Arlington Economic Development...attraction (6 million s.f.) Department Overview Arlington Economic Development 4 Arlington Convention & Visitors Service • $123M in state and $91.7M

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Arlington Economic Development

Thursday, March 14, 2019 4:00 PM

General Fund & Tourism Promotion Fund

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

Amazon in Arlington

Arlington Economic Development 2

• Fulfills longstanding community plans for Crystal City and Pentagon City.• Advances transportation and housing objectives with new sources of state support.• Brings substantial local and statewide investments in higher education and K-12 programming.

An Investment in Our Community

• After years of high vacancy rates and underutilized capacity, Crystal City and Pentagon City stand to gain $2.5 billion in new investment and occupancy of 4 million square feet of office space.

• Advances diversification of employment base with significant addition of private sector jobs.

A Turning Point for the Commercial Market

• The effort to recruit Amazon brought the entire region together. It was a shared success based on our outstanding workforce, transportation investment, quality of life, and collaborative problem solving.

• Partnership will continue as we begin to convene workforce resources from around the region.

A Regional Collaboration

Department Overview

3Arlington Economic Development

Business Investment Group

• FY19 year-to-date:• 7.16 million square feet

assisted• 39,035 total jobs*• Retention/Expansion: 12

deals, 913,863 square feet• New Business: 9 deals,

6,201,912 square feet

BizLaunch

• FY19 year-to-date:• Business outreach total: 2,418• 81 workshops (118 by yr. end)• 635 counseling appointments• 155 counseling appointments

and 12 workshops in Spanish• Key topics: starting a

business, strategic planning, access to capital, women entrepreneurship

Communications

• FY19 year-to-date:• Earned Media Impressions:

5.1B • Media Value: $281 million• Social Media: Followers: 10k;

Impressions: 2 million• Web Traffic: Sessions – 45k,

Users – 60k, Pageviews –150k

*Jobs # includes 37,850 from Amazon attraction (6 million s.f.)

Department Overview


Arlington Convention &Visitors Service

• $123M in state and $91.7M in local tax receipts (2017)

• 149M domestic ad impressions to leisure & meetings audiences

• 171K StayArlington website sessions

• 29K group room nights booked

• 17K visitors served in person

Arlington Cultural Affairs

• Create: Festivals, Lubber Run Series, Groovin’ on the Pike, art on the ART Bus, Arlington Art Truck, Public Art (Audience –198,003)

• Promote: 60K Subscribers, 11K Social Media Followers, $560K Media Value, 2M Impressions

• Support: Grants (25), Make Your Mark! (29 artists, 300 attendees), Entrepreneurial Training for Artists (10 workshops)

Real Estate Development

• Initiated studies of current and future commercial market conditions and opportunities in the Columbia Pike and Lee Highway corridors.

• Technical support for Child Care Initiative

• Support on comprehensive and current planning efforts

Business Investment Summary


248*75,65012.4M

18

CLOSED DEALS SINCE JAN 2015

NEW AND RETAINED JOBS

SQUARE FEET

DEALS USED EDI GRANTS

1776AIR**APT**

Basket Savings**BNA**

Eastern FoundryGrant Thornton**

GW MFALidl**

March of DimesNestlé**

ONRSineWaveAxios***

Higher Logic***Phone2Action***

Stardog***VideoBlocks***

*173 AED-assisted** COF match***Gazelle Grant


Business Investment Summary (continued)

Investment in Economic Development

Ongoing: $1.5 millionOne-time: $1.08 million

Total: $2.58 million

FY 2020 funding meets current commitmentsEvery $1 invested generates $5

12.7%

16.0%

19.6%20.8%

16.7%

18.4%

17.2%

5%

10%

15%

20%

25%Countywide Vacancy Rate

Summary of Proposed Budget Changes

FY 2019Adopted

FY 2020Proposed Change

%Change

Expenses $6,078,798 $6,076,193 -$2,605 -0.04%Staff 30.80 FTEs 31.80 FTEs +1.0 FTE +3.2%

7

• The proposed budget includes an addition of a 1.0 FTE in the AED BizLaunchprogram to support small businesses and help them adapt to new opportunities as a result of Amazon’s arrival. This proposal is based on an assumption that the County Board will review the Performance Agreement with Amazon and approve it prior to adoption of the budget in April.


General Fund – Without Cultural Affairs


FY 2019Adopted


%Change

Expenses $1,546,700 $1,546,700 $0 0%Revenue $1,546,700 $1,546,700 $0 0%Staff 7.0 FTEs 7.0 FTEs - -

8

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

• Revenue includes $246,700 ongoing General Fund Transfer

• Number one Virginia county for visitor spending since 2009


Tourism Promotion Fund

Detail: Proposed Reductions

9

Reduce Director’s Office/Operations Group Administrative Support Service Impacts Budget Impact

• Reduce the Director’s Office Operations budget by $11,000. The reduction will:

Decrease the number of parking validations offered by AED to visitors coming to its office located at 1100 North Glebe Road.

Limit funding for office equipment, repairs and replacement.

