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Annapolis reports 16 new businesses and about 109 FTEs; BAI Group signs AI environmental lab lease
Summary
Economic Development staff reported 16 new businesses year‑to‑date (converted to ~109 FTEs based on a 20‑hour part‑time assumption), nearly $10 million in construction value over six months, and that BAI Group will open an AI lab employing about five engineers; committee members raised permitting and outdoor‑dining code concerns.
Economic Development staff told the Economic Matters Committee on July 1 that the city has seen a wave of new business openings and early investments while flagging persistent permitting bottlenecks and code‑implementation issues for outdoor dining.
Adam said the city recorded 16 new businesses opening their doors in the first half of the year and reported 96 new full‑time positions and 26 part‑time positions, which the presenter converted to roughly 109 full‑time‑equivalent positions assuming part‑time roles average 20 hours per week. He also said building‑permit activity over the same six‑month span represented nearly $10 million in construction value, though much of the largest work involved tax‑exempt projects.
On business attraction, Adam announced that BAI Group will locate an AI‑focused environmental lab in Annapolis — identified as B AI Labs — and that the lab intends to employ about five engineers focused on AI applications for environmental engineering, including training models and digital twins for wastewater treatment plants. “The company's name is BAI Group. The name of the lab is B AI Labs. Uh they'll be employing five people,” Adam said.
Committee members raised two implementation issues: permitting capacity and the new outdoor‑dining code. Members said the permitting pace has not kept up with demand and described situations where applicants faced confusion because new application requirements and interdepartmental procedures had not fully matured. The committee also heard anecdotal reports that some outdoor‑dining restrictions (including limits related to standing while drinking and music/dancing in some cases) made operations harder for businesses that saw looser rules in the immediate post‑COVID period.
Public comment during the meeting included a resident, Stephen Marciniac, who described plans to market a distilled spirit with a 20% alcohol content and asked the committee about zoning and tasting‑room definitions; members encouraged him to work with staff to identify licensing and zoning paths.
Next steps: staff will continue outreach to major prospects, monitor permitting throughput and follow up with businesses on outdoor dining implementation; staff also said they will coordinate with planning and zoning and report back with data to inform budget and code work.
