In the fourth quarter of 2013, Arlington reported about $813 million in taxable retail sales in its March economic indicators study today. Over the same period in 2013, Arlington had about $786 million, a drop of 3.3 percent. The change can’t be attributed to the unusually snowy winter, either: nearly all of the snow this winter fell in the first quarter of 2014, after these numbers were recorded.
While the retail industry — which includes everything from restaurants to grocery stores to stands in the Fashion Centre at Pentagon City — lost $27 million in sales year-over-year, Arlington’s workforce grew 1.4 percent while its unemployment rate dropped from 3.9 percent in January 2013 to 3.3 percent in January.
In addition, housing prices were up across the board this February compared to last year, with a 2.2 percent bump in single family detached house prices, 3.7 percent for single family attached (like townhouses and duplexes) and a 4.7 percent jump in condominium prices, from $410,339 to $430,115.
Local retail broker John Asadoorian, of Asadoorian Retail Solutions, said the numbers don’t raise any alarm just yet.
“It’s hard to really discern what the drop means,” Asadoorian told ARLnow.com. “The only thing I could say is there hasn’t been that much new retail space delivered in Arlington, which means there hasn’t been a whole influx of new tenants, which means the mix in Arlington is stable. If it’s stable, is it still competitive with other jurisdictions that may be growing?”
Asadoorian referred to Tysons Corner and Georgetown as two areas whose growing retail options could be poaching customers from Arlington’s shops. However, several buildings under construction in Ballston and Rosslyn figure to bump the retail number back up in the coming years, he said.
While those buildings may help the retail market, they may not do wonders for the office vacancy rate in Arlington, which ballooned to 19.9 percent over the past year, a 3.7 percent jump over 2012. A significant chunk of that is from the 35-story 1812 N. Moore Street building in Rosslyn which is still looking for its first tenants.
The office vacancy rate in Rosslyn grew 8.4 percent year-over-year and sits at 25.2 percent, now the highest area in the county. Crystal City, still smarting from BRAC closures, is the second-most vacant neighborhood at 24.7 percent. Only the Clarendon-Courthouse corridor gained more office tenants than it lost last year, with its vacancy rate falling from 11.2 to 9.0 percent.
Restaurateurs Eye Rosslyn — Rosslyn has been long neglected in the restaurant and bar department, primarily because it has been viewed as a place where only fast casual lunch places can be successful. That may be changing thanks to Heavy Seas Alehouse, which has been doing boffo beer and dinner business since it opened last month. [Washington City Paper]
Streetcar Battles Continue — Arlington County Board member Libby Garvey continued her one-woman campaign against the Columbia Pike streetcar from the County Board dais last week. Garvey used her time in the County Board meeting to do a slideshow of streetcar systems that have well-exceeded their budget or which have performed poorly in wintery weather. Meanwhile, the streetcar remains the central issue in April’s County Board special election. [InsideNoVa, Greater Greater Washington]
Tribute to Terry Holzheimer — Acting Director of Arlington Economic Development Cindy Richmond has penned a tribute to her former boss, Terry Holzheimer, who died of a sudden heart attack on March 1. [Arlington Economic Development]
Grand Opening for Arlington Mill Residences — A grand opening ceremony will be held tonight from 4:00-6:00 p.m. for the Arlington Mill Residences, at 901 S. Dinwiddie Street. The four story, 122-unit apartment complex, located next to the new Arlington Mill Community Center, is 100 percent committed affordable. There was a long waiting list for those hoping to live in one of the units.
Arlington Woman on Jeopardy Tonight — Arlington resident Nancy Akerman, who works as a science policy fellow, will compete on Jeopardy tonight. The game show airs at 7:30 p.m. on WJLA (ABC 7).