FY 2020 Change: -$11,000

Staff Impact

None



10

Reduce Business Investment Group Data SubscriptionsService Impacts Budget Impact

• Reduce $35,500 in Data Subscription funding. The reduction will decrease the number of licenses from 13 to 6. This reduction may delay completion of research done by the program. Duties and licenses will be reallocated among staff to facilitate research with the reduced number of licenses.

FY 2020 Change: -$35,500

Staff Impact

None


Key Budget Considerations• Adds position to support small businesses with the arrival of Amazon

• Incentives funded to meet our commitments

• Maintains support for business investment program to sustain momentum





March 14, 2019

Cultural Affairs Division

Arts General Fund Support (FY 2019- FY 2020)


Department / Program FY 2019 Adopted

FY 2020 Proposed

Cultural Affairs $2,255,549 $1,951,029

Arts Grants $215,810 $215,810

Art Facilities - Operating Expenditures (1) $356,296 $356,296

Library Art Shows & Exhibits (2) $5,000 $5,000

Parks & Recreation (3) $774,766 $664,500

Total $3,607,421 $3,192,635 (1) Reflects average annual operating expenditures at 3700 Four Mile Run, Arlington Arts Center, and Lee Arts Center.(2) Funds for staff time participating in the Exhibition Committee, coordinating and displaying art at each library location, working with the artists, and taking pictures for the library website. (3) Reflects funds for the Parks and Recreation Department's Community Arts Unit which implements the arts lending, arts camps, and other arts education programs and funds for art studio and art classes. The $100,266 decrease from FY 2019 to FY 2020 is related to two reduction options with no impact to the public (recognizing efficiencies in the Supply Room and Lending Program and reducing the level of temporary staff support in the Community Recreation Division) along with general decreases in personnel costs based on new staff and benefit elections.

Enriching Lives: Arlington Arts and Culture Strategy


• A collaboration of Cultural Affairs and the Arlington Commission for the Arts initiated in 2015, with significant community engagement; adopted in 2017 by the Arts Commission

• Comprehensive and holistic strategy for Arlington’s arts and culture sector includes:• Vision -- Arlington thrives as a community because arts and culture create a

sense of place, catalyze economic vitality and enrich the lives of all those who live in, work or visit here.

• Values1. Art has value in itself2. Arts and culture are a strategic community resource3. Arts and culture underpin economic development and sustainability

• Five Goals, 16 Strategies• All Cultural Affairs and Arts Commission work program elements align with goals and

strategies• Arts Organizations are encouraged to use Enriching Lives when developing grant

application

https://arlingtonva.s3.dualstack.us-east-1.amazonaws.com/wp-content/uploads/sites/5/2018/05/Enriching-Lives-Arlingtons-Arts-and-Culture-Strategy.pdf

Cultural Affairs Division Mission


Create, promote and support the arts, connecting artists and community to reflect the diversity of Arlington.

1. Support artists and arts organizations2. Integrate public art into built environment3. Present performing and visual arts programming 4. Promote Arlington Arts brand

Guiding Principles for Cultural Affairs Programming


• We bring art to the people -- we deliver fresh, high quality art and culture experiences where people live, work and play

• Everything we do is free and open to the public• We always leverage our scarce resources by collaborating with internal and

external partners• Artists are businesses, we pay them fairly for their work• We align our programming to reflect Arlington's diverse populations and

neighborhoods• We strive to introduce surprise, whimsy and fun into daily life

Role of Local Government in the Arts


Develop, support, and provide programs that serve diverse populations, groups, cultures, and geographic areas.• Pilot low-cost, experimental arts projects that have the potential for wide distribution and replication.• Integrate Public Art in the built environment to express community values, enhance the environment and

heighten awareness. This art is there for everyone and is a form of collective community expression. • Facilitate the development of artist-entrepreneurs.• Include artist residencies in government agencies to inspire new solutions and engagement

methods for connecting with the public.• Encourage the incorporation of "A"rts in STEM and Innovation initiatives.


FY 2019Adopted


%Change

Expenses $2,668,359 $2,352,839 -$315,520 -11.8%Revenue $197,000 $186,000 -$11,000 -5.6%Staff 22.10 FTEs 18.10 FTEs -4.0 FTEs -18.1%

18

• Eliminate 4 FTEs from the Facilities and Technical Services Unit and change 1 FTE to one-time funding.

• Retain $25,000 from FTE reductions for sound engineering contractor expense for Cultural Affairs programming.

• Conversation on transition or disposal plans for Cultural Affairs assets.



19

Eliminate CostumeLab Manager position

Service Impacts Budget Impact

• Eliminate CostumeLab Manager position

• Consider the transition or closure of professional costume shop and costume rental house for theatre, television, film and industrial shows.

