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Montgomery County Council Meets on April 8 to Hold Public Hearings on the FY26 Operating Budget and Vote on Measures Focused on Reducing Commercial Vacancy Rates |
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On April 8: Council to vote on the Bethesda Downtown Plan Minor Master Plan Amendment, the Street Activation and Vacancy Elimination (S.A.V.E.) ZTA and components of the More Housing N.O.W. package |
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For Immediate Release: April 7, 2025 |
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The Montgomery County Council will meet on Tuesday, April 8 at 9 a.m., and the meeting will begin with two proclamation presentations. The first, presented by Councilmember Gabe Albornoz and County Executive Marc Elrich, will recognize National Public Health Week. The second, presented by Council Vice President Will Jawando and County Executive Elrich, will recognize Autism Acceptance Week. At 1:15 p.m., an additional proclamation, presented by Council President Kate Stewart with County Executive Elrich, will recognize Arab American Heritage Month.
The Council will conduct public hearings on the Fiscal Year (FY) 2026 Operating Budgets and FY26-31 Public Services Program and Fiscal Policy for the Montgomery County Government, Montgomery College, Maryland-National Capital Park and Planning Commission, WSSC Water and Montgomery County Public Schools (MCPS) at 1:30 p.m. and 7 p.m.
More detail on each agenda item is provided below.
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Vote expected: The Council is expected to vote on the Bethesda Downtown Plan Minor Master Plan Amendment. The plan recommends technical updates to the 2017 Bethesda Downtown Plan to improve implementation of recommendations related to new parks, transportation infrastructure, a new recreation center and affordable housing within a plan area of roughly 450 acres. The Planning, Housing and Parks (PHP) Committee held meetings on March 10 and March 24 to review the plan. In addition, the Council reviewed and took straw votes on the plan at a meeting held on April 1.
A minor master plan amendment, like the Bethesda Minor Master Plan Amendment, revisits a specific portion of the approved and adopted master plan and reexamines certain elements. This minor master plan is focused on the implementation of the 2017 Bethesda Downtown Plan and doesn't reopen the entire plan. Existing zoning, parks, transportation and other recommendations remain unchanged.
Minor master plans follow the same process as master and sector plans, with community outreach, review and recommendation by the Planning Board, a public hearing, and review by the Council prior to adoption.
Vote expected: The Council is expected to vote on Zoning Text Amendment (ZTA) 25-01, Self-Storage - Civic and Institutional (Street Activation and Vacancy Elimination or S.A.V.E.), which would encourage street activation by allowing self-storage in buildings that have been 90 percent vacant for at least two years if a community-serving use is on the ground floor. In addition to the vacancy requirement, site plan approval would be required. Further, structural improvements would be limited so that future conversion to a residential or commercial use is not discouraged. In the current zoning ordinance, self-storage is only allowed in the CR zone if it is in the basement or cellar of a building used for other purposes.
The lead sponsor of ZTA 25-01 is Council President Stewart. Councilmembers Natali Fani-González, Andrew Friedson, Kristin Mink, Laurie-Anne Sayles, Sidney Katz, Albornoz, Dawn Luedtke and Council Vice President Jawando are cosponsors of ZTA 25-01. The PHP Committee recommends approval with amendments to require the applicant to obtain a use and occupancy permit within two years of obtaining site plan approval and to clarify that the boulevard restriction for on-site loading and unloading is for any boulevard street classification.
Vote expected: The Council is expected to vote on ZTA 25-03, Expedited Approvals - Commercial to Residential Reconstruction, which would create a Commercial to Residential Reconstruction Use, provide an expedited approval process for that use, and allow reallocation of the Floor Area Ratio (FAR) in certain employment zones. This zoning measure is part of the More Housing N.O.W. package.
ZTA 25-03 would create the commercial to residential reconstruction use, which will be defined as a building that is converted or demolished from a 50 percent vacant commercial building to a residential building. This new use would be allowed in the Commercial/Residential, Neighborhood Retail (NR), and Employment Office (EOF) Zones. ZTA 25-03 will also remove the residential restriction on FAR in the NR and EOF zones, so that total commercial-residential FAR can be used for residential.
The leads sponsors of ZTA 25-03 are Councilmembers Friedson and Fani-González. Councilmembers Luedtke, Balcombe, Sayles and Council President Stewart are cosponsors of ZTA 25-03. The PHP Committee recommends approval with amendments to: include the General Retail (GR) Zone; remove the 30 percent gross floor area cap on household living uses in the GR, NR, and EOF Zones; and place a cap on commercial development. The committee amendments also amend the intent statements for the GR, NR, and EOF zones; eliminate retail use from the GR and NR zones, with an additional amendment to allow ancillary retail with office; and make technical amendments. Councilmembers have requested additional amendments regarding to what extent the retail use is excluded, and in what zones. Those amendments are reflected in the Council staff memorandum.
Vote expected: The Council is expected to vote on Subdivision Regulation Amendment (SRA) 25-01, Administrative Subdivision - Expedited Approval Plan, which would create an administrative subdivision process for a commercial to residential reconstruction expedited approval plan to ensure that timelines are compatible in the event subdivision is necessary. This SRA is part of the More Housing N.O.W. package. As noted above, ZTA 25-03 would create a commercial to residential reconstruction use and provide an expedited approval process for that use.
The leads sponsors of SRA 25-01 are Councilmembers Friedson and Fani-González. Councilmembers Luedtke, Balcombe, Sayles and Council President Stewart are cosponsors of SRA 25-01. The PHP Committee recommends approval with amendments to consolidate the various expedited approval plans into one section under administrative subdivision plans.