Richmond Named Acting AED Director — Cynthia Richmond has been named the acting director of Arlington Economic Development following the untimely death of Terry Holzheimer. Holzheimer died of a sudden heart attack over the weekend. Richmond was serving as the deputy director of AED. Arlington County plans to begin a recruitment process to find a permanent director for AED soon. [Arlington County]
FBI Cracking Down on Corruption in N. Va. — The FBI has created a task force to investigate public corruption in Northern Virginia. Public corruption is the FBI’s “number one criminal investigative priority” at the moment and the agency has “cases in all categories in Northern Virginia.” [Loudoun Times]
Man Sentenced in $30 Million Fraud Scheme — A Florida man has been sentenced in a $30 million scheme that defrauded NASA into awarding contracts on false pretenses. Michael Dunkel, 60, was awarded contracts by NASA intended for minority-owned businesses by claiming he was an employee of an Arlington company supposedly run by a woman of Portuguese descent. Dunkel in turn paid kickbacks to the company. [Associated Press, U.S. Justice Department]
APAH to Purchase Apartment Building — The Arlington Partnership for Affordable Housing is purchasing the Arna Valley View apartments near Glebe Road and I-395. The purchase will allow 101 apartments to remain as committed affordable housing for at least the next 60 years. [Sun Gazette]
Fundraising for Pike Documentary Book — Photographer Lloyd Wolf is raising money to print a book based on photos taken by the Columbia Pike Documentary Project. [GoFundMe]
Photo courtesy Kimberly Suiters/All News 99.1 WNEW
Holzheimer, who turned 66 last month, died of a heart attack. A McLean resident, Holzheimer has served as Arlington’s top economic development official since 2005.
Arlington County issued the following press release about Holzheimer’s untimely passing.
Terry Holzheimer, director of Arlington Economic Development, (AED), has died, Arlington County Manager Barbara Donnellan confirmed today.
“Terry’s family has informed me that Terry died today of a heart attack,” Donnellan said. “I am deeply saddened by this tragic news. Our hearts go out to Terry’s family.
“Arlington has lost a dedicated public servant and a leader who worked for decades to build one of our nation’s most successful and stable communities,” Donnellan said. “Terry was respected across this region as a leader in economic development. His many accomplishments can be seen and felt across our County.”
“This is a double tragedy for Terry’s family,” Donnellan said. “Just six weeks ago, his wife of 34 years, Mary Benedette Pelletter-Holzheimer, died after a long illness.” Terry is survived by his daughter, Francesca, and her husband, Joseph Hammerstrom.
The family has not yet announced funeral arrangements.
From Holzheimer’s official county biography:
Terry Holzheimer was named director of Arlington Economic Development (AED) in March 2005. A veteran of the department since 1996, he previously headed AED’s Business Investment Group, focusing on business retention, recruitment, and economic research. He also was responsible for Arlington’s small business development efforts through AED’s BizLaunch Center.
Before coming to Arlington, Holzheimer served as Loudoun County’s director of economic development from 1989-96. His career also includes heading a management consulting firm, Development Advisory Service, Inc., that provided services to local governments throughout the country in housing and economic development. Earlier, he worked for the National League of Cities, consulting with city and county governments on redevelopment and rehabilitation programs.
Holzheimer has a Ph.D. from George Mason University in public policy, with a specialization in regional development. He holds a B.A. in economics from the University of Florida. He is a member of American Institute of Certified Planners (AICP) College of Fellows and is certified in economic development by the International Economic Development Council. He is a member of the adjunct faculty at Virginia Tech, teaching in Urban Affairs and Planning.
Arlington is “still sorting through the mess” of the BRAC closures that have boosted office vacancy rates, an Arlington representative told hundreds of Northern Virginia commercial real estate developers today.
Arlington, like other communities in the D.C. area, is experiencing weakness in the office market. The high office vacancy rate is exacerbated by new office buildings coming on the market and certain large employers (including military offices impacted by BRAC) leaving.
To combat that, Arlington is considering options providing certain incentives to attract new businesses and hang on to existing employers.
“We’re aggressively planning for the future,” Alex Iams, a commercial development specialist with Arlington Economic Development, told members of NAIOP, an association for commercial real estate developers.
