Arlington Economic Development FY 2019 PROPOSED BUDGET HIGHLIGHTS - - PowerPoint PPT Presentation

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Arlington Economic Development FY 2019 PROPOSED BUDGET HIGHLIGHTS - - PowerPoint PPT Presentation

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Arlington Economic Development FY 2019 PROPOSED BUDGET HIGHLIGHTS General Fund & Tourism Promotion Fund County Board Work Session Monday, March 19, 2018 4:00 PM Making Arlington a leading community VISION that is vibrant , accessible and

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FY 2019 PROPOSED BUDGET HIGHLIGHTS

County Board Work Session

Arlington Economic Development

Monday, March 19, 2018 4:00 PM

General Fund & Tourism Promotion Fund

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Making Arlington a leading community that is vibrant, accessible and resilient, today and in the future.

Become the Technology Innovation Center of the U.S. To continue to develop Arlington County as an economically vital, competitive and sustainable community by providing leadership and services to the business, real estate development and visitors services sectors of the Arlington economy.

VISION MISSION

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Department Overview

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Arlington Economic Development

Business Investment Group

  • FY18 year-to-date:
  • 1.43 million square feet

assisted

  • 11,154 total jobs*
  • Retention/Expansion: 19

deals, 1,181,285 square feet

  • New Business: 8 deals,

247,788 square feet BizLaunch

  • FY18 year-to-date:
  • Business outreach total: 2,300
  • 45 workshops (75 by yr. end)
  • 438 counseling appointments
  • 100 counseling appointments

and 9 workshops in Spanish

  • Key topics: starting a

business, marketing, financing and government contracting. Communications

  • Earned Media Impressions:

2.8B

  • Media Value: $147.5 M
  • Social Media: Fans/Followers:

6,538 Impressions: 976k

  • Web Traffic: Sessions – 33k,

Users – 24k, Pageviews – 73k

*Jobs # includes 8,000 from Deloitte retention-expansion (450,000 s.f.)

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Department Overview

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Arlington Economic Development

Arlington Convention & Visitors Service

  • $119M in state and $89M in

local tax receipts (2016)

  • 247M domestic ad

impressions to leisure & meetings audiences

  • 150K StayArlington website

sessions

  • 26.4K group room nights

booked

  • 13K visitors served in person

Arlington Cultural Affairs

  • Enriching Lives: Arlington Arts and

Culture Strategy​ progress

  • Cultural Facilities Task Force –

Create Vision and Principles​

  • Artspace Arts Market Study –

Identify Potential Cultural Facility Projects​

  • Arlington Art Truck – NEA funded

mobile artist-in-residence​ launch

  • 293 artists paid for arts activities
  • New website launched

Real Estate Development

  • Initiated studies of current and

future commercial market conditions and opportunities in the Columbia Pike and Lee Highway corridors.

  • Construction progressing at

Ballston Quarter on schedule for delivery Fall of 2018.

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Way Forward Updates

Arlington Economic Development

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  • Strategy: Nurture pipeline provided by brokers and VEDP while gathering intel on targeted geographies

and national competitiveness.

  • Examples: New York – Ed Tech, San Diego – Cybersecurity, D.C. – Broker Outreach

Marketing Missions

  • Strategy: Brand Arlington as a place where innovation happens and federal funding is available. Lead

with content to curate targeted companies through panels, speaking engagements and events.

  • Examples: Consumer Electronics Show – Las Vegas, SXSW – Austin, Collision – New Orleans

Trade Shows

  • Strategy: Implement innovate programs through which to collect leads. On average it requires 1,000

leads for two qualified prospects.

  • Examples: Startup Arlington Program, Dongsheng Entrepreneurship Competition

Lead Generation Activities

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Business Retention and Expansion

Arlington Economic Development

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  • Executive Luncheon for C-level executives
  • Arlington Premiere with 500+ attendees
  • Industry events and retention visits with County management

Executive Networking Opportunities

  • Grand openings and ribbon cuttings
  • Joint marketing missions at tradeshows
  • Award nominations

Marketing & Promotion

  • Site selection assistance
  • Customized research and analysis (workforce, demographics, tax rates)
  • Market performance updates

Business Intelligence & Research

  • Connect businesses to County and community resources
  • Customized workforce assistance
  • Welcome letters (1,600+)

Liaison Services

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Business Investment Summary

Arlington Economic Development

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181* 32,200 5.4M 16

CLOSED DEALS SINCE JAN 2015 NEW AND RETAINED JOBS SQUARE FEET DEALS USED EDI GRANTS

1776 AIR** APT** Basket Savings** BNA** Eastern Foundry Grant Thornton** GW MFA Lidl** Nestlé** SineWave Axios*** Higher Logic*** Phone2Action*** Stardog*** VideoBlocks***

*127 AED-assisted **COF match ***Gazelle grant

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County Manager's FY 2019 Proposed Budget

Business Investment Summary (continued)

Investment in Economic Development Ongoing: $1.5 million One-time: $2.7 million Total: $4.2 million

FY 2019 funding meets current commitments Every $1 invested generates $5

12.7% 16.2% 20.0% 21.0% 17.3% 19.4% 5% 10% 15% 20% 25%

Countywide Vacancy Rate

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Summary of Proposed Budget Changes

FY 2018 Adopted FY 2019 Proposed

Change % Change

Expenses $8,964,571 $8,715,160

  • $249,411*
  • 2.8%

Revenue $354,165 $197,000

  • $157,165
  • 44.4%

Staff 56.2 FTEs 52.9 FTEs

  • 3.3 FTEs
  • 5.8%

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  • Budget reductions for consideration total approximately $433,000

