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 Become the Technology resilient , today and in the future. Innovation Center of the U.S. MISSION 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.
Department Overview Business Investment Group BizLaunch Communications • FY18 year-to-date: • FY18 year-to-date: • Earned Media Impressions: 2.8B • 1.43 million square feet • Business outreach total: 2,300 • Media Value: $147.5 M assisted • 45 workshops (75 by yr. end) • 11,154 total jobs* • Social Media: Fans/Followers: • 438 counseling appointments 6,538 Impressions: 976k • Retention/Expansion: 19 • 100 counseling appointments • Web Traffic: Sessions – 33k, deals, 1,181,285 square feet and 9 workshops in Spanish Users – 24k, Pageviews – 73k • New Business: 8 deals, • Key topics: starting a 247,788 square feet business, marketing, financing and government contracting. *Jobs # includes 8,000 from Deloitte retention-expansion (450,000 s.f.) 2 Arlington Economic Development
Department Overview Arlington Convention & Arlington Cultural Affairs Real Estate Development Visitors Service • $119M in state and $89M in • Enriching Lives: Arlington Arts and • Initiated studies of current and Culture Strategy progress local tax receipts (2016) future commercial market • Cultural Facilities Task Force – conditions and opportunities • 247M domestic ad Create Vision and Principles in the Columbia Pike and Lee impressions to leisure & • Artspace Arts Market Study – Highway corridors. meetings audiences Identify Potential Cultural Facility • Construction progressing at • 150K StayArlington website Projects Ballston Quarter on schedule sessions • Arlington Art Truck – NEA funded for delivery Fall of 2018. • 26.4K group room nights mobile artist-in- residence launch • 293 artists paid for arts activities booked • New website launched • 13K visitors served in person Arlington Economic Development 3
Way Forward Updates Marketing Missions • 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 Trade Shows • 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 Lead Generation Activities • 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 4 Arlington Economic Development
Business Retention and Expansion Executive Networking Opportunities • Executive Luncheon for C-level executives • Arlington Premiere with 500+ attendees • Industry events and retention visits with County management Marketing & Promotion • Grand openings and ribbon cuttings • Joint marketing missions at tradeshows • Award nominations Business Intelligence & Research • Site selection assistance • Customized research and analysis (workforce, demographics, tax rates) • Market performance updates Liaison Services • Connect businesses to County and community resources • Customized workforce assistance • Welcome letters (1,600+) 5 Arlington Economic Development
Business Investment Summary 181* CLOSED DEALS SINCE JAN 2015 32,200 NEW AND RETAINED JOBS 5.4M SQUARE FEET 16 DEALS USED EDI GRANTS 1776 Lidl** AIR** Nestlé** APT** SineWave Basket Savings** Axios*** BNA** Higher Logic*** Eastern Foundry Phone2Action*** Grant Thornton** Stardog*** GW MFA VideoBlocks*** *127 AED-assisted **COF match 6 Arlington Economic Development ***Gazelle grant
Business Investment Summary (continued) Countywide Vacancy Rate 25% Investment in Economic Development 21.0% 20.0% 20% 19.4% Ongoing: $1.5 million 16.2% 17.3% One-time: $2.7 million 15% Total: $4.2 million 12.7% 10% FY 2019 funding meets current commitments 5% Every $1 invested generates $5 7 County Manager's FY 2019 Proposed Budget
Summary of Proposed Budget Changes General Fund % FY 2018 FY 2019 Change Change Adopted Proposed $8,964,571 $8,715,160 -$249,411* -2.8% Expenses $354,165 $197,000 -$157,165 -44.4% Revenue 56.2 FTEs 52.9 FTEs -3.3 FTEs -5.8% Staff • 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 *FY19 expenses includes salary and benefit increases as well as CPRO and Lee Highway Alliance funds moved from non-departmental to AED 8 Arlington Economic Development
Summary of Proposed Budget Changes Tourism Promotion Fund % FY 2018 FY 2019 Change Change Adopted Proposed 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% • 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) 9 Arlington Economic Development
Detail: Proposed Reductions Eliminate the Strategic Partnerships Director/BIDs Partnerships Executive Liaison Function Service Impacts Budget Impact Change: -$143,231 • Duties of this position will be permanently reassigned to one Business Investment Group (BIG) staff person (1.0 Staff Impact FTE) resulting in 30% less time available for their primary responsibilities (e.g. addressing commercial -1.0 Partnerships Director vacancy rate) (vacant) • 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 10 Arlington Economic Development
Detail: Proposed Reductions Eliminate Funding for the Greater Washington Hispanic Chamber of Commerce Service Impacts Budget Impact Change: -$6,000 • Discontinues AED’s formal annual funding to GWHCC Staff Impact • Will require revisiting the partnership arrangement N/A and discussing alternatives for managing an ongoing relationship with GWHCC 11 Arlington Economic Development
Detail: Proposed Reductions Decrease the Ongoing Commitment to Arlington Sister Cities Association by 10%, from $50,000 to $45,000 Service Impacts Budget Impact Change: -$5,000 • Reduces ASCA’s current budget by approximately 4% • Also updates the agreement with ASCA to increase the Staff Impact matching component of the grant from $10,000 to N/A $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 organization will need to increase fundraising or cut/modify existing programs. 12 Arlington Economic Development
Detail: Proposed Reductions Eliminate the Connect Arlington Marketing Program and Associated Business Development Staff Service Impacts Budget Impact Change: -$165,964 • Vision of Connect Arlington as an Economic Development catalyst will not be fully realized Staff Impact • AED will not undergo any significant marketing or outreach -1.0 AED Specialist (vacant) 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. 13 Arlington Economic Development
Detail: Proposed Reductions Eliminate Connection Grants Funding (one-time) Service Impacts Budget Impact Change: -$250,000 • Connection grants will no longer be offered as a potential business investment tool for recruiting businesses. Staff Impact • A review of the program’s business model is currently N/A underway with recommendations due to the Manager and the Board this spring. 14 Arlington Economic Development
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