“[BRAC] is still a four-letter word in Arlington for certain,” he said. “We did an aggressive plan for Crystal City, we’ve done planning along Columbia Pike. We have done planning for BRAC in Rosslyn as well, so we’re not only doing planning for the future, but now we’re aggressively positioning ourselves to hold on to what we have.”
Iams was one-fifth of a panel with the directors of economic development from Alexandria as well as Fairfax, Loudoun and Prince William counties. He told ARLnow.com that Arlington is considering tax incentives and other methods to try to encourage businesses to grow — and, just as importantly, stay — in Arlington.
“We’re trying to structure a policy on how to address office vacancy,” he said. “We haven’t done it yet, but you can expect to see it at the end of the season.”
With the delivery of the 35-story 1812 N. Moore Street last fall, Iams said Arlington’s office vacancy rate is now hovering around 20 percent, the highest it’s been in nearly a decade. Iams said projects like Monday Properties’ skyscraper, which is still unoccupied after being built “on spec” are “suffering the most, because it’s so much space all at once.”
Iams pointed to the success at 1776 Wilson Blvd, a five-story office building at the intersection of N. Quinn Street. It opened in winter of 2012 and is about 85 percent leased, he said.
What Arlington can do to solve its vacancy rate, Iams said, is to follow Vornado’s example in Crystal City when the first wave of BRAC closures saw the U.S. Patent and Trademark Office move to Alexandria.
“Vornado didn’t just sit on their hands,” Iams said. “There was an adaptation with rents and an increase in amenities nearby, and they transformed Crystal Drive into a retail center.”
Iams also cited Kettler Capitals Iceplex, Penrose Square and the Village at Shirlington as examples of “placemaking” the county has partnered with private businesses on to make specific areas more attractive to employees and residents.
The other economic development leaders lamented the lack of demand for office space while demand for residential units all over Northern Virginia is exploding, creating a tricky regulatory line to walk to ensure balance. Iams said Arlington, despite its vacancy rate, still sees demand for office development.
“We’re getting questions from our board and our community about approving more office space,” he said. “The office market also works in cycles, and we want different kinds of products available to be able to deploy when a certain company or tenant may be searching in our market.”
The National Endowment for the Arts (NEA) announced 59 “Our Town” grant awards totaling more than $4.7 million, and an Arlington project is among the recipients.
Arlington Economic Development-Arlington Public Art has been granted $75,000 to develop a public art project in the planned Nauck Town Square, which is intended to be the anchor for the Nauck Village Center. The County Board must give final approval for the grant as a formality, and that’s expected in September.
“The residents of the Nauck Community are truly thankful to the National Endowment of the Arts for their grant to assist us in planning a Town Square where all can enjoy its benefits and especially learn the history of Arlington County’s oldest African American community dating back to 1844,” said Nauck Civic Association President Dr. Alfred O. Taylor, Jr.
The NEA received 254 applications from across the country for this year’s Our Town grants. Grant amounts ranged from $25,000 to $200,000 with a median grant amount of $50,000.
“It’s very competitive. We’re very excited to be one of 59 chosen from across the country,” said Public Art Administrator Angela Adams.
The Lucky Seven store, which closed after a fire last year, previously occupied the site but was torn down earlier this year. The county had purchased the property at 2406 S. Shirlington Road in 2010 for $1.4 million.
The square eventually will take up the entire block between 24th Road South and South Shirlington Road. The county website says, “It will serve as a gathering place for residents to host a variety of community events and an area to showcase the neighborhood’s rich cultural heritage with its collection of public art.”
Arlington Public Art has commissioned landscape architect and artist Walter Hood to devise the plaza’s final design. Hood will engage Nauck residents and community leaders in the design process to create a plaza that tells the story of the Nauck community and its heritage. Adams credits Hood’s involvement as one of the reasons the NEA considered Arlington for the grant.
“I think that what we’re going to get with Walter’s involvement is a very sophisticated design that continues to make great public spaces here looking contemporary and fresh, but also reflective of the community,” said Adams. “The Nauck community has waited a long time for this.”
Community meetings to discuss the design of the project are expected to start this fall and go into next year. Construction is expected to begin in 2015.
