Department of Parks and Recreation
ARTISPHERE - Economic Impact
ARTISPHERE Makes Good Business Sense for Rosslyn
Arlington Economic Development conducted an economic analysis of the proposed ARTISPHERE to answer the following research questions:
• What would be the localized economic impact of ARTISPHERE, in terms of spending and jobs, within the Rosslyn neighborhood of Arlington?
• What are the selected direct and indirect fiscal impacts of the proposed ARTISPHERE on the Arlington General Fund?
AED determined that the localized impacts of spending and jobs are projected to total $10.3 million annually in current dollars by the third year of operations. The stabilized number of both direct and indirect jobs created by the proposed cultural center is 145.3. In addition, new revenue accruing to Arlington County from the center is projected to be $248,900 annually.
These impacts are substantial in light of the total development costs of approximately $6.7 million (AED report states $6.5 but the number was later updated). The proposed ARTISPHERE will be subsidized by Arlington County, the Rosslyn Business Improvement District, and sponsor and donor contributions. Webb Management's business plan provides these details. Over and above the economic benefits, and not quantified, are the street life resulting from 250,000 annual visitors to Rosslyn and the largely enhanced cultural experiences for Rosslyn, Arlington, the Washington area, and visitor patrons.
In addition to the report conducted by Arlington Economic Development, two additional formulas were used in the Business Plan to determine the economic impact that the center will have on the County. Both formulas were developed by Americans for the Arts, the country's arts advocacy and service organization.
Economic Impact Information National Average Multiplier. The formula uses a national average multiplier to determine the local impact of a specific arts activity. The calculator uses the regional population, in this case 1,000,000+, from which the art audience is drawn, and first year expense and attendance projections. Using this formula the total industry impact of the center is $11,500,872. Local government revenue from the activity is projected at $558,583 and state revenue is projected at $590,882.
Arlington Economic Impact of the Arts 2006 Study. The second chart is based on the 2005 "Arts & Economic Prosperity" study which determined that Arlington audiences' average spending is $18.17 for residents and $39.38 for nonresidents, excluding the cost of tickets. Assuming a 50%-50% audience split for the cultural center, that translates into $18.17 x 150,000 = $2,725,500 (residents) and $39.38 x 150,000 = $5,907,000 (non-residents) for a total of $8,632,500 direct event-related expenditures annually.
Economic Impact of Theaters in Arlington
While Arlington's theaters are a major part of the County’s social fabric a recent study by the Crystal City Crystal City Business Improvement District in conjunction with Arlington Commission for the Arts provides strong and credible data demonstrating the economic benefits of theater facilities to a neighborhood. Two theaters, Arena Stage in Crystal City and Signature Theatre in Shirlington, were evaluated for their impact on the local economy. Examining audience expenditures at surrounding restaurant establishments prior to and after events, the major findings were as follows:
• More than 50 percent of theater patrons visit a restaurant prior to attending the show.
• On performance nights, area restaurants experience increased sales over non-performance nights of between 7% and 20%
• Each performance generates an average of $8,000 in restaurant sales
• Approximately $4 million annually is generated in Arlington restaurant and retail sales showing that support for the arts is an investment in the area's economic well-being
