Subject
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Update on Annexation Outreach Efforts and Discussion on the Shady Grove Metro Station Annexation
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Department
CPDS - Management & Support
Recommendation
Staff recommend that the Mayor and Council move forward with the annexation of the west side of the Shady Grove Metro Station
Change in Law or Policy
The annexation process allows Rockville to include unincorporated areas in Montgomery County to be included within its municipal limits if the areas are identified in the maximum expansion limit area in the adopted Comprehensive Plan. Once annexed, the newly incorporated land would then be subject to the City’s Charter, laws, ordinances, municipal taxes, and regulations.
Discussion
At the May 12, 2025 meeting, staff gave a presentation to Mayor and Council discussing the benefits and potential costs of the annexation of the Shady Grove Metro Station. In order to help offset some of the costs identified, the Mayor and Council put the annexation process on hold and directed staff to conduct outreach to property owners to identify potential annexations to help offset this cost. More details on the discussion at the work session in May 2025 and related materials can be found at this link <https://rockvillemd.legistar.com/LegislationDetail.aspx?ID=7371622&GUID=B8F40D17-2815-4F8F-9F90-925EA006AFBC&Options=ID%7cText%7c&Search=annexation)>.
In response, an interdepartmental staff team from CPDS, DPW, Finance, and Police collaborated to identify a target list of properties for outreach. Keeping in mind the limitations on the city’s ability to annex, key factors considered for identifying properties for annexation outreach included:
• The property must be contiguous to the City boundary and within its maximum expansion limits as established in the comprehensive plan.
• The city must be able to provide adequate public services like police protection, and infrastructure such as streets and sidewalks per city standards, and utilities such as water and sewer.
• For annexations of private property, property-owner consent is required. Consent may be provided by an individual property owner, or, in areas with multiple owners, by at least 25% of registered voters and by owners representing at least 25% of the total assessed property valuation.
• Other considerations include determining whether the property is in or near floodplains, identification of known environmental hazards (i.e., fuel spills, contamination, and other hazards), potential costs of improved infrastructure, etc.
• If the city needs to annex county roads to meet the adjacency requirements, future maintenance costs will be incorporated into the impact analysis.
The map showing the properties that staff conducted outreach on can be viewed at the following link: Annexation Proposal <https://storymaps.arcgis.com/briefings/d7cbd206ac8b4b6eb9ab89c0249bc56a>. Staff contacted the property owners as outlined in the annexation proposal by a variety of means, including over 100 letters via USPS mail, emails, and phone calls. The reference map and staff actions with the outreach are outlined in the table, included as attachment to this report (Attachment 1- Areas targeted for annexation outreach and summary table).
In addition to the outreach efforts listed on Attachment 1, city staff also met with WMATA in December 2025 to review any plans for the station property. WMATA staff responded as follows to city staff’s questions on the status of any current studies:
• WMATA conducted a Joint Development Feasibility Study for the Shady Grove Metro Station in 2021. The purpose of the study was to evaluate market readiness, development potential, transit needs, environmental conditions, and site layouts. The study ultimately concluded that the site was not feasible to develop given the high cost of replacement transit facilities and other infrastructure. The station was thus placed in Group 4, or the location with the least priority for development, in WMATA’s Strategic Development Plans.
• The station and the surrounding properties were reviewed again in the spring/summer of 2025. WMATA is a transit agency, so it needs to prioritize and make necessary accommodation for transit needs before development. WMATA staff noted that after preliminary analysis, it would begin advancing studies on the WMATA land located on the west side of the station, since there are minimal transit facilities at that location. The analysis determined that the east side could likely accommodate all transit facilities and parking needs.
• WMATA’s goal is to advance study for its west side property, advancing it to Group 3, and begin the process of solicitation by 2032.
The outreach effort has largely concluded without any firm commitments from property owners to annex into the city. Staff are still engaged with a few property owners who have shown interest, including the Casey property at 16251 Frederick Road, and some in the Glenn Hills neighborhood.
Despite the limited success of the annexation outreach, staff recommend continuing the annexation process for the Shady Grove Metro Station, which is discussed in more detail below.
Proposed Annexation of the Shady Grove Metro Station
The Mayor and Council introduced the city-initiated petition for annexation of the Shady Grove Metro station and the WMATA properties in October 2023. This meeting began the statutory process to annex the property.
Since the work session in May 2025, city staff has continued to assess annexation options and potential fiscal impacts. Interdepartmental discussions have been held, with a particular focus on addressing public safety costs and concerns associated with annexing the entire WMATA property. As a result of this assessment, staff is now recommending the annexation of the western side of the property only, as shown in Figure 1. Staff believe this represents the best option to manage resources while capturing significant future redevelopment potential.
Specific departmental Actions have also been taken to address public safety concerns in the area. These actions algin with the updated recommendation and are described below.