“The County is looking forward to engaging Nauck residents and community leaders in the process of designing the plaza and art elements,” said Helen Duong with the Arlington County Department of Community Planning, Housing and Development.
Funeral for Arlington Firefighter Injured on 9/11 — A funeral will be held today for an Arlington firefighter who was a first responder on 9/11. Phillip McKee III suffered a severe leg injury while battling fires at the Pentagon following the Sept. 11, 2001 terrorist attack. He also inhaled toxic dust and later suffered from post-traumatic stress disorder. His family says McKee, 41, died from complications from those injuries. McKee, who held degrees from Yale and Harvard, was openly gay and is survived by his husband and partner of 15 years. [Washington Blade]
County Officials: No Subsidies for Gov’t Agencies — With the county still reeling from the impending loss of the National Science Foundation, Arlington officials are sticking to their guns and saying that offering tax breaks and other financial incentives to lure federal agencies is bad policy. Arlington Economic Development Director Terry Holzheimer is pushing for the General Services Administration to disclose additional information related to the decision to move the NSF to Alexandria by 2017. “None of it makes any sense,” Holzheimer said of the decision and its impact to other government tenants in Ballston. [Washington Business Journal]
Bluemont Trail Improvements — Arlington County crews will be widening a section of the Bluemont Trail between Buchanan Street and the Ballston Holiday Inn this month. Crews will also be removing obstructions and landscaping around the trail. [Bike Arlington]
SUPERNOVA Photos — Dozens of artists invaded public spaces in Rosslyn over the weekend for the SUPERNOVA Performance Art Festival. Some of the artists and their performances can be seen in a series of photos published the the Ode Street Tribune blog.
Democratic Primary Today — Democrats will go to the polls today in Virginia to vote in the primary for lieutenant governor and attorney general. Among the candidates is Arlington resident Aneesh Chopra, who’s running for lieutenant governor. Polls will remain open in Arlington from 6:00 a.m. to 7:00 p.m. [Arlington County]
The National Science Foundation, Arlington’s 12th largest employer, will be moving to new offices in Alexandria by 2017, employees at its Ballston headquarters were told today.
NSF employs 2,237 people in Arlington, according to Arlington Economic Development data. It’s the county’s 12th largest overall employer and its 8th largest government employer. Located in the Stafford Place I and II buildings at 4121 and 4201 Wilson Blvd, the NSF is also central to Ballston’s science and technology economy.
In a memo (below), NSF Acting Director Cora B. Marrett told employees today that the General Services Administration has signed a lease for a “new state-of-the-art building” at Alexandria’s Hoffman Town Center development, adjacent to the Eisenhower Avenue Metro station.
“We are told that the construction will take approximately three to four years to complete, so we anticipate a move to this new facility by the end of 2016,” Marrett wrote. “GSA has extended our leases at Stafford I and II for the interim.”
The National Science Foundation’s future in Arlington has been up for discussion since 2008, as the agency and the GSA considered whether to renew its Stafford Place lease, which was set to expire in December 2013. Arlington’s congressional delegation — Rep. Jim Moran and Sens. Mark Warner and Jim Webb — wrote a letter to the GSA in February 2010, urging the agency to renew NSF’s lease in Arlington.
Moving out of Arlington could have a “detrimental effect” on the National Science Foundation and on other scientific organizations that enjoy research synergies the Ballston area, like the Defense Advanced Research Projects Agency and the Virginia Tech Research Center, the lawmakers wrote.
“We believe… Arlington [is] the ideal location for NSF Headquarters,” the letter said.
So far, the lawmakers have not commented on the planned NSF move. Attempts to reach numerous Arlington County and Arlington Economic Development officials were not successful.
The National Science Foundation describes itself as an “independent U.S. government agency responsible for promoting science and engineering through research programs and education projects.”
NSF’s 15-year lease in Alexandria will save a total of $65 million on rent, and will provide the government with $35 million “which can be applied to further rent savings, reduce costs of relocation, and reduce overall operational costs,” according to a press release.
