The Rules and City Government Committee of the Annapolis City Council discussed ordinance O-20-25 on the proposed transfer of city-owned property at 932 and 935 Spa (Spiro) Road to the Anne Arundel County Resilience Authority to pursue federal and state Brownfields remediation funding. The committee approved an amendment adding a reverter clause — that the property shall revert to the city within up to seven years if remediation is not completed — but deferred final committee action to the July 23 meeting so the Resilience Authority and additional staff can brief the full council and the public.

Why it matters: The administration says the transfer is intended to allow a quasi-governmental partner to take ownership so the site becomes eligible for large remediation grants that the city cannot receive while retaining title. Committee members expressed support for pursuing Brownfields funds but pressed for clearer limits in the ordinance about the scope of the transfer, the timeline, and financial liability for remediation costs.

Committee members and staff spent substantial time clarifying which portions of the parcel are included in the sale, how the city will complete a required subdivision before conveyance, and what legal and financial obligations remain with the city. Ashley Leonard, assistant city attorney, and Mike Lyles, city attorney, explained the transaction will be structured as an arm’s-length sale (likely for a nominal amount) so the Resilience Authority can hold title and access grant funds. Mike Lyles said the sale is commonly done “for a dollar or something nominal so they can take ownership.”

Director Michael Vogel, director of public works, told the committee the seven-year period in the draft instrument is the maximum length tied to grant program timelines and that the deed language can be changed to read “up to seven years” so the property may revert earlier if remediation finishes sooner. “The seven years is just the maximum length of the grant,” Vogel said. He added the draft sale includes a condition that the deed not become effective until the city completes an internal subdivision so the correct lots (Lot 1 versus Lot 2) are conveyed.

Committee members repeatedly stressed that retaining clarity in the ordinance is important because the sale is only one step in a multistage redevelopment and remediation program. Several members said the legislation should be limited to enabling remediation and access to grant funds, and should not bind the council to future development plans such as the Choice Neighborhoods Initiative (CNI). Melissa Maddox Evans, executive director of the Annapolis Housing Authority (HACA), described conceptual redevelopment plans that HUD’s CNI would consider but noted those plans are contingent on remediation results. She told the committee the CNI application and planning work are underway and that CNI reviewers expect a plan that is subject to change based on environmental outcomes.

The committee also pressed staff on process items: state and local code generally require two appraisals for surplus property sales, the City must complete a subdivision to create distinct tax IDs for the parcels in question before conveyance, and the Brownfields grant application deadline creates urgency to pursue parallel tracks. Committee members emphasized they did not want the urgency to eclipse careful drafting; one said the aim was not to stop the work but to “get it right.”

Action taken: Committee members approved a drafting amendment (putting a reverter clause and the phrase “up to seven years” into the deed language) and then voted to postpone formal committee action on O-20-25 until the Rules Committee meeting on July 23 so the Resilience Authority can appear and the public can be heard at the scheduled public hearing. The ordinance remains subject to further amendments and the normal public hearing process before it can be advanced to second reader.

What remains unresolved: The ordinance draft does not yet specify the sale price (the draft contained a placeholder), exact remediation cost shares if Brownfields funding is insufficient, or detailed lease or ground-lease terms for any housing authority or city offices that may be located on remediated land in the future. Committee members asked staff to provide the Resilience Authority’s bylaws or governing documents and to clarify which portions of the parcel are Lot 1 (the parcel to be conveyed) and Lot 2 (the parcel the city intends to keep). Staff said appraisals requested from the Maryland Department of Assessments and Taxation had been submitted and that tax-ID assignment for subdivided parcels will follow completion of the subdivision process.

Votes at a glance: The committee approved the amendment adding a reverter clause (unanimous) and then unanimously voted to postpone action on O-20-25 to July 23. No final committee recommendation on the ordinance was adopted.

Looking ahead: Committee members requested that representatives of the Resilience Authority attend the July 23 committee meeting (or an agreed joint session) to answer detailed questions about the authority’s mission, governance, and return-of-property practices. The public hearing on O-20-25 remains scheduled for the next council public hearing; committee members said they expect to review public testimony and may further amend the ordinance before a second-reader vote.