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As Amazon Moves In, Crystal City Business Group Works to Expand to Pentagon City, Potomac Yard

Crystal City’s leading business advocacy group is taking its most concrete steps yet to expand and represent Pentagon City and Arlington’s portion of Potomac Yard as well.

The Crystal City Business Improvement District is hoping to bump out its borders as soon as next year, according to documents submitted to the County Board. The BID plans to spend the next few months working secure the support of businesses in its adjacent neighborhoods, then finalize the change sometime in fiscal year 2020.

The business group, funded via a tax on properties in Crystal City, has been eyeing a potential expansion for months now, and the move took on increased importance once Amazon announced it would be setting up shop across all three South Arlington neighborhoods: the tech giant will have office space in both Crystal City and Pentagon City, and is spurring the creation of a new Virginia Tech campus in Potomac Yard.

The BID has already started to pitch the area to businesses as a cohesive “downtown” for Arlington, and is billing the creation of an “area-wide” BID as a way to “reinforce the complementary nature of these markets” when it comes time to lure new companies and residents to the area.

“In fact, the Crystal City, Pentagon City, and Potomac Yard-Arlington area has a total asset value of over $11 billion and represents a powerful economic engine for Arlington County, the region, and the Commonwealth of Virginia,” the BID wrote in its work plan for FY2020, delivered to the Board ahead of its meeting Saturday (Feb. 23).

The group’s new proposed borders would expand the BID’s reach down Army Navy Drive until it meets S. Hayes Street, putting major developments like Amazon’s future home near Metropolitan Park and the neighborhood’s Costco and Best Buy under the BID’s umbrella. However, the Fashion Centre at Pentagon City mall would not be included under the BID’s current proposal.

On the Potomac Yard side of the things to the south, the BID would extend its borders down Route 1 until it meets Four Mile Run (and the county’s border with Alexandria). That would pull in the large development that includes Lidl’s American headquarters and a Harris Teeter grocery store.

According to its work plan, the BID plans to spend the second and third quarters of the current fiscal year rallying support from business owners in Pentagon City and Potomac Yard. It also plans to move offices later this year, then hire more staff to account for its expanded borders.

The Board will also set the tax rate it imposes on Crystal City businesses to fund the BID as part of its upcoming budget deliberations. The BID is requesting that the tax rate remain stable, and when combined with a 6.8 percent jump in property values in the neighborhood, the group expects to pull in about $2.76 million in revenue this year.

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