdoor dining season, it wasn't really even established.

So I think now that there's been so it might be more of a systemic like a systemic approach of how can when these laws do get passed, how do they get implemented?

But that's a question that's not for me to answer because that's but well, and I think it'll be interesting to see if this pan if this continues on into future years as far as the negative impact.

Yeah, but anecdotally, I guess I would say for the time being, it looks like it looks like we kind of overregulated all these restrictions like you know the the ban on standing while drinking or eating, oh sure the prohibition on like uh music and dancing, which I mean we worked some of that out of the code, but the point is you contrast that to where they were when we gave them blanket approval on the resolution without all the red tape, without all the regulation, now that we have all the red tape, it seems like it may be a negatively impacting the businesses.

And so I guess my point is if you do hear any other I guess feedback from businesses who are doing outdoor dining, it'd be good to if you could pass along as we work on this effort um so we can figure out which direction we need to go.

Something I'll I'll follow up with before the beginning of next season.

So after this season starts to wind down, especially those businesses I work very closely with, I'll follow up with them, understand hey, how did it go?

You know, how was your seat even with all the hiccups out your season's season going and get some feedback and I'd be happy to share it?

Thank you very much.

Also, Johnson, um I'm just listening at this time, but um some of my questions were answered.

All right.

Well, that is everything on ID 826.

Uh that is everything on the stated agenda.

Um, sir, you've been in the audience for a while.

Do you have anything you'd like to testify on in front of the committee today?

Uh sure.

All right.

Do you want to mind introducing yourself?

Name for the record.

My name is Steven Marciniac.

I'm uh president with my wife uh in board two.

Thank you, Mr.

Chair.

Thank you, all the women, thank you, all the men, uh, for uh for uh having me here today.

And if you wouldn't also mind providing your uh address just for the record, one two zero four, Maple Avenue, Annapolis, Maryland, 21401.

And Marciniac.

Did I get that right?

That's right.

Excellent.

Well, thank you for joining us today.

Thank you for having me.

So, uh is as it relates to economic development.

I've uh I've been an entrepreneur uh for over 14 years now uh in the in the policy space.

So we help uh we help organizations, communities, advocate for their causes, contact their contact their aldermen, contact their uh state legislators, their federal legislators.

That's a software company I started right out of college at the University of Illinois and have run it ever since.

And in fact, my wife and I moved from DC, so we are located there, to here in Annapolis, uh as uh it's uh it's uh fantastic because we can still be very connected to the legislature and her job in government and so forth, and so it's been it's been perfect, and we've been here for uh almost two years now.

And since founding the company, and and and uh all these years later, I've uh I've thought about uh starting another company, and that company would be a distillery, and uh rather we would uh have a distilled spirit, um uh whiskey, and this is something that we've been working with a local Maryland distiller on.

Uh so not so much the production part of it, uh, but uh very involved in the process of the RD development.

Uh this is a um the the the part of it that is different than any other whiskey that you've ever had before is that it is a half alcohol content.

So what that means is instead of it being a 40% bourbon, which is pretty typical, sometimes higher than that, uh this would be a 20%.

So more akin to maybe uh uh any any other uh liqueur uh that you may uh enjoy with a full whiskey flavor to it.

Um in fact uh we distill that we distill the whiskey down to the 20% and then we build it back up with natural flavors.

Okay.

The reason why I'm here in front of you today is because uh as my wife and I, who who's an attorney, uh, reviewed uh the code, it's our understanding that um there uh a uh a tasting room uh would not be allowed uh in in the city of Annapolis.

And so I was looking to uh to come here with you to uh in front of you today to see if there's a way to explore being able to do something uh of that nature.

Yeah, I've actually had that come up in casual conversations with different folks.

Um have you looked at where you want to set this up?

Um, that's a great question.

Uh preferably on Main Street.

Um it doesn't look like there's too many um real estate uh availabilities at the moment, uh, but that would be where we'd like to locate.

Um, and it would be a pretty small establishment too.

We're looking for uh just a few seats at a bar, nothing extravagant to serve our 20% um alcohol.

So you'd be doing, I'm sorry, I'm drilling into your business plan here, feel like Shark Tank.

Shark tech government edition.

So you'd be doing your distillation and the tasting room in a main street location.

So currently we're working with a contract distiller located in in Maryland.

Um I believe on that liberty to say it's it's McClintock distilling, which is located in Frederick, uh, and they've been doing really big things for the Frederick community.