The move, a coup for economic development in Alexandria, “would constitute one of the largest transfers of federal workers in Northern Virginia since the Patent and Trademark Office departed Crystal City for Alexandria in 2005,” the Washington Post wrote.
Update at 4:10 p.m. — Arlington County has issued a statement about the National Science Foundation move.
Arlington County is disappointed by the General Services Administration’s announcement that it will move the National Science Foundation’s (NSF) National Headquarters out of Arlington, Arlington County Manager Barbara Donnellan said Friday.
“We do not believe such a move would be in the best interests of the NSF, the federal government or the American taxpayer,” Donnellan said. ”Moving the NSF out of Arlington would run counter to the federal government’s investments over the last two decades in Arlington’s ‘scientific center of excellence’ that serves our defense and national security interests so well.”
Given concerns with GSA’s recent leasing decisions, County officials expect there will be vigorous oversight by Congress and others in the coming weeks. There are many unanswered questions about this announced move, and whether it would achieve the savings that GSA projects. “We continue to believe that Arlington County offers the lowest cost and highest value option for the NSF and other government agencies,” Donnellan said.
Arlington, with its unique mix of vibrant urban villages, a highly educated workforce, proximity to the nation’s capital and excellent transportation infrastructure, is a great place for the federal government to do business.
Update at 4:45 p.m. — The City of Alexandria has released a press release on the move. An excerpt:
“The NSF’s decision to locate its headquarters in Alexandria is a tremendous gain for our entire community,” said Mayor William D. Euille. “Having the NSF headquartered in Alexandria will strengthen our growing knowledge-based economy, and directly contribute to our professional workforce. Our high quality of life, access to public transportation, and cultural charm are key reasons why government and private businesses are drawn to Alexandria.”
City planners project that NSF will spur more than 1,800 additional permanent jobs beyond its own workforce of 2,400, and more than 800 temporary jobs to construct the new facility. This is a 4.5 percent increase in Alexandria’s overall workforce. Over the initial 15-year lease, the headquarters is expected to generate more than $83 million each year for Alexandria’s economy. The economic impact includes new salaries and wages for Alexandria residents, and spending by NSF employees and visitors at local businesses.
Given the extraordinary economic benefit of the NSF to Alexandria, and in order to make the Alexandria sites’ bids as competitive as possible, the City proposed the creation of an Eisenhower Avenue Science Redevelopment District. The property used by NSF would be subject to a lower real estate tax rate, which is projected to be a $23 million value to the property owner over the initial 15-year lease. This would still result in approximately $50 million in new tax revenue to the City during that period, even after the tax incentive is factored in. The creation of the new tax district is subject to public hearing and approval by Alexandria City Council.
Spring Forward This Weekend — Daylight Saving Time starts this weekend. Clocks should “spring forward” one hour at 2:00 a.m. on Sunday. [Yahoo]
Condo Residents Still Oppose Homeless Shelter — Arlington County has failed to allay the fears of Woodbury Heights Condominium residents, who still oppose the opening of a new year-round homeless shelter on their block in Courthouse. A vocal group of residents spoke out at an Arlington Planning Commission meeting last night. [Patch]
Fiorina to Participate in AED Event — Former Hewlett-Packard CEO and U.S. Senate candidate Carly Fiorina has just been added to a panel discussion of “empathy in business,” organized by Arlington Economic Development and George Mason University. The event is taking place from 6:30 to 8:00 p.m. on Thursday, March 14 at Artisphere (1101 Wilson Blvd). [Arlington Economic Development]
Flickr pool photo by Sunday Money
(Updated at 12:15 p.m.) BRAC and federal cuts are a drag on Arlington’s real estate market, but Tysons Corner will not be as competitive as some in the county fear, according to Arlington Economic Development (AED).
The county agency gave its annual real estate market review and forecast to a group of developers, property owners and local leaders on Monday. This year’s presentation was titled “Silver Line-ings,” after the new Metro line that is expected to open within a year and bring increased economic development to Tysons.