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Vote expected: The Council is expected to vote on Bill 2-25, Taxation - Payments in Lieu of Taxes - Affordable Housing – Amendments, which would require the director of the Department of Finance to offer a payment in lieu of taxes for a residential development resulting from the conversion of a property that was designated for commercial use but had at least a 50 percent vacancy rate at the time of the development application.
To be eligible for the payment in lieu of taxes, the conversion of the property must comply with the requirements set forth in companion ZTA 25-02, ZTA 25-03 and SRA 25-01, and provide for a certain percentage of affordable units. As introduced, the bill would require the payment in lieu of taxes that would exempt 100 percent of the real property tax that would otherwise be levied for a period of 25 years.
Councilmembers Friedson and Fani-González are the lead sponsors of Bill 2-25. Councilmembers Luedtke, Balcombe, Sayles and Council President Stewart are cosponsors of Bill 2-25. The joint Government Operations and Fiscal Policy (GO) and Economic Development (ECON) Committee recommends enactment with amendments to increase the required percentage of affordable units from fifteen to seventeen-and-a-half percent; decrease the length of the PILOT from twenty-five to twenty years; and provide a sunset period so that the legislation has no further effect after ten years from the bill’s effective date, except that any agreements remain in place.
Additionally, the committee amendments include a transition provision so that properties which have already applied to either the Planning Department or Department of Permitting Services (as appropriate) may be eligible for the PILOT without reapplying under the new expedited process. The committee also adopted an amendment to clarify that property developments that do not require Planning Department review may still be eligible for the PILOT if they otherwise meet the same requirements, and that the relevant time for the vacancy requirement is at the time of application to the Planning Board or, when application to the Planning Department is not required, at the time of application to the Department of Permitting Services.
Introduction: The Council will introduce Bill 11-25, Child Care Coordination – Amendments, which would eliminate the Child Care and Early Education Officer and eliminate the Early Childhood Coordinating Council. The County Executive has indicated that the position of Child Care and Early Education Officer is no longer filled, and personnel are needed to fulfill other duties within the Montgomery County Department of Health and Human Services (DHHS). The bill would remove Section 44-4A in County Code, which would eliminate reference to the position as it relates to child care in public space. The bill also would remove Section 10A3 in County Code, which would eliminate the Early Childhood Coordinating Council, as the duties of the Early Childhood Coordinating Council have been largely transferred to the Early Care and Education Coordinating Entity established by Bill 42-21, Child Care – Early Care and Education Coordinating Entity – Established.
The lead sponsor is the Council president, at the request of the County Executive. A public hearing is scheduled for April 29.
Review: The Council will review the proposed FY26-31 CIP for WSSC Water, which includes nearly $4.9 billion in funding over the six-year period and represents a decrease of $1.8 million from the approved FY25-30 CIP. Under Maryland Public Utilities Code, WSSC Water must prepare and submit a six-year CIP proposal to the County Executives and County Councils of Montgomery and Prince George’s Counties by Oct. 1 of each year.
Unlike other County agency CIP proposals that are reviewed biennially, Montgomery County reviews the WSSC Water CIP every year. The FY26-31 CIP has five new projects, including the Fraley Farm West Water Main, which is a $1 million developer-funded project to extend a water main along Bowie Mill Road to serve 42 homes. Additional new projects include the Lead Reduction Program, Per- and Polyfluoroalkyl Substances (PFAS) Management Strategy, master planning and facilities planning and investment, and hi-Influent infiltration basin rehabilitation.
Vote expected: The Council is expected to vote on a resolution to approve the Comprehensive Solid Waste Management Plan 2025-2034. The plan includes information on the legal and regulatory environment for solid waste management and background on the County’s solid waste programs and facilities.
Pursuant to Sections 9-503 and 9-515 of the Environment Article of the Annotated Code of Maryland, the governing body of each county is required to adopt and submit to the Maryland Department of the Environment (MDE) a ten-year plan dealing with solid waste disposal systems, solid waste acceptance facilities and the systematic collection and disposal of solid waste. In addition, each county must review its solid waste management plan at least every three years.
The Transportation and Environment (TE) Committee recommends approval with an amendment.
Briefing: The Council will receive a briefing on the County Executive’s more than $7.66 billion FY26 Operating Budget. The County Executive has indicated that the budget reflects a continuing services budget, with strategic reductions and targeted enhancements. Budget increases reflect the increased cost of providing services due to inflation. The Council is expected to review a proposed 3.5 cent increase to the MCPS supplemental tax rate, a $168 increase to the Income Tax Offset Credit (ITOC) for eligible properties, an increase to the solid waste management charge fee, the use of more than $145 million from the County’s reserves, and other fee increases.
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Each item on the Council’s Consent Calendar can be found on the Council agenda for Tuesday, April 8, which is available on the Council website. |
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Unless otherwise noted, the Council will hold the following hybrid public hearings at 1:30 p.m. Residents can visit the Council website to learn about the multiple ways to provide testimony.
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Public Hearings on the FY26 Operating Budget |
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Public hearings: The Council will conduct public hearings on FY26 Operating Budgets and FY26-31 Public Services Program and Fiscal Policy for the Montgomery County Government, Montgomery College, Maryland-National Capital Park and Planning Commission, WSSC Water and Montgomery County Public Schools at 1:30 p.m. and 7 p.m.
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The Council meeting schedule may change from time to time. View the current Council and Committee agendas, Council staff reports and additional information on items scheduled for Council review on the Council website.
Council and committee meetings are streamed live on the Council’s web page via YouTube and on Facebook Live and can be watched on County Cable Montgomery on Xfinity/RCN 6 HD 996/1056, Fios 30, and on the CCM live stream.
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Contact:
Sonya Healy
240-777-7926
Sonya.Healy@montgomerycountymd.gov
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Additional Contact:
Benjamin Sky Brandt
240-777-7884
Benjamin.Brandt@montgomerycountymd.gov
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