For Immediate Release

Friday, June 12, 2009

Arlington County Manager to Recommend Cultural Center

Former Newseum offers “once in a generation opportunity,” Carlee says

>>>Read the Washington Post cover story (Arlington/Alexandria Extra)

ARLINGTON, Va. – Arlington County Manager Ron Carlee will recommend that the County transform the former Newseum into a vibrant Cultural Center in the heart of Rosslyn that will showcase diverse regional and international arts and cultural offerings and attract an estimated 250,000 visitors annually.

Carlee will recommend to the Board at its June 13 meeting that it reallocate $5.6 million in County funds to create the Cultural Center in a space that has mostly stood empty since the Newseum vacated it in 2002.

“We have a once-in-a-generation opportunity here to fulfill this community’s decades-old dream of a cultural center, and a chance to make it happen in a highly cost-effective manner,” Carlee said.

Board schedules public hearing

The Board will hold a public hearing on Carlee’s proposal on July 11, 2009. If the proposal is adopted, the Cultural Center is expected to be completed by the fall of 2010.

Carlee cited two developments that make the Cultural Center an excellent investment for the County. The first is the agreement of the landlord of 1101 Wilson Boulevard to lease the site to the County rent-free for more than 15 years. The second is the Rosslyn business community’s decision to partner with the County to develop and operate the Center. The Rosslyn Business Improvement Corporation will provide $1 million in funds from the Rosslyn special taxing district as seed money for the Center, and $300,000 a year toward on-going operating costs.

Center will aid Rosslyn’s rebirth

“The former Newseum space offers an extremely rare opportunity to meet several County objectives,” Carlee said.

The Center will “serve as a draw to Rosslyn, enliven the street life and complement the next generation of Rosslyn redevelopment,” he said. Carlee noted that the County has searched for 30 years for solutions to Rosslyn and a home for a cultural center, but has always been thwarted by the high level of capital investment needed for the creation of a visible and accessible facility.

Now “for a fraction of what it would have cost the County to construct a building, we will bring something unique and special to Rosslyn --a Center that will offer extraordinarily diverse programming,” Carlee said.

The Center, easily accessible by Metro, will include two performing arts spaces, an exhibition gallery, a ballroom, a restaurant and retail space. In addition, the visual arts exhibition program now at the Ellipse building in Ballston will relocate to the Center.

Open seven days a week, 12 hours a day, the Center will host more than 100 events monthly. Programming will be provided by the County and various arts partners. The “cultural town hall” is expected to have an estimated $10 million in annual economic impact and enhanced street life in Rosslyn.

Supported with reallocation of existing funds

The business plan for the Cultural Center does not require a general fund tax increase for its ongoing operations. Net operating costs of the Center are projected to be $1.33 million for the first full-year of operation, in fiscal year 2011. After that, operating costs are expected to be about $3 million annually.

Those costs will be covered from reallocated existing County arts funds, funding provided by the Rosslyn Business Improvement Corporation, and earned income from facility rentals, ticket sales and commissions and from sponsorships and grants.

The plan and budget were reviewed and refined by Webb Management Services Inc., a leading arts facility development and management consultant.

County to fund build-out by shifting existing funds

The total cost of building-out the Cultural Center is estimated to be $6.7 million, with the County paying $5.6 million and $1.1 million coming from the developer-funded, County- managed Rosslyn Fund.

Carlee proposes using $5.6 million in previously allocated funding for Capital Improvement projects to pay the County’s portion of the build-out. Those Capital Improvement projects, in turn, would be paid for with available, un-programmed proceeds from bonds sales.

The capital projects recommended for bond financing fall within the authorization of the bond referenda questions. To view the staff report, business plan and consultant’s review of the business plan, click here and scroll to Item #45 A-D on the County Board Agenda for the June 13, 2009 meeting.

No currently approved capital projects, including land acquisition projects, would be deferred or eliminated.

Carlee stressed that the Center will position Rosslyn to be highly competitive in attracting new commercial and retail businesses as the nation pulls out of the current recession. “Rosslyn will become a place of considerable note,” he said.

Non-profit organization to operate Center

The County will develop the site and begin operations of the Center. The County and the Rosslyn BID plan to form a non-profit organization within three years to manage the Center and raise funds for the facility.

Background

The County Board approved the lease in November, 2008 for 53,826 square feet of space in the former Newseum, at 1101 Wilson Blvd.  County staff then conducted a comprehensive review of the proposal and hired Webb Management Services, Inc. to review and refine the business plan, including projected operating and capital budgets. Staff then negotiated an amendment to the lease, winning the landlord’s agreement to double the value of the abated rent for use of the space a cultural center. Details of the proposed project were reviewed with the Arts Commission, Fiscal Affairs Advisory Commission, Economic Development Commission sub-committee and other stakeholder groups.

>>>Read more about the project.

Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency's highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America's preeminent places to live, visit and do business.