Subject
title
Adoption of the Shady Grove Metro Annexation Plan Petition ANX2023-00147; and setting the Public Hearing Date.
end
Department
CPDS - Management & Support
Recommendation
Adopt the Annexation Plan with a resolution (Attachment 1) for the WMATA-owned Shady Grove Metro Station and a portion of the CSX Transportation, Inc. Property (ANX2023-00147); set the public hearing date by adopting the public hearing resolution (Attachment 2). The public hearing resolution that was approved on October 23, 2023, when the Mayor and Council introduced the annexation is included as Attachment 3.
Change in Law or Policy
The proposal is a city-initiated annexation that will enlarge the corporate boundary by approximately 66.4-acres of land. If approved, the annexation area would be incorporated within the city’s corporate limits and be subject to the Charter, laws, ordinances, and regulations of the City of Rockville. Staff recommends Mixed-Use Transit District (MXTD-235) zoning for the property upon annexation.
Maryland annexation law does not allow cities to annex property without property owners consenting to do so. However, the Maryland Court of Appeals (now the Maryland Supreme Court) has ruled that a municipal corporation’s legislative body may introduce a resolution to annex tax-exempt land without obtaining the consent of the owners of such land. Public records show that the WMATA property, as proposed for annexation, has a tax-exempt status. There are no registered resident voters within the property. Therefore, per the Maryland Court of Appeals ruling, the Mayor and Council are not required to secure the consent of owners of the WMATA properties and initiate the annexation of such properties.
In addition to the WMATA property, the proposed annexation includes a portion of land owned by CSX Transportation, Inc. located in 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 letter of consent that states that CSX will not object to the City of Rockville’s proposed annexation, which meets the State law requirement (Attachment 4). 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.
Discussion
The Mayor and Council introduced the city-initiated petition for annexation of the Shady Grove Metro station and the WMATA properties in October 2023. The original annexation petition included the entire WMATA property on both the east and the west side of the Shady Grove Metro Station, including the CSX Transportation Inc. right-of-way, with an area of approximately 107.9-acres of land. The Council discussed the annexation and its related fiscal impacts at their work session in May 2025 and determined that the cost to provide public services, primarily police services, did not justify moving forward with the annexation at that time. In addition, the Mayor and Council directed staff to identify properties for potential annexation, as identified in the Municipal Growth Element <https://www.rockvillemd.gov/wp-content/uploads/2025/08/Rockville-2040-Comprehensive-Plan-Municipal-Growth-Element.pdf> of Rockville’s Comprehensive Plan (p.234) that would help offset the city’s cost of annexing Shady Grove Metro Station until it redevelops and generates revenue for the city, and to develop an outreach plan.
A multi-department staff team from CPDS, DPW, Finance and Police collaborated to identify a target list of properties for outreach. The outreach process concluded in January 2026, and staff presented results of the outreach efforts to the Mayor and Council on April 20, 2026, where the Council also discussed the annexation of the Shady Grove Metro Station. The Council directed staff to revise the annexation area and resume the process of annexation with only the western portion of the WMATA property that includes the Shady Grove Metro Station, and the CSX Transportation, Inc. railroad right-of-way property.
The property proposed for annexation at this time is approximately 66.4-acres of land. The developable land area on the west side primarily comprises a surface lot of approximately 15 acres (calculated using ESRI’s GIS mapping package). The remainder of land area on the west side, which is a part of the proposed annexation area, comprises of the WMATA Shady Grove Rail Yard located near the train station and is used to perform servicing and inspection functions for the Metro cars that will continue in the future.
The following updates have occurred since the May 2025 work session:
Ø WMATA conducted preliminary analysis and is advancing studies for development on the west side.
City staff met with WMATA staff on August 28, 2026, to review any plans for the station property. In response to the city staff’s inquiry, WMATA staff responded as follows:
o 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 (page 35), or the location with the least priority for development, in ’WMATAs 10-Year Strategic Plan for Joint Development <https://www.wmata.com/content/dam/wmata-com/migrated-assets/business/real-estate/upload/WMATA-10-Year-Strategic-Plan-for-Joint-Development.pdf>.
o 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. In June 2025, WMATA released a Joint Development Progress Report <https://www.wmata.com/content/dam/wmata-com/migrated-assets/business/real-estate/upload/2025-Joint-Development-Progress-Report.pdf>, where Shady Grove Metro Station was moved to Group 3 (page 11), that prioritizes sites for joint development solicitation. WMATA’s goal is to advance study for its west side property, advancing it for development, and begin the process of solicitation by 2032.
Ø RCPD is currently fully staffed and has made operational changes to improve coverage. They have also improved coordination with WMATA police.
Ø DPW is managing a CIP project Shady Grove WMATA Access Road Streetlighting (TA27), which is within the annexation area.
Ø Staff completed the first phase of the annexation outreach effort
Staff recommend that the Council move forward with the annexation. Both WMATA and Montgomery County would like to see high density development take place on the WMATA site as soon as possible. Some of the advantages of annexing the west side of the Shady Grove Metro station are the following:
Ø Tax revenue generated by future new development will add to the City’s tax base.
