Economic Development Committee Work Session – April 10, 2026
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Economic Development Committee Work Session – April 10, 2026
The Economic Development (ECON) Committee met on April 10, 2026 from 9:30 a.m. to 12:43 p.m. in the 3rd floor Council Hearing Room. Chair Natali Fani-González presided. The committee considered Expedited Bill 13-26 (ICE Out Act) and reviewed the FY27 Operating Budget and FY27-32 Capital Improvements Program for six agencies. Key actions included a tied vote on an amendment to the ICE Out Act (sent to full Council), approval of the bill as introduced with unanimous support, and several budget reductions and motions on international travel.
Expedited Bill 13-26 – Building Permits – Immigration Detention Facility (ICE Out Act)
- The bill, sponsored by all Councilmembers, prohibits the Department of Permitting Services (DPS) from issuing building or use-and-occupancy permits for privately owned immigration detention facilities. The definition covers facilities used in whole or in part for civil immigration detention.
- Councilmember Dawn Luedtke offered an amendment requiring applicants to submit documentation demonstrating compliance with the National Environmental Policy Act (NEPA) and the federal Administrative Procedure Act (APA) before DPS could issue a permit. DPS Director Sabbakhan stated implementation would be straightforward.
- Councilmember Glass opposed the amendment, arguing the current administration would not comply. Councilmembers Fani-González and Balcombe supported it, believing it would strengthen the county’s legal position. Councilmembers Sayles and Glass voted against. The vote was 2–2, so the amendment did not advance and will be forwarded to the full Council.
- The committee recommended approval of Expedited Bill 13-26 as introduced (unanimous). The full Council is tentatively scheduled to consider it on April 21, 2026.
FY27 Operating Budget – Alcohol Beverage Services (ABS)
- The County Executive’s recommended budget of approximately $79.2 million (5.1% increase) reflects declining alcohol sales (projected 5.8% drop) and rising costs. The general fund transfer is projected to drop to $9.3 million.
- Director Durbin noted national trends: older generations drinking less, younger generations choosing different products. ABS is focusing on ready-to-drink options and local manufacturers. Store refreshes (Oak and Barrel rebrand) show positive returns for some locations, though refreshes are paused this year.
- Three CIP projects were approved: Conveyor System Upgrade ($1.7 million increase due to higher bids), Delivery Trucks Purchase ($585,000 for three trucks), and Retail Store Refresh (reduced by $1.2 million pending assessment).
- The committee recommended approval of the ABS FY27 Operating Budget and the three CIP projects as submitted. A worksession on ABS financial challenges is planned for fall 2026.
FY27 Operating Budget – Montgomery County Economic Development Corporation (MCEDC) Non-Departmental Account
- The County Executive recommended an increase of $470,451 (including a $339,000 enhancement and $131,000 inflationary adjustment) for a total budget of $6.2 million. MCEDC had requested $6.1 million.
- CEO Jared Smith reported that in FY26, MCEDC supported over 2,500 jobs and generated $1 billion in capital investment. He emphasized a return of $11.48 per county dollar invested.
- Council staff identified potential reductions, including the $131,000 inflationary adjustment. After debate, the committee voted to place the entire increase on the reconciliation list, but approved a separate motion to prohibit any county executive international travel funds for the first six months of FY27, pending a strategic plan. The motion passed without objection.
- Chair Fani-González requested a fall briefing on MCEDC’s international business strategy and asked that MCEDC seek private funding. Councilmember Sayles requested the scope of work for the strategic plan consultant.
FY27 Operating Budget – WorkSource Montgomery, Inc. Non-Departmental Account
- The County Executive recommended a $250,000 increase (total $3.69 million) including $170,000 for two new staff at the Upcounty American Job Center (a career advisor and a business services consultant).
- CEO Anthony Featherstone reported 1,500 federal workers served at the Federal Workforce Career Center (FWCC) since October 2025, with 20 verified job placements (many more expected after state data lags). The center is funded with $700,000 for 15 months.
- Councilmember Glass expressed concern about the placement rate and moved to reduce the $170,000 enhancement by half (to $85,000) by eliminating the business services consultant position, citing overlap with the Small Business Navigator program. The motion passed unanimously.
- The committee also accepted reductions of $240,000 (FWCC funding adjusted to 9 months) and $57,395 (miscalculation correction) without objection.
- The amended budget was recommended for approval.
FY27 Operating Budget – Conference and Visitors Bureau (Visit Montgomery) Non-Departmental Account
- The County Executive recommended an inflationary increase of $58,000 (total $2.88 million). The committee discussed the hotel tax funding structure (7% mandated plus additional appropriation of $953,000).
- CEO Lisa Groff presented data showing occupancy down 5.7% regionally, but noted strategies to offset federal travel declines: targeting corporate and association markets, with booking production up 51% year-over-year.
- Council staff identified a potential reduction of the amount above the mandated 7%, but the committee agreed to pause that discussion and approved the budget as submitted without objection.
FY27 Operating Budget – Conference Center Account
- The County Executive’s recommendation includes a small increase for wage adjustments and maintains a required reserve of $400,000. The conference center (operated by Marriott) is recovering post-pandemic, but faces risks from federal administration changes and labor disputes affecting county use days.
