La Plata — Town staff introduced Ordinance 25‑10 on Dec. 9 to establish tourism zones that would offer incentives to qualifying tourism‑related businesses located inside designated areas of the town.
Town Manager Chuck Stevens and Planning Director Don Dooley said Maryland legislation adopted in 2024 enables municipalities to create tourism zones. The draft before council would designate the first tourism zone to match the Town Sustainability Community District as approved by the Maryland Department of Housing and Community Development and would restrict eligibility to commercial entities with physical locations inside that zone.
Staff described the incentive package in the draft: a permanent permit/inspection fee credit for qualifying businesses capped at $1,500, and a one‑time town payment of up to $300 to cover a new business’s membership in an approved business association. Stevens said the $300 figure was chosen after reviewing Chamber of Commerce membership pricing and finding an entry‑level annual cost of roughly $305; the town’s payment would be limited to the first $300 and non‑recurring.
Stevens also described a shingle‑sign grant (up to $200 per award) intended to encourage approved sign installs in the downtown commercial core; the FY26 budget included $4,500 for that program. Staff estimated the net fiscal impact of the tourism credit would be minimal — less than 2 percent of permit revenues — and recommended council adopt Ordinance 25‑10 and set funding levels in the annual budget.
Council asked clarifying questions about eligibility (including limited retroactivity and a $1,000 historic‑preservation rehabilitation pathway for some existing businesses), how award counts would be set in the budget, and whether the town would approve the business associations eligible for the $300 payment. After discussion, council voted by roll call to move the ordinance to the legislative process for formal consideration.
What’s next: Ordinance 25‑10 will proceed through the town’s legislative steps; staff identified July 1, 2026 as an effective date to allow the council to include program funding in the FY27 budget cycle.