• Located at Gunston Middle School• Inventory - 23,000 costume pieces (period garments, modern

dress, hats, shoes, uniforms, capes, corsets, armor, etc.)• Equipment - steam kettle dye vat, various sewing machines,

steamers, cutting tables, notions and basic fabrics• Arts grantees and educational institutions receive 33% discount. In

FY 2018, 4 supported arts groups received discounts:

FY 2020 Change: -$70,761

Staff Impact

• 1.0 Cultural Affairs Specialists ($70,761; 1 filled)


WSC Avant BardThe Arlington Players

Opera NOVAEncore Stage and Studio

Key Budget Considerations• The transition plan for CostumeLab could include:

• Disposal of inventory through appropriate means (sell, auction, transfer to Arlington Public Schools or nonprofit organization); and

• Move equipment to 3700 South Four Mile Run (4MR) to support the recommended 4MR Arts and Industry District.

• A transfer of assets or an operating agreement with a suitable arts organization, community group, or Arlington Public Schools.

• Transition plan will consider the needs of the 4 supported arts organizations that use the CostumeLab.



21

Eliminate Scenic Tech Manager position


• Eliminate Scenic Tech Manager position• Consider transition options for the Scenic Studio which provides

scenery construction space and technical assistance to community arts organizations.

• 7,200 SF construction shop at Gunston Middle School• Construction equipment (saws, sanders, power tools)• Manager provides professional guidance, monitors construction

safety and mentors students on theater arts• In FY 2018, 5 groups utilized the program at a rate of $35 a week –

WSC Avant Bard, The Arlington Players, Dominion Stage, Encore Stage and Studio, and Jane Franklin Dance.

FY 2020 Change: -$108,621

Staff Impact

• 1.0 Cultural Affairs Specialists ($108,621; 1 filled)


Key Budget Considerations

• The transition plan options for Scenic Studio could include:

• A transfer of assets or an operating agreement with a suitable arts organization, community group, or Arlington Public Schools.

• Transition plan will consider the needs of the 5 organizations that use the Scenic Studio.



23

Eliminate Audio Production Specialist; Mobile Stage not staffed by CAD


Audio Production Specialist

• Eliminates in-house audio and production-related functions to support County or community groups, including support for the Mobile Stage.

• Retain $25,000 from the position to use for contracted production support and sound engineer for Cultural Affairs programming at the Columbia Pike Library, Lubber Run Amphitheater, Rosslyn Jazz Fest, and Columbia Pike Blues Festival.

Mobile Stage

• 15-year-old mobile stage which requires two trained staff to operate. Cultural Affairs will no longer be able to staff as a result of reductions.

• Community groups rent through Special Events Process. Depending on organization-type, fees range from $500-$1,500. Groups will need to rent stage from private/outside vendors.

FY 2020 Change: -$83,143

Staff Impact

• 1.0 Cultural Affairs Specialists ($108,143; 1 vacant)


Key Budget ConsiderationsThe transition plan for Mobile Stage could include:

• Disposal of asset;

• Rent stage from private vendor when needed (~$3,000/event); and

• Provide referral list of vendors to Special Events Committee for external users



25

Eliminate Facility Manager at 3700 South 4MR


• 3700 South 4MR is a community art space with a black box theater, rehearsal spaces, dance studios, a recording studio, gallery, conference and training rooms and offices.

• Space & Services grantees used the facility approximately 60 rehearsals per month (5 grantees) and 54 performances in BBT (3 grantees) a year.

• Eliminate 1.0 Facility Manager position responsible for managing the County’s community art space at 3700 South 4MR. The responsibilities of this position will be absorbed by existing staff in the division.

FY 2020 Change: -$96,663

Staff Impact

• 1.0 Cultural Affairs Specialist ($96,663; 1 filled)

• 1.0 Facility Technical Services Director ($151,202; filled) position changed from ongoing to one-time funding


Key Budget ConsiderationsThe transition plan for use, scheduling, and operation for CAD facilities could include:

• Working with Arlington Public Schools to facilitate joint-use facility scheduling process.

• Evaluating the existing Space & Services grant program and moving to a cost recovery model for Cultural Affairs facilities and equipment at 3700 South 4MR.


Art Grants Program


• The FY 2020 proposed budget does not reduce funding for the Arts Grants Program.• FY 2020 Applicants include: 19 Arts Organizations; 8 Individual Artists

Transition in FY 2021• Cultural Affairs plans to alter the existing Arts Grants Program to better align with the

direction laid out in the “Enriching Lives” Arts and Culture Strategy adopted by the Arlington Arts Commission.

• Potential changes include:• New applicant criteria, for example programs or projects that:

• Address a local community problem, issue, or need through an arts-based lens;• Are publicly accessible (park, library, or non-traditional space); and• Involve a non-arts community partner. • Provide direct financial grants only.

Looking Forward in Cultural Affairs


• FY 2021 Arts Grants Program • Arts & Industry District

• Study of alternative models underway• Recommendations to County Board December 2019• 3700 becomes anchor and catalyst for Arts & Industry District

• Artspace Project: Spaces for artists to work and/or live• In progress - identifying a site and pre-development funding for a project

• Latitude Art Space in Virginia Square launches satellite George Mason University film and video program

• Negotiating Memorandum of Understanding• Public Art Master Plan Update




Thursday, March 14, 2019 4:00 PM

Arlington Economic Development...attraction (6 million s.f.) Department Overview Arlington Economic Development 4 Arlington Convention & Visitors Service • $123M in state and $91.7M

Documents