- The committee approved the budget as submitted without objection, with a note to clarify a $15,737 item in the management committee.
Key Outcomes
- Expedited Bill 13-26 recommended to full Council with no amendment (unanimous). Amendment (Luedtke) failed 2–2; forwarded to full Council.
- ABS FY27 budget and CIPs approved as submitted.
- MCEDC FY27 budget approved (with enhancement on reconciliation list); international travel funds for county executive prohibited for first six months of FY27, pending strategic plan.
- WorkSource Montgomery budget amended: $170,000 enhancement reduced to $85,000 for career advisor only; $240,000 FWCC reduction approved; $57,395 reduction accepted.
- Conference and Visitors Bureau budget approved as submitted.
- Conference Center budget approved as submitted.
- Next steps: Full Council action on Expedited Bill 13-26 tentatively April 21; fall worksessions on ABS and MCEDC international strategy.
Meeting Transcript
Good morning, everyone. This is the economic development committee work session before we start dealing with important things related to the budget. That exciting budget that the Ghana executives sent to us. We are going to first talk about expertise bill 13-26, building permits, immigration detention facilities, ICE out act, as everyone knows. The council never really deals with legislation during the budget, but I made the exception of taking only immigration related bills just because of the urgency that we have in our nation. So we're gonna kick off this session today with that bill, which is led by Councilmember Glass, Council President Natalie Fanny Gonzalez, Councilmember Stuart, Fritz and Kat, Evans Yerwandle, Ming Sales, Council Vice President Balcon, and Councilmember Luki. So that means every single person join on this bill. With that, I'm gonna turn it to Councilmember Glass to kick us off, and then I'll turn it to staff so we can go through this bill. I don't want to say quickly, but efficiently, because we have a lot going on today. Appreciate you. Do you want to say something? And I appreciate you, uh, Madam President, Madam Chair. Uh as you noted, this expedited piece of legislation, the ICE Out Act is being supported by every single member of this council because we are sending a signal to our community that we want to protect every resident. And we see what is happening up uh in Western Montgomery uh in Western Maryland, where uh ICE and federal agencies are attempting to build uh immigration detention center. Um, and we want to make sure that we get ahead of that and say that ICE is not welcome to do so here in Montgomery County. We want to make sure that every resident feels welcome, safe, and protected, uh, and we are being proactive unanimously, collectively, wholly as a community, and I very much appreciate the council present for making uh for making the time during our very busy budget season to accommodate this and other pressing matters that are before us. So with that, I'll yield back to be efficient. Thank you very much. Uh, I'm gonna ask DPS to please also come forward uh with that. Um legislative attorney kick us off. Uh good morning, committee. So expedited bill 1326 uh was introduced on March 3rd, and it does two things. First, it defines an immigration detention facility, which was not previously defined in county cold in county code. Um, and it prohibits DPS from issuing both a building permit or use an occupancy permit for a privately owned immigration detention facility. Um for the definition, it would be any building, facility or structure used in whole or in part um to house or detain individuals for civil immigration violations. This is very similar to a definition that is in state law currently. Um and then for the building permit and use and occupancy permit. I will flag here that the fiscal impact statement actually did note that because part of the definition says in whole or in part, they'll of course have to be a case-by-case determination when um permits come in. Um, because for a lot of these we've seen it's partial reuse of a building instead of an entire building. Um a public hearing was held on March 24th. Uh testimony noted um poor conditions of iCE and that it disrupts communities and threatens families and supported the bill, noting county facilities shouldn't be used for ongoing legal and humanitarian violations. Um there's also an RESJ impact statement. Um the impact statement was positive, uh noting positive impacts on racial equity and social justice in the county. Um it also talked a bit about trust policies. I know you've seen that in some of the other RESJ statements, um, and noting that this would be an equitable policy proposal. Uh the climate assessment actually noted little to no impact on addressing climate change goals, um, which doesn't often happen in our building permit ones. Um, but the idea here was that more often ICE is purchasing an existing building and that repurposing has fewer greenhouse gas gas emissions than building a whole new building. Um and a quick note here um DPS has confirmed they do there's some questions about how building permits work for government versus private entities. Um if a federal agency is leasing privately owned buildings and spaces, they do typically go through that building permit process. Um, so moving on to page three, uh two more impact statements here. Um not expected to impact revenues or increase county expenditures for the fiscal impact statement. Um a lot of interesting things in the economic impact statement. Um on the one hand, it would reduce opportunities for construction firms and people who operate detention facilities, um, but it would all also have potential benefits to businesses that are experiencing workforce and revenue disruptions because of immigration enforcement. So overall, the bill is likely to protect broader groups of both resident and U.S. born workers. So the economic impact likely leans positive. Um as some background here, there have been, as you've noted, uh many, many immigration bills floating around the state and the county and neighboring jurisdictions. Um I have a list of them for you at the bottom of page three into the top of page four. The theme you'll probably notice is everyone is taking a slightly different approach. Um, and so uh Howard County, um, as noted, had revoked a building permit and then issued emergency legislation saying only a government agency can apply.
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