• The Rockville City Police Department (RCPD) is now fully staffed, and the FY 2027 Proposed Budget provides for additional sworn officer positions to support both special units and patrol operations. Operational changes have also been made to more effectively address the area around the Shady Grove Metro Station. Additionally, RCPD has improved coordination with WMATA transit police which allows for more seamless coordination and response. If the west side of WMATA parcel is annexed, RCPD will monitor calls for service and assess any potential need for staffing adjustments in the future.
• The Public Works Department is developing a capital improvement project in its FY2027 CIP for designing and constructing streetlights on the WMATA Access Road between MD355 and Somerville Road at the Shady Grove Metro Station. The Access Road is owned by WMATA and included in the parcel that staff are recommending for annexation. The roadway is used by pedestrians, bicyclists, and commuters from the King Farm neighborhoods.
Figure 1 - Shady Grove Metro Station, West Side and CSX right-of-way (graphic representation)
In Addition to the actions described above, staff are recommending the option illustrated in Figure 1, because there are certain disadvantages to including the east side in the annexation, such as:
• WMATA does not have any plans for any near-term development on the east side.
• An existing stream bisects the property presenting environmental challenges for development.
• There are two existing parking garages on the east side of the property, and the cost of relocating or redeveloping the structures may be significant.
• The Department of Public Works has conducted a preliminary review of the water mains on the east side and concluded that there are potential related development restrictions.
• Rockville Police Department note that the crime rates are higher in garages that require additional calls of services that necessitate more police officers.
In addition to the WMATA property, the proposed annexation includes a portion of land owned by CSX Transportation, Inc. between the east and west sides of the WMATA property that serves as the railroad right-of-way. Under Section 6-103 of the Maryland Tax Property Article, the operating property of a railroad is subject to property tax. Since the CSX property is subject to a property tax and does not have a tax-exempt status, owner consent is required to introduce the annexation resolution. City staff reached out to the appropriate CSX staff and obtained a consent letter that states that CSX will not object to the City of Rockville’s proposed annexation, which meets the State law requirement. Since the CSX property under consideration is a railroad right-of-way, there are no residents in the area to be annexed, whose consent may be required for an annexation per the State Law.
As shown in Figure 1, the developable area on the west side primarily comprises a surface lot of approximately 16 acres. New transportation facilities that are proposed on the west side include a new BRT station that will be funded by the County. The remainder of the approximately 63 acres of land on the west side, which is part of the proposed annexation area, comprises the WMATA Shady Grove Rail Yard located near the train station, and is used to perform service and inspection functions for the Metro cars that will continue in the future. Staff have also included the CSX land in the proposed annexation option so that adjacency is achieved, and the city can move forward with the annexation of the east side at the right time when existing constraints of joint development are clearly identified in partnership with WMATA and/or a developer is identified.
Mayor and Council History
The Mayor and Council have discussed annexation several times in the context of the comprehensive plan and as an economic development tool.
As an implementation strategy to the comprehensive plan, the Mayor and Council introduced the annexation resolution for Shady Grove Metro Station and surrounding WMATA properties on October 23, 2023, in accordance with the Maryland Local Government Article § 4-404. The Mayor and Council also approved a resolution that provides specifics of time and place for the Mayor and Council public hearing as mandated by the State Law and the City Code.
On May 12, 2025, Mayor and Council reviewed the Planning Commission-approved annexation plan, conducted a work session on the fiscal impact of annexation, and decided not to move forward with the annexation at that time because of the high cost of police services.
Public Notification and Engagement
Staff engaged in a targeted comprehensive outreach effort utilizing various means such as USPS, emails, telephone calls, etc., to reach out to property owners as identified for this initiative.
Boards and Commissions Review
After the Mayor and Council introduced the Shady Grove annexation, the Planning Commission reviewed the staff-prepared annexation plan in February 2025 and conducted a public hearing on the annexation plan in March 2025. The Planning Commission supported the annexation but expressed concerns about the cost related to the addition of six police officers, as recommended, to support public safety concerns at the property.
Fiscal Impact
The proposed annexation of the Shady Grove Metro (west side only) is expected to generate fewer calls for service than the previously considered full-property annexation. The Rockville City Police Department (RCPD) is currently fully staffed, and the FY 2027 Proposed Budget includes additional sworn officer positions to support both special units and patrol operations. Upon annexation of the west side parcel, RCPD will monitor calls for service and assess any potential need for staffing adjustments in the future. Should the area experience significant residential and/or commercial development, additional property tax revenues are anticipated; however, additional resources may be required to maintain current service levels and response times.
Next Steps
If directed by the Mayor and Council to move forward with the annexation of the Shady Grove Metro Station as proposed, the following steps will be taken:
• Staff will coordinate with a surveyor to prepare a property description of the west side of the WMATA property to incorporate within the annexation resolution.
• Staff will then develop a timeline to outline the various steps as required by the city code and the state law, and bring it to the Mayor and Council to introduce the annexation.