Ø New transportation facilities that are proposed on the west side include a new BRT station that will be funded by the County (no cost to the city).
Ø Because the east side metro property will become adjacent and contiguous to Rockville with the annexation as presented with the current option, the city can move forward with the annexation at the right time in partnership with WMATA.
Ø The annexation will still bring in the main Shady Grove Station for the city to improve its brand image by having three metro stations within its municipal boundaries.
Ø After Rockville’s annexation of the west side of the station, the City of Gaithersburg will not be adjacent or contiguous, diminishing the possibility of Gaithersburg annexing the Shady Grove WMATA property in the future.
Ø Other properties along Summerville Drive and Redland Road will become adjacent and contiguous to the city, improving the possibility of annexation of other areas.
A potential disadvantage of annexing the WMATA property is that development does not take place in the near future, and no revenue is generated since the WMATA properties are in the tax-exempt category.
Impact Statements
The WMATA Shady Grove Metro property with development potential currently serves as a transit facility with a large parking area to service commuters.
Equity -
WMATA is currently conducting a feasibility study for the property with the intent of redeveloping the west side of the station with a mixed-use development. It is expected that the annexation will have a positive impact on equity in the City of Rockville by providing additional residential units in a variety of configurations that can accommodate households of different sizes adjacent to a transit station. By adding mixed-income housing adjacent to Metro, any proposed development would concentrate new residents within walking distance of transit, support WMATA ridership, reduce reliance on surface parking, and reinforce Metro-supportive density in an existing employment and transit corridor.
The Housing Element of the Rockville’s Comprehensive Plan an increase in housing units in the city as a desired goal. Since any development would occur on an existing parking lot, it would not lead to the displacement of any other existing residents or businesses.
Environment - At the present time, the vast majority of the property serves as a parking area and a transit facility. With any development, the WMATA property can be improved into an attractive environment that advances public objectives by turning underutilized land into housing, affordable units, retail activity, jobs, public-realm improvements, increased park spaces, tree canopy, with improved stormwater management.
Safety and lighting on the west side of the Metro Access Road is a major cause of concern for the King Farm residents and DPW is developing a CIP improvement project (FY2027) for improvements that will result in an improved environment for Metro commuters.
Economy - At it develops, property values will likely increase and provide a revenue to the county and the city. Potential new development will generate jobs and residential density near Metro and improve the feasibility of future redevelopment on adjacent or nearby underutilized parcels. Development is expected to generate construction employment and permanent jobs through retail operations, property management, building operations, and ongoing services. The project will reduce transportation costs for residents by providing easy access to transit.
Mayor and Council History
The Mayor and Council introduced the annexation on October 23, 2023, and 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. The public hearing was originally set for January 13, 2025 (Attachment 3) where the annexation area included both the east and west side of the Shady Grove WMATA property, and the CSX Transportation, Inc. railroad right-of-way property, with a total land area of approximately 107.9-acres
The Council discussed the annexation and its related fiscal impacts at their work session in May 2025 and decided to delay the annexation to conduct further analysis on the public service impacts and related costs. On April 20, 2026, Mayor and Council discussed the annexation of the Shady Grove Metro Station and directed staff to revise the annexation area and resume the process of annexation with only the west part of the WMATA property that includes the Shady Grove Metro Station.
The public hearing resolution (Attachment 2) noting the current public hearing data is included for approval at the September 28 meeting.
Public Notification and Engagement
The Planning Commission received a presentation on the annexation plan at their meeting on February 26, 2025, and held a Public Hearing on April 23, 2026, on the annexation area as was originally proposed for both the east and the west side of the Shady Grove Metro Station WMATA property and the CSX Transportation, Inc. property, with a land area of approximately 107.9-acres. The 2009 Zoning Ordinance required that the Planning Commission hold a public hearing on the annexation plan and that the public hearing be advertised in a newspaper of general publication at least fifteen days before the hearing, and that written notice be mailed in accordance with the provisions of city code. The current zoning ordinance, that became effective on August 1, 2026, does not require the Planning Commission to hold a public hearing on the annexation plan.
The Planning Commission public hearing notice was originally published in the Washington Post newspaper on March 6, 2025, for the March 23rd public hearing, and then subsequently published on April 3, 2025, for the April 23 public hearing. As required by the City Code, staff provided notification by mail and email to surrounding jurisdictions and other governmental agencies, including the Montgomery County Council, Montgomery County Planning Board, Montgomery County Public Schools, the City of Gaithersburg, and Maryland Department of Planning. Representatives of property owners (WMATA and CSX Transportation, Inc.) were also notified. Additionally, staff notified the adjacent property owners of the annexation. This notification included information on the preliminary annexation plan, the time and dates of the public hearing, and the methods by which written testimony may be submitted.
Additional notifications were sent through the city’s Rockville Reports newsletter, Development Watch e-newsletter, and city-maintained email distribution lists to provide information on the preliminary annexation plan, public hearing dates, methods to provide testimony, and to keep the public updated on the process. An email message was also sent to the King Farm Citizens Assembly representative.
