Arlington Economic Development COUNTY MANAGERS PROPOSED FY 2021 - - PowerPoint PPT Presentation

COUNTY MANAGER’S PROPOSED FY 2021 BUDGET

County Board Work Session

Arlington Economic Development

Tuesday, March 17, 2020, 3:00 p.m.

General Fund and Tourism Promotion Fund

Ensure that Arlington is an economically vital, competitive and sustainable community

12.9% 20.8% 16.8% 18.7% 17.5% 14.8% 16.0% 10% 15% 20% 25%

NSF Departure

Office Vacancy Rate: 2Q 2012 – QTD 2020

Arlington Economic Development

Positive momentum

• n office vacancy,

challenges remain

Source: CoStar 2

15% to 16%

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Headwinds

Real Estate Competition

• High tenant expectations for office space (e.g. amenities, sustainability, design, technology)
• Delivery of more affordable Class A product along Silver line
• Less price advantage in a weaker D.C. office market

Legacy Space

• Small businesses in legacy spaces face challenges as properties are redeveloped

Continued Loss of GSA Leases

• Nearly 1 million square feet of major GSA leases leaving the County in the next 24 months

Talent

• Historically low unemployment
• Global demand for tech talent

COVID-19

• Global outbreak is having significant negative impacts on Arlington’s hotels, hospitality industry,

small businesses and artists

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Business Investment

FY 2020 Jobs: 3,100 Square Feet: 771,000 Business Engagements: 320 FY 2019 One-on-one Consultations: 1,030 Workshops: 129 Workshop Participants: 4,060 Over 58,000 clients served since 2002

BizLaunch Real Estate

FY 2020 Concluded Columbia Pike Market Study Support for transformative development projects (Rosslyn Holiday Inn site, Met Park, etc.)

Department Overview

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Convention and Visitors Service

CY 2018 Tax Revenue: $93.7 M CY 2019 Website Sessions: 302,000 Advertising Impressions: 114 M FY 2019 Create: 335 artists presented Support: 347 performances and events Promote: 483,187 social media reach FY 2020 Web Traffic: 201,400 pageviews Earned Media: 131.6 M impressions Social Media: 475,100 impressions

Cultural Affairs Communications

Department Overview

Realizing Arlington’s Commitment to Equity

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BizLaunch’s Small Women and Minority-Owned (SWaM) Equity Outreach

Who Benefits? SWaM businesses and entrepreneurs whose characteristics fall into one of the following categories: small, micro- enterprise, woman-owned, minority-owned

• r service disabled veteran-owned.

Who is Missing? Micro-enterprises and small businesses, especially those located in legacy commercial space and/or who are hard to reach through traditional marketing channels. Who is Burdened? Arlington’s small businesses and micro- enterprises who are unaware of, or have limited access to resources, because of schedule limitations, lack of technology

• r language barriers.

How Do We Know? Team with existing on the ground partners to analyze gaps in service and identify

• pportunities for SWaM businesses.

Realizing Arlington’s Commitment to Equity

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• Create new tools and programming for SWaM businesses
• Translate business resources into multiple languages
• Increase outreach through collaborative partnerships
• Launch inaugural SWaMmy Awards with the Commonwealth of Virginia
• Present Arlington’s “BizPossibilities” powered by Amazon Web Services (AWS)
• Increase access to Arlington’s purchasing processes via AED-DMF collaboration

BizLaunch’s Small Women and Minority-Owned (SWaM) Equity Outreach

Summary of Proposed Budget Changes

FY 2020 Adopted FY 2021 Proposed

Change % Change

Expenses $8,735,645 $8,964,301 +$228,656 +2.62% Revenue $186,000 $177,034

• $8,966
• 4.82%

Staff 46.40 FTEs 45.40 FTEs

• 1.0 FTEs
• 8
• The proposed budget includes the restoration of ongoing funding for the Cultural Affairs

Scenic Studio Manager and Facilities Manager positions (2.0 FTEs), and increased investments in community arts, neighborhood partnerships and provision of support to small businesses in the County.

• Elimination of the vacant Facility Technical Services Director position (1.0 FTE).*

Arlington Economic Development

General Fund

*This position was eliminated as part of the FY 2020 Adopted Budget and was covered with one-time funds in FY 2020 until the incumbent retired.

Summary of Proposed Budget Changes

FY 2020 Adopted FY 2021 Proposed

Change % Change

Expenses $1,546,700 $1,546,700

• Revenue

$1,546,700 $1,546,700

• Staff

7.0 FTEs 7.0 FTEs

• 9
• Proposed budget reflects anticipated $1,300,000 revenue from Transient Occupancy

Tax Surcharge

• Revenue includes $246,700 ongoing General Fund Transfer
• Governor Northam signed SB 107 and HB 62 removing the July 1, 2021 sunset date for

Arlington County’s authority to impose the Transient Occupancy Tax Surcharge

Arlington Economic Development

Tourism Promotion Fund

Community Arts Transition Plan Process

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County Board approves interim community arts transition plan and charges the County Manager with providing a long-term, strategic transition plan for the FY 2021 Budget.