It's my understanding that there's uh a uh a um kind of a market house uh location that I believe that the city is coming together on to where they're gonna offer different food options, and then McClintock is going to be the um the provider of different uh their distilled spirits, and so uh it's it's a it's a model uh that I think uh at least from a tasting room perspective, generally speaking, uh the city of Frederick uh has done has done very well with.

Uh they also have another distillery, 10th ward.

Those are both um operations that have the distilling in-house.

We would mainly be working with this contract distillery at least as it stands now, um, or any uh future plans.

So if you're not doing the production on site, would a typical um I'm looking at a zoning map of the city right now.

Um Main Street's C2, which is conservation district uh business, which already has like a bar as a permitted use, bars and restaurants.

Um how would a tasting room not be covered underneath that?

So what what differentiates your business model from that other use that reopens up the zoning code?

Like I want to make this work.

I'm just trying to figure out like why what we got in the code's not.

Sure.

Yes, so great question.

So there's uh there's a couple things there.

Uh number one uh is uh as far as the production goes, I I think we would still require an M1 license uh because we would uh still have some operations as far as the bottling would be done and we'd be bringing it in.

Uh, but it sounds like there's have to be food involved with that or something of that nature, and so this would only be related to alcohol, and and uh and because those food operations would just increase just so many different variables of it, and we're looking to keep it as as simple as possible.

Okay, so it's the food requirements that's right.

So all those bars are technically restaurants.

Yes, that's correct.

Uh, with alcohol service.

Would your tasting room, I guess what makes it a tasting room and not a bar, is you are producing and selling your own product.

That's correct.

Okay.

I mean, I I really like this idea and I want to try and make it work.

Devil is always in the details.

Um, have you connected with Adam here and tried to?

So Adam here is our uh economic development director, and um I am a big fan of him because he is a say yes, let's figure it out type of guy.

So um please get connected with him and we can try and figure out a way forward on this.

Uh I can't help you find real estate, but I think we can try to figure out a way to at least make the code work.

Uh do any of my colleagues have questions?

Yeah, Alderman Savage?

Yeah, thanks for taking the time to come talk to us today.

I I love the idea.

You know, a lot of the towns I go to, you know, Killington, um, their smaller towns, even on the eastern shore, have their own distillery of one kind or another.

Um it is kind of odd that we don't have anything like that.

And so, you know, I mean, as they say, we're a drinking town with a saline problem.

I don't think it's gonna be, I don't see why anybody would be object to it.

I've always thought the city's law as far as requiring food with with booze is kind of an odd thing, but I don't know if it comes from Maryland state law or what.

But in any case, rather than digging into it too much here, like the chair said, I encourage you to get with Adam and Adam, if you could let us know what the exact barrier is, so we can figure out if we wanted to try to change it.

Um I think that'd be a good place to start.

So we still have perfect.

We'll connect to me to move on.

Excellent.

Thank you so much, Adam.

I appreciate that.

Thank you.

So uh for folks at home, because Adam didn't say that into a microphone, is I guess the main issue is we don't have a definition of tasting room.

Let's I give you my card, let's connect and talk about it.

I'm a great chairman.

Otherwise, Johnson, do you have any questions?

This sounds really great to have here in Annapolis, but um I'm in favor of it be something different, something new.

So we can always try new ideas and new businesses.

So it sounds great to me.

So we're gonna do what we have to do, knowing my colleagues over here, so we'll see.

We'll keep in touch.

Thank you, all the woman.

Well, thank you again for waiting this entire meeting to just share your business idea and kind of share what you'd want to do.

Uh I think entrepreneurs like you bring a lot of innovation and cool ideas to the city, and we'll try to find a path forward for you, man.

Okay, thank you, Mr.

Chair.

Do you have anything else you'd like to share with us?

That would be all today.

Alright, well, thank you so much for joining us.

Thank you.

Thanks.

Alright, do we have anything else for the good of the order today?

All right.

Well, I have one.

Uh now that my day job is hopefully calming down a little bit.

I am going to try and wrangle folks either the end of this month or in August for a tour of the Seafarers Union.

When I get those dates set, I will let you all know.

Uh and that way we can try to get a group with us, uh, our economic development team, uh, Ana Ronda Workforce Development and the Marine Trades Association of Maryland down to tour their school in St.

Mary's County.

Uh carpooling would be awesome if we are able to do so.

Uh I think this is a really good potential partnership.

Uh and you know, worst case scenario, at least we can go down to St.

Mary's County and see where I went to school and maybe stop by my favorite roadhouse bar.

All right, everybody, thank you so much for joining us today.

Uh can I get a motion to adjourn?

So moved.

Can I get a second?

I'll second.

All those in favor of adjournment, say aye.

Aye, aye.

Bye.

Boom.