“I’m not freaked by Tysons Corner,” said AED Director Terry Holzheimer, adopting a bit of youth lingo.
“I don’t think we’re going to see a big negative from Tysons,” he continued. “Arlington will continue to be a better place. Arlington will continue to have better product. Arlington will continue to be highly competitive to Tysons Corner.”
Holzheimer said Tysons will “never catch up” with the kind of walkable, high-density, high-amenity urban corridors Arlington enjoys, and will continue to suffer from traffic problems. Plus, Holzheimer pointed out that commercial property taxes in Tysons are higher than Arlington. He said there’s “not a chance” of Tysons becoming the region’s “new downtown” — as proclaimed by some — in the next 20 years.
Still, Arlington is facing challenges.
Office vacancies are up as the federal government makes cuts, plays hardball with office rental rates, and as BRAC continues to pull military offices out of Arlington. While BRAC was supposed to end last year, Holzheimer said Department of Defense office moves are expected to continue for the next three years, on top of the 17,000 employees that have already moved out of Arlington due to BRAC.
“It’s not even close to being done,” he said. Another 65 office leases in 25 Arlington buildings are expected to be impacted by BRAC in the next few years.
As a result of BRAC and federal cuts — “this malaise we’re in” region-wide — Holzheimer said office vacancy in Arlington has increased to 16.1 percent. Whereas Arlington usually has a lower-than-average vacancy rate for large central business districts (we’re between Boston and Houston in terms of office square footage), he described the county’s current vacancy rate as “middle of the pack” for the first time in a long time.
Interestingly, office rent in Arlington has remained high. The average per-square-foot “asking rate” is $41.13 in Arlington, compared to $18.93 in Dallas, $26.10 in Philadelphia, $31.54 in Chicago and $48.52 in the District of Columbia.
Arlington Economic Development (AED) has announced plans for a new program to help out local entrepreneurs with questions regarding the launch of a new business.
AED is launching an “Entrepreneur in Residence” (EIR) program, which will allow Arlington business owners to get advice, specifically tailored to their startups, from fellow entrepreneurs. Each EIR will serve for six months to one year and will provide regular office hours for counseling other startups in exchange for office space at AED.
That this is a county-sponsored program is unique, AED says. EIR programs are more commonly found in universities and large corporations.
“Having entrepreneurs on hand who’ve faced the same issues and succeeded to guide business leaders of tomorrow is just the type of program that has helped Arlington gain its reputation as the place for startups to succeed,” said Jennifer Ives, Director of Business Investment for Arlington Economic Development.
Will Fuentes and Cary Scott, co-founders of Arlington based tech startup Lemur Retail, will serve as the first EIRs.
“We’ll be able to help with non-traditional questions, like pitching to venture capitalists or how to effectively use social media,” Scott said. “We’ve been there.”
In addition to providing office hours to meet with entrepreneurs, Fuentes and Scott will host quarterly workshops and panel discussions on topics relevant to the entrepreneur community. Possible topics include raising money, pitching to investors, pitching to the media, business strategy and branding, among others.
“We’ve learned. We’ve made the mistakes, and we’re looking now to share that with other exciting startup companies,” said Fuentes.
In addition to AED’s efforts, the new Ballston Business Improvement District is also making a push to attract startup firms and entrepreneurs. Last month the BID announced an entrepreneurship contest that will provide mentorship and other resources to budding business owners. Later, at a launch event announcing the contest, billionaire and BID supporter Led Leonsis said that encouraging entrepreneurship can create jobs and stimulate economic activity in the area.
AED believes the Entrepreneur in Residence program will complement its existing services, such as the BizLaunch small business assistance network. It reports helping as many as 4,000 startups and small businesses each year.