(3.3 FTEs) (4.8% of FY 2018 Adopted Budget)

  • Revenue decreases due to updated accounting for closure of

Spectrum Theatre – Facility closed June 2017

Arlington Economic Development

General Fund

*FY19 expenses includes salary and benefit increases as well as CPRO and Lee Highway Alliance funds moved from non-departmental to AED

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Summary of Proposed Budget Changes

FY 2018 Adopted FY 2019 Proposed

Change % Change

Expenses $1,519,200 $1,546,700 +$27,500 +1.8% Revenue $1,519,200 $1,546,700 +$27,500 +2.2% Staff 7.0 FTEs 7.0 FTEs +0 FTEs +0%

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  • Revenue includes $246,700 ongoing General Fund transfer
  • Proposed budget reflects anticipated revenue from Transient

Occupancy Tax surcharge reauthorization – VA General Assembly Budget Bill with 3-year sunset currently pending approval (Mid- April for Governor’s signature)

Arlington Economic Development

Tourism Promotion Fund

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Detail: Proposed Reductions

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Eliminate the Strategic Partnerships Director/BIDs Partnerships Executive Liaison Function

Service Impacts Budget Impact

  • Duties of this position will be permanently reassigned to
  • ne Business Investment Group (BIG) staff person (1.0

FTE) resulting in 30% less time available for their primary responsibilities (e.g. addressing commercial vacancy rate)

  • Partnerships Liaison role will be permanently

reallocated to Director’s Office staff.

  • BIDs will receive fewer staff resources (e.g. to attend

meetings or facilitate internal discussions with County staff) from AED than in prior years

Change:

  • $143,231

Staff Impact

  • 1.0 Partnerships Director

(vacant)

Arlington Economic Development

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Detail: Proposed Reductions

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Eliminate Funding for the Greater Washington Hispanic Chamber of Commerce

Service Impacts Budget Impact

  • Discontinues AED’s formal annual funding to

GWHCC

  • Will require revisiting the partnership arrangement

and discussing alternatives for managing an

  • ngoing relationship with GWHCC

Change:

  • $6,000

Staff Impact

N/A

Arlington Economic Development

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Detail: Proposed Reductions

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Decrease the Ongoing Commitment to Arlington Sister Cities Association by 10%, from $50,000 to $45,000

Service Impacts Budget Impact

  • Reduces ASCA’s current budget by approximately 4%
  • Also updates the agreement with ASCA to increase the

matching component of the grant from $10,000 to $15,000. Non-matching component will consist of $30,000.

  • Will require the organization’s reallocation of resources

and reprioritization of its existing program goals. The

  • rganization will need to increase fundraising or

cut/modify existing programs.

Change:

  • $5,000

Staff Impact

N/A

Arlington Economic Development

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Detail: Proposed Reductions

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Eliminate the Connect Arlington Marketing Program and Associated Business Development Staff

Service Impacts Budget Impact

  • Vision of Connect Arlington as an Economic Development

catalyst will not be fully realized

  • AED will not undergo any significant marketing or outreach

to businesses specifically targeted for potential early- adopters or likely users of the high-speed dedicated fiber network, and sector specific business development activities targeted to fiber users will not be offered.

Change:

  • $165,964

Staff Impact

  • 1.0 AED Specialist (vacant)

Arlington Economic Development

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Detail: Proposed Reductions

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Eliminate Connection Grants Funding (one-time)

Service Impacts Budget Impact

  • Connection grants will no longer be offered as a potential

business investment tool for recruiting businesses.

  • A review of the program’s business model is currently

underway with recommendations due to the Manager and the Board this spring.

Change:

  • $250,000

Staff Impact

N/A

Arlington Economic Development

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Detail: Proposed Reductions

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Eliminate the Cultural Affairs Humanities Program

Service Impacts Budget Impact

The following programs will be cancelled or altered:

  • Moving Words: Juried poetry competition with winning

poems displayed on ART buses

  • Little Saigon: Oral history project documenting

Vietnamese community in Arlington

  • Legacy businesses: Oral history project documenting

historic businesses on Lee Highway and Nauck

  • Halls Hill Legacy Makers: Portrait project documenting

Halls Hill High view Park community leader

  • Poet Laureate: The Poet Laureate serves as an

advocate for poetry and the literary arts

  • The Poet is in: Mobile poetry pop-up creating customized
  • riginal poems for Arlingtonians.
  • Community Gardens: Oral history project documenting

the diverse cultural make-up of Arlington

Change:

  • $77,172

Staff Impact

  • 0.8 Humanities Programmer

(vacant)

Arlington Economic Development

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Detail: Proposed Reductions

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Eliminate the Cultural Affairs New Media Program

Service Impacts Budget Impact

The following programs will be cancelled:

  • Full Dome Projections: Original new media work

commissioned for David M. Brown Planetarium

  • How to Video Festival: Juried competition to create

entertaining instructional videos

  • Outdoor Digital Projections: Original projection

commission to celebrate Dia de los Muertos event

  • County Wandering Tours: Artist led walking tours

highlighting and reimagining the planning and evolution of the community.

Change:

  • $36,225

Staff Impact

  • 0.5 New Media Programmer

(vacant)

Arlington Economic Development

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Key Budget Considerations

  • Steady improvement in the vacancy rate (17.3% in Q2 2017) was set back by the NSF

departure and new office deliveries (19.4% in Q4 2017)

  • Support for business development to sustain overall program momentum
  • Continued funding to meet anticipated performance on incentive projects
  • Maintain tourism investment to leverage anticipated TOT surcharge renewal

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Arlington Economic Development