Bel Air staff propose modest rent and deposit increases for Armory marketplace incubator

Town staff told commissioners on March 31 that the Armory marketplace incubator lease rates will be updated to reflect market and operational costs while remaining below average market rents.

Angela Robertson, who presented the fee review, said the first‑year lease rate being proposed is $10 per square foot (up from $8), with incremental increases each anniversary year (roughly an extra $100 per month at unit scale). Robertson said the program historically offers below‑market rent to incubator tenants; staff noted an average town rate of about $20 per sq ft and said the Armory units lack some amenities (no running water in units, shared restrooms and concrete floors), which keeps the incubator intentionally below market.

Staff also recommended adding security‑deposit language to the fee schedule and raising a damage deposit from $250 to $500 to better cover potential repairs or unpaid utility pass‑throughs. Robertson said the incubator program uses several deposits: a refundable key deposit ($75), a $500 liquidated‑damages deposit to encourage tenants to locate in Bel Air (forfeited if they relocate outside town), and a $500 security/damage deposit to capture repairs or unpaid BG&E utility charges; the proposal would align amounts across deposits.

Commissioners discussed whether the increased deposit would dissuade applicants; staff said the program remains affordable (sample monthly rents cited were $559–$742 depending on unit size) and noted the incubator keeps a waiting list and has consistent interest. Staff also reported two units will open in 2026, and the review committee screens applicants before final selections.

Robertson recommended the Board receive the resolution and set a public hearing; no final rate adoption occurred at the work session.