The Economic Matters Committee of Annapolis convened on September 17, 2025, to discuss significant updates regarding city leases and tenant improvements. The meeting focused on the current lease agreements, particularly the extension of a lease set to expire on June 30, 2033, which has been mutually approved for an additional 20 years, extending it to June 30, 2053.

Committee members discussed the rationale behind this long-term extension, emphasizing the need for tenants to secure financing for necessary improvements to the property. Key upgrades mentioned included essential repairs to the building's infrastructure, such as the bathroom and potential geothermal system enhancements. The committee acknowledged that these improvements are vital for maintaining the public asset's condition and functionality.

Alderman Huntley raised concerns regarding the automatic renewal process of the lease, suggesting that performance-based criteria could be implemented to ensure that tenants are incentivized to make necessary upgrades. Currently, the lease allows for automatic renewals unless the tenant is in default or opts not to continue. Huntley proposed linking rent increases to performance standards, as the current 5% increase every five years does not keep pace with inflation.

The committee noted that while tenants are responsible for general maintenance, there are no specific requirements for additional upgrades. This led to discussions about how similar leases, such as those with the Maritime Museum and Scribe, have structured their agreements to ensure substantial improvements are made in exchange for favorable lease terms.

Overall, the meeting highlighted the importance of balancing tenant needs with the city's interests in maintaining and improving public properties. The committee plans to further explore the implications of lease terms and tenant responsibilities in future discussions.