Hagerstown's city council is weighing whether to annex roughly 172 acres of Washington County land off Burkholder Lane and McDade Road, a move that would widen the city's tax base while opening the door to industrial development inside city limits. Washington County has imposed a temporary moratorium on data-center applications, but not a general moratorium on warehouse, distribution-center, or industrial development. The land could become a warehouse, a distribution center, or a data center, according to developers exploring the site.
As reported by DC News Now, the proposed annexation would expand Hagerstown's boundaries at a moment when the city faces a looming budget deficit. That fiscal pressure isn't new: Hagerstown's leadership presented an FY2027 budget plan in April 2026 identifying a $10 million recurring structural deficit tied to rising operational, utility, wage, and public safety costs, according to LocalNews1.org. Property taxes make up roughly 70% of the city's general fund revenues, per the same outlet's reporting.
The Parcels and the Pipestem
The proposed annexation area totals approximately 172 acres. The land is currently zoned Planned Industrial under Washington County rules and has been proposed for Industrial Mixed-Use if it enters Hagerstown.
The petition was filed jointly by Burkholder Lane Acquisitions LLC and McDade Road Acquisitions LLC, though city planning documents confirm no specific end user or detailed development site plan has been submitted. The city's mayor and council introduced Annexation Resolution A-2026-01 on August 25, according to reporting from iPublish MarketPlace.
Council Members Press for Answers
Council member Kristin Aleshire has said the city cannot exceed its capacity to deliver electric power and water, and he has called for full transparency about the property's intended use before any vote moves forward. Aleshire has identified infrastructure needs, the impact on adjacent property, and how the site would integrate into existing zoning classifications as key considerations the council must weigh.
Developers are exploring several possibilities for the Burkholder Lane and McDade Road site, including a warehouse, a distribution center, or a data center, per DC News Now's reporting. Any of those options would help address the city's revenue gap, but the data center scenario carries the most political weight given what's happening one jurisdiction over.
Why the County Line Matters
Washington County commissioners voted 4-1 on June 30 to enact a 12-month moratorium on accepting or reviewing data center applications, according to the Washington County Government. DC News Now reports the pause will last until early 2027. The moratorium applies to data centers within Washington County.
The moratorium wasn't enacted in a vacuum. Public testimony raised concerns about water supplies, electricity, and infrastructure. Residents called for a water-use study and grid-impact analysis before allowing more data centers — concerns that echo directly in Aleshire's warnings about the city's own power and water capacity.
Legal Guardrails on Annexation
Even if Hagerstown annexes the land, zoning remains an issue. Washington County Commission President John Barr has said the county commission and city officials are in communication on issues affecting both governments, per DC News Now's reporting.
The annexation process itself carries its own procedural timeline. It includes at least four newspaper advertisements spaced at least seven days apart, according to Justia Law.
Other Annexation Proposals
Hagerstown has evaluated annexing more than 212 acres altogether, including the already-completed annexation of the 36.78-acre Klein Farm property in August. Council members have also considered a separate annexation request tied to a Meritus Health site.
The debate over the Burkholder Lane and McDade Road parcels will hinge on infrastructure capacity, zoning integration, and the kind of transparency Aleshire has demanded before Hagerstown commits to expanding its borders. Whether the land eventually hosts a warehouse, a distribution center, or a data center, those issues will shape the outcome.
