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Council approves leases NDA funding; DGS says AI Innovation Center lease negotiations near final
Summary
County staff told the Council that a $200,000 placeholder for an AI Innovation Center lease will come in under that amount and that $3 million in current revenue was freed through capital budget maneuvers to support the MCPS bus depot relocation; the leases NDA was approved by hand vote and DGS said negotiations and final drafting are in progress.
The Council approved the Leases NDA for FY26 after county staff explained outstanding items related to an AI Innovation Center lease and a $3,000,000 escrow request tied to the MCPS bus depot relocation.
Rachel Silverman of the Office of Management and Budget described how state capital‑budget language excused Montgomery County from a local match for certain school projects this fiscal year and how staff leveraged capital switches to free up $3,000,000 in current revenue to support the bus depot move without jeopardizing MCPS capital projects.
Greg Austin of the Department of General Services told the Council the county needs appropriation before executing a lease and that negotiations over the AI Innovation Center lease are effectively finalized; he said the $200,000 figure in the packet began as a placeholder but that staff expect to come in just under that number once the final lease drafting is complete.
Judy Costello (economic development staff) explained why the AI Innovation Center is being pursued as a separate, non‑University of Maryland space that better suits the needs of AI companies (lockable offices, proprietary technology concerns). Council members asked for the exact lease number and projections for occupancy and revenue; staff said they will provide the final dollar amounts and projections once negotiations finish.
The Council approved the Leases NDA FY26 operating budget by unanimous hand vote.