More on the Arlington Goat Prank — The Navy has confirmed that Bill the Goat, the U.S. Naval Academy mascot, was the goat that was found tied up in a median at the intersection of Army Navy Drive and S. Eads Street, near the Pentagon, this past weekend. The goat was “recovered Saturday morning in good condition.” The Army-Navy football game is Dec. 8 and a Navy spokeswoman noted: “Bill the Goat has been a part of our 10-game winning streak against Army, so we are glad to have him back before the big game next week.” [Navy Times]
Arlington GOP Counts Accomplishments — Even though Republican candidates did not win a single race in Arlington, members of the Arlington County Republican Committee are tallying some small victories. “We kept Arlington moving toward more common-sense policies,” said Matt Wavro, this year’s GOP County Board candidate. [Sun Gazette]
‘Shark Tank’ Charity Pitch Event — Twenty entrepreneurs from around Virginia will have a chance to pitch their business startup ideas to panel of business leaders and investors in Arlington this morning. The Shark Tank-like pitch competition will help raise money for charity. The event is taking place at the Ballston offices of Arlington Economic Development, but tickets are no longer available. [Eventbrite]
The center recorded $1.22 million in revenue and $3.55 million in expenses for FY 2012. Net taxpayer support was $2,327,016, $3,842 less than originally budgeted. The result is a marked improvement over previous budgets, which contained unrealistic attendance and revenue expectations; Artisphere’s revenue came in nearly 75 percent below budget for its first fiscal year.
While FY 2012 expenses were under budget — thanks in part to “a reduced amount of programming following the departure of Artisphere’s previous programming director,” according to a just-released year end report — revenue figures present more of a mixed bag.
Admissions and ticket income, educational program income, catering income, and concession income were all well under budget. Were it not for unexpected “event sponsorship” income, largely from the Rosslyn Business Improvement District — a major Artisphere patron which had already contributed $475,000 in the form of a donation — Artisphere would have required more tax support than budgeted.
The year end report attributed the lower admission and ticket income — 18 percent below expectations — to the sudden departure of Artisphere programming director Rosanna Ruscetti in April. (A new programming director was hired in August.) Similarly, educational income was low because “Artisphere’s education director only became full time during the latter half of the year.” Catering and concession income was below expectations, the year end report said, because Artisphere has not yet hired a “resident caterer” to replace the shuttered in-house restaurant and offer full bar service during shows.
“[A] resident caterer has not yet been established and currently, only limited bar operations are being run by Artisphere staff,” the report said. Still, the reported noted that staff-run concessions did generate a profit.
Facility rental income, a key component to the plan for making Artisphere less dependent on taxpayer funds, was $362,767, mostly in line with expectations. Officials expect rental income to increase next year.
“As Artisphere continues to overcome a negative perception for rentals that was established in its first year of operation, income has increased,” the report said. “During the first quarter of FY13, rental income has been extremely strong.”
The report touted a number of successful events and exhibits at Artisphere. Most significant among those was an exhibit of 259 personal photos taken by the late Mexican artists Frida Kahlo. Artisphere was “the first and only venue in the United States” to present the exhibit, and it won critical acclaim and attracted 13,119 visitors.
Meanwhile, Digital Capital Week, a week-long festival of technology, entrepreneurship and social innovation, drew more than 2,000 visitors last fall. DCWEEK will return to Artisphere next month. (Artisphere is one of several venues around the region hosting DCWEEK events.)
In all, officials said Artisphere, which is now under the control of Arlington Economic Development, rose to the challenge of maintaining its budget.
“Artisphere’s new business plan challenged the organization to take a good hard look at its fiscal management and provided the Artisphere with realistic revenue and expense goals,” the year end report said. “The organization worked hard to maximize it income and minimize its expense. The end of the year numbers show that Artisphere was successful in managing its budget. Although Artisphere fell short of its revenue goal for the year, key staff hires, a focus on event rentals and improvements in ticket revenue should position Artisphere well for FY13.”
It’s a debate that’s happening in the District and across the country — how can free-wheeling food trucks peacefully co-exist with brick-and-mortar restaurants? That debate is now coming to Arlington.
The Rosslyn Business Improvement District (BID) is in the process of forming a set of recommendations for the Arlington County Board regarding the regulation of food trucks, according to an internal document obtained by ARLnow.com. The BID, which is funded by the property owners who rent space to the neighborhood’s 59 restaurants, delis and cafes, says in the document that “the number, location and type of operation” of food trucks and carts is “inadequately regulated by Arlington County.”
