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Blackwood president says Maryland tech tax and permitting delays complicated move to Annapolis maritime district
Summary
Ryan Morris, president of Blackwood, told the Economic Matters Committee that Maryland’s 3% “tech tax” and inconsistent, late-stage permitting (notably bathroom/ADA requirements) extended his company’s move into Annapolis but city economic development staff helped speed approvals; Blackwood plans internships and Naval Academy capstone partnerships.
Ryan Morris, president and owner of Blackwood, told the Annapolis Economic Matters Committee on March 4 that his maritime-focused cybersecurity firm recently completed a move into the city’s maritime district but encountered months-long permitting delays and a new 3% Maryland “tech tax” that cut competitiveness.
Morris said the tech tax can materially reduce the margins of small technology firms, calling the 3% levy “a lot” for businesses with thin margins and estimating it can amount to as much as 20% of gross margin in certain bids. He said that fiscal pressure briefly put the company’s decision to locate in Maryland into question, but that personal ties to the region and the firm’s maritime focus led Blackwood to stay and invest in Annapolis.
Morris credited city staff for helping the move succeed. Adam Strat, the city’s economic development manager, and planning and zoning reviewers — specifically Chris Dubiaak — were singled out as providing timely guidance that helped Blackwood proceed. Morris said earlier contact with city economic development would have eased the process.
Much of the delay came after property acquisition, Morris said. He reported the formal permitting process lasted about six months, and that inconsistent code interpretation and late-stage change requests — notably demands that required bathroom renovations outside the original scope — repeatedly pushed back construction. “We wanted to add two ADA‑approved bathrooms on the first floor,” Morris said; he told the committee inspectors repeatedly required unplanned work on the upper floor that lacked elevator access and was out of scope.
City staff acknowledged the concerns and described steps to reduce friction. Strat said the economic development office now includes its contact information in the automated emails applicants receive when they file commercial permits so staff are aware of incoming applications earlier in the process; he said staff receive automated notifications and are trying to be a clearer entry point for applicants. Strat also highlighted connections to local training partners — including community college and Naval Academy capstone programs — that Blackwood and similar firms can use for workforce and internship pipelines.
Morris said Blackwood expects to host internships for local high‑school and Naval Academy students and to use its facility as an off‑site collaboration and up‑skilling center. He noted the company’s broader network — “we’ve got employees in 26 states” and work with large national clients — and said having a local facility will bring suppliers and partners into the city, benefiting hotels and restaurants.
The committee thanked Morris and staff for the briefing and discussed follow‑up steps such as clarifying code language that led to inconsistent interpretations and ensuring applicants know how to contact economic development early in the process.
The committee did not take a formal vote on policy changes in the presentation; Morris and staff said they would continue working with planning and zoning to streamline the path for similar businesses.