Per Montgomery County Planning staff’s request, City staff presented the annexation proposal to members of the Westside and Derwood communities (that are outside the city limits and adjacent to the east side of the proposed annexation area) on April 2, 2025, and more recently provided a presentation with the revised annexation boundaries to the community on June 17, 2026.
Similar notification procedures will be followed for the Mayor and Council public hearing scheduled for November 16, 2026, after the annexation plan is adopted on September 28, 2026. Per LG Article §4-406, for an annexation area over 25 acres, a municipality must publish at least four times at a minimum of weekly intervals in a newspaper of general circulation a notice of the proposed annexation and the time and place of a hearing on the resolution. Rockville will be publishing such notice in the Washington Post on October 1, 8, 15 and 22, in advance of public hearing.
Boards and Commissions Review
The Land Use Article requires that the municipality prepare and adopt an annexation plan for the area to be annexed. The 2009 Zoning Ordinance required the Planning Commission to prepare an annexation plan and hold a public hearing.
The current Zoning Ordinance, as effective August 1, 2026, requires the Planning Commission to prepare an annexation plan. Under the new code, the Planning Commission is not required to hold a public hearing.
In accordance with the provisions of the previous and current city code, the Planning Commission studied the area proposed for annexation and prepared a preliminary annexation plan, on the land area as was originally proposed for both the east and the west side of the Shady Grove Metro Station WMATA-owned property and the CSX Transportation, Inc. property, with a land area of approximately 107.9-acres.
The purpose of the annexation plan is for the municipality that is proposing to annex an area to affirm that the annexation is consistent with the municipal growth element of the municipality’s comprehensive plan. Per the requirements of the 2009 Zoning Ordinance, the Planning Commission reviewed the preliminary annexation plan at its meeting on February 26, 2025, and conducted a public hearing on the preliminary annexation plan on April 23, 2025.
As a part of its public hearing, the Planning Commission received the following testimonies.
1) One related to pedestrian safety at the WMATA property. The testimony noted that during icy and snowy events in winter, the parking lot is not adequately treated.
– The staff’s recommended response to the testimony is that WMATA, as the property owner, will continue to be responsible for maintaining roads within its property and providing snow removal and other related services. The city can advocate more with WMATA to ensure that snow removal services, which are crucial for safety and accessibility, are provided in a timely manner so that they do not pose significant safety hazards to the public.
2) The Planning Commission received testimony from Mr. Steven VanGrack, a city resident, in support of the annexation.
3) At the public hearing, the Planning Commission received oral testimony from Mr. John Becker, a city resident, supporting the annexation.
At its meeting on April 23, 2025, the Planning Commission approved the preliminary annexation plan (See Attachment 5 - Preliminary Annexation Plan), with the following findings:
• The proposed annexation is consistent with the City’s Municipal Growth Element.
• The proposed Mixed-Use Transit District (MXTD) designation for the proposed annexation area is appropriate, and
• The City has the capacity to provide services.
The Planning Commission transmitted its approved preliminary annexation plan to the Mayor and Council for adoption. Prior to approving the plan, several of the Commission members expressed concerns about the fiscal impacts of providing public services to both the east and west sides of the WMATA property. The proposed annexation area has been reduced to only include the west side of the WMATA-owned Shady Grove Metro property with CSX Transportation, Inc. railroad right-of way to 66.4-acres of land, alleviating some the concerns that were raised by the Planning Commission.
The Local Government Article, Section 4-415 of the Annotated Code of Maryland requires the city to adopt the annexation plan in advance of completing the actual annexation. Mayor and Council are scheduled to adopt the annexation plan, at their meeting on September 28, 2026.
Fiscal Impact
The Shady Grove Metro property will remain tax-exempt until development begins, and the timing of this development is currently unknown.
Since the type of development that may occur at this property in the future is unknown, it is difficult to estimate the fiscal impact. The City will be annexing the property with a MXTD-235 zoning that would permit a high-density mixed-use development in the future, which would provide real property tax revenue and income tax revenue from any new residents and/or businesses.
Once annexed, the city will be expected to provide police services to the property. As of FY2027, RCPD is fully staffed and has made operational changes to improve coverage which is expected to adequately address increased calls for service. The RCPD will continue to assess call volume, and response needs to determine the reasonableness of staffing levels.
Next Steps
The current schedule for the annexation process is shown below. The key next step for the Mayor and Council would be to adopt the annexation plan and set the public hearing date.
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Mayor and Council Actions (ANX2023-00147) |
Proposed Dates |
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Adoption of the Annexation Plan Adoption of resolution that sets the public hearing date |
September 28, 2026 |
|
County Review of Zoning Consistency |
September-November 2026 |
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Annexation public hearing |
November 16, 2026 |
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Adoption of the annexation resolution. Introduction of the Ordinance(s) to amend the zoning map to include annexed property. Adoption of Ordinance(s) to amend the zoning map to include annexed property (if layover period is waived) |
December 7, 2026 |
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Annexation is effective 45 days after enactment of the annexation resolution. |
Mid-January 2027 |