Even during the “off season” winter months, between 3 and 9 food trucks flock to N. Lynn Street alone to serve hungry Rosslyn lunch-goers, according to the BID. But while residents and workers may appreciate the variety and convenience of food trucks, the restaurants that pay rent in Rosslyn have been complaining.
“Food truck operators… park at the busiest and best locations for retail business without paying rent, investing in the community, or ‘playing by the rules,'” the document suggests. “Existing ‘bricks and mortar retail tenants, who have made large investments, are feeling significant impacts [from food trucks]… Revenue is siphoned from retailers.”
“Business owners who have made investments in Arlington County need to be protected,” the document concludes. “The County needs to create a level playing field for both street level retailers and food carts-food trucks.”
To help do so — and to help cure other ills allegedly brought on by food trucks and carts — the Rosslyn BID has formed a number of preliminary recommendations. Some of the recommendations are new, while some are based on existing regulations. Though the document is described as a “work in progress,” the recommendations so far include:
- “Develop a mechanism to address the number and schedule of food trucks during lunch hours. This would provide a consistent approach for both food truck operators and bricks and mortar retailers.”
- “Dedicate a location for food trucks that is not along the main retail areas.”
- “Limit the number of food trucks-food carts per block to no more than two (2) and ensure adequate sidewalk clearance for safe passage of pedestrians.”
- “Restrict the proximity of food trucks to not less than 65 feet away from the front of restaurants.”
- “Require that food truck/food cart employees must have restroom access within 200 feet of the food truck-food cart.”
- “Enhance inspections and impose serious fines for health/safety violations.”
- “Require food trucks/food carts to provide their own trash cans or take away the garbage that they generate.”
- “Ensure County business registration and tax laws continue to be enforced.”
Rosslyn BID Executive Director Cecilia Cassidy says that while food trucks can “enhance the streetscape,” the well-being of retailers must be considered.
(Updated at 10:20 a.m.) The good news for Artisphere, the county’s struggling cultural center in Rosslyn, is that it just had a certified hit in the form of its month-long Frida Kahlo photo exhibit. The bad news is that it’s still falling short of meeting a number of financial goals laid out in a new business plan last year.
The Frida Kahlo exhibit, held from Feb. 23 to March 25, drew 13,119 visitors to Artisphere, according to a recently-released quarterly report. That’s well over three times the audience of Artisphere’s next most popular exhibit to date, a collection of Mongolian clothing, artifacts and art that drew 3,831 visitors over the course of a month and a half in the spring of 2011.
Though the Kahlo exhibit helped bring in visitors, Artisphere failed to capitalize in terms of catering and concession revenue. Artisphere has yet to find a “resident caterer” to pick up the slack left by the closing of the venue’s in-house bar/restaurant last year. As a result catering and concession income for the first three quarters of the financial year was only $24,170, compared to the prorated business plan goal of $63,188.
Artisphere is also falling short of meeting its goal for facility rental income — a key component of the new business plan. Rental income has brought in $214,752 through the third quarter, compared to the goal of $273,600. In a letter to County Manager Barbara Donnellan, the Arlington Economic Development (AED) officials now in charge of overseeing Artisphere predict that rental income will pick up in the fourth quarter and put Artisphere “only slightly under its projections” for the year.
Another disappointment is income from education programs — $17,540 compared to a Q3 goal of $46,800 — but Artisphere managers expect to make up some ground through revenue from summer camps.
Admission and ticket income, meanwhile, is only just short of its goal. Artisphere has collected $147,156 in visitor income compared to the Q3 goal of $149,987. When it first launched in 2010, however, Artisphere was expected to bring in $789,912 per year in admission and ticket income.
Artisphere has “seen many recent successes in its programming, bringing in very popular performers and events that have attracted significantly higher levels of ticket sales,” according to AED officials. That momentum may be difficult to maintain, though, following the sudden resignation of Artisphere’s Programming Director last month.