April 2019 July – Nov. 2019 FY 2021 Proposed Budget

County Manager appoints the 15-member Community Arts Advisory Committee (CAAC) to develop alternative business models for Scenic Studio, CostumeLab and Mobile Stage and to recommend an improved scheduling process for joint-use theater space. CAAC presents final recommendations:

• Grounded in the efficient, effective and equitable delivery of services;
• Aligned with the County’s adopted Enriching Lives: Arlington Arts and Culture

Strategy (2017); and

• Provide greater opportunities for the community at large to make use of

Arlington’s unique cultural resources. Majority of CAAC recommendations included in the FY 2021 Proposed Budget and the County continues to explore additional CAAC recommendations.

Detail: Proposed Investments in Community Arts

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Proposal Type Budget Impact SCENIC STUDIO Restore ongoing funding for Scenic Studio Manager Restore ongoing funds $110,692 More flexible scenic studio operating hours Increased efficiency

• Revised Scenic Studio use fees

New revenue $12,900 COSTUMELAB Pilot – Signature Theatre to manage the CostumeLab inventory New one-time funding $70,000 Alternative service delivery JOINT-USE SCHEDULING Restore ongoing funding for Facilities Manager position Restore ongoing funds $101,350 Develop new scheduling process Increased efficiency

• MOBILE STAGE

Continue use for 2020 season; obtain vendor for future Alternative service delivery

• ARTS GRANTS

Funding for Arts Grants program New one-time funding $30,000 (total proposed funding for FY 2021: $245,810)

Detail: Proposed Budget Changes

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Small Business Investment through the BizLaunch Program Service Impacts Budget Impact

• Ongoing funding added to the BizLaunch program ($35,000) to

meet the rising demand for multilingual programming, technical assistance and events for small businesses in the County.

• One-time funding to create and deliver programming for small

businesses along Columbia Pike ($20,000). FY 2021 Change: $55,000

Staff Impact

None

Arlington Economic Development

Investments in Neighborhood Partnerships

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• Clarendon Alliance (CA) – $15,000 in new ongoing funding for staff benefits; $10,000 in new one-time

funding for marketing and operations, reflecting a 19% increase in base budget funding.

• Lee Highway Alliance(LHA) – $25,500 in new ongoing funding for Director salary and LHA’s office lease,

reflecting a 42% increase in base budget funding.

• Columbia Pike Revitalization Organization (CPRO) – $60,000 in new one-time funding to hire a business

engagement specialist. CPRO will collaborate with AED’s BizLaunch on the scope, hiring and work plan of the new position. FY 2020 Adopted FY 2021 Proposed Base Budget One-time Total Base Budget Ongoing Above Base One-time Total CA $80,000 $10,000 $90,000 $80,000 $15,000 $10,000 $105,000 LHA $60,500 $20,000 $80,500 $60,500 25,500

• $86,000

CPRO $350,000 $20,000 $370,000 $350,000

• $60,000

$410,000 Total $490,500 $50,000 $540,500 $490,500 $40,500 $70,000 $601,000

*Base budget includes ongoing funding only.

Key Budget Considerations

The FY 2021 Proposed Budget:

• Provides greater opportunities for the community at large to make use of Arlington’s unique cultural resources;
• Builds on FY 2020 small business investments by providing additional programming funds to support increased

demands;

• Maintains support for business investment program to sustain momentum; and
• Makes strategic investments in the Neighborhood Partnerships.

Looking ahead to future budget years…

• The removal of the TOT sunset clause provides new opportunity for long-term convention and visitors service

planning and strategy;

• Increased demand for small-business services and new initiatives for SWaM businesses could strain BizLaunch

staffing resources;

• Workforce will continue to be a challenge in working to attract, retain and expand companies; and
• Competitive real estate market necessitates continued investments for economic diversification and reducing

commercial vacancy.

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Arlington Economic Development

COUNTY MANAGER’S PROPOSED FY 2021 BUDGET

County Board Work Session

Arlington Economic Development

Tuesday, March 17, 2020, 3:00 p.m.

General Fund and Tourism Promotion Fund

BUSINESS IMPROVEMENT DISTRICTS

Ballston Business Improvement District Crystal City Business Improvement District Rosslyn Business Improvement District

NEIGHBORHOOD PARTNERSHIPS

Clarendon Alliance Columbia Pike Revitalization Organization Lee Highway Alliance

Appendix: Proposed Scenic Studio Fee Structure

Type of Space Current Schedule Proposed FY 2021 Schedule Arts Grantees Arlington Arts Orgs. External Arts Orgs. Small Bay (24' x 24') $35/week $100/week $150/week Medium Bay (30' x 40') $35/week $200/week $300/week Large Bay (30' x 50') $35/week $250/week $375/week Work Bench NA $15/day $20/day

Arlington Economic Development

Appendix: 2015 – 2020 YTD Successes

197

Companies

13.9M

Total Square Feet

82K

Total Jobs

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County Incentives*

*Includes Economic Development Incentive Grants only

Appendix: Investments in Neighborhood Partnerships

Arlington Economic Development

FY 2020 Adopted FY 2021 Manager’s Budget FY 2021 Budget Requested by Org.

Clarendon Alliance (CA) $90,000 $105,000 $140,000 Columbia Pike Revitalization Organization (CPRO) $370,000 $410,000 $482,000 Lee Highway Alliance (LHA) $80,500 $86,000 $111,000