Committee backs codifying and expanding Move grant program, raising award cap to $150,000

The Montgomery County Economic Development Committee on July 6 recommended that the full council enact Bill 11-24, which would codify the county’s Move grant program and broaden who is eligible for rent-support grants aimed at reducing office vacancy.

Council staff told the committee the bill would formalize an existing pilot that began in 2014 and provide grants to businesses that relocate to, locate in, or expand within Montgomery County. Staff noted the county’s current office vacancy is 18.1% by CoStar’s measures and explained the bill would remove a 20,000-square-foot eligibility cap and increase the maximum award to $150,000 from the current $80,000.

Chair Natalie Fani Gonzalez said the committee should “follow the advice of council staff and eliminate Class A and B” wording from the ordinance and direct the executive to draft clearer definitions in regulation. Mr. Ali, the council staff presenter, explained the council and executive would rely on a regulatory process and third-party sources (CoStar) to identify office classifications rather than embed a strict statutory definition.

Discussion centered on how to preserve the program’s original intent—targeting higher-quality office space—while avoiding unintended openings that flood the program with small or owner-occupied spaces. Laurie Babb of the Montgomery County Economic Development Corporation summarized the program’s history and why Class A and B were emphasized originally, and Jean Smith of the Business Center said the Move program has used CoStar historically as a practical definition.

On eligible uses, staff proposed removing a line that specifically named craft alcohol production so that any use allowed in an office building could qualify; executive staff cautioned that some craft-production facilities operate in flex or industrial spaces that might not be captured if the definition is too narrow. The committee asked staff to provide historical award data for craft alcohol and similar recipients to inform future decisions.

The committee also approved several administrative and regulatory guidelines: increase the signed-lease window for eligibility from 90 to 180 days (discussed in testimony), adopt a 500-square-foot minimum for expansion grants to keep awards meaningful and manageable for staff, and retain a 36-month minimum lease term for expansion awards. Staff described a tiered subsidy schedule (e.g., $8/sq ft up to $60,000; higher per-square-foot amounts for larger leases; strategic industries eligible for up to $15/sq ft up to $150,000).

Members stressed enforcement safeguards already in place: the program uses application review, procurement processes and existing clawback provisions in EDF law to deter abuse. Staff said the bill moves some existing language into a different section but does not eliminate clawback authority.

The committee asked the executive and staff to return with a regulation that clarifies office-class definitions and reporting metrics, and to reconvene with data about who applied and received awards roughly one year after implementation. The committee’s final recommendation to the full council was to enact Bill 11-24 as amended and to monitor outcomes and available funding during future budget cycles.

What happens next: The committee’s recommendation will be transmitted to the full council for consideration. The committee instructed staff and executive agencies to draft regulations and return with a one-year evaluation of program use, costs, and equity impacts.