September 15, 2011

The Honorable Vincent Gray, Mayor The John A. Wilson Building 1350 Pennsylvania Ave, NW Suite 316 Washington, DC 20004 September 15, 2011

RE: Washington, DC Economic Partnership FY 2012 Funding

Dear Mayor Gray: It has come to my attention that the Washington DC Economic Partnership has plans cease its operations on October 1, 2011. My concern is that if this organization ends it programs this month, we will neither have the expertise in house to replace what we have lost, nor will we be able to afford to create this organization again when the time comes. And it will. Like you, I have participated in a number of events and programs over the years with the Economic Partnership. Their annual meeting and development showcase is the largest economic development event in the city, their publications for small business are produced by no one else and their neighborhood information is the most widely distributed in city and is used by every Main Street Organization, CDC and small business group in my Ward and across the city. Of course, what they are most known for is the ICSC in Las Vegas, which this year was among the most successful we have ever had. I have attended this event almost every year for the last decade and I know, as do you that this program distinguishes us in the region and has fueled our success in attracting supermarkets, restaurants and national and international stores. The baseline funding that the partnership needs from the city is $1,200,000. I understand that $500,000 of this amount has been identified within the DMPED budget. This leaves a shortfall of $700,000. The private sector will match this amount with $700,000 for a total budget for FY 2012 of $1,900,000.

Our opportunity to retain our position as a strong market for retailers is at stake. The region has become increasingly competitive and the Economic Partnership has been a stable go to for businesses and the city. For example, without The Partnership who will manage the following efforts on our behalf: The coordination of the ICSC effort not only in Las Vegas but New York and here at the Mid Atlantic Conference which is at the Gaylord in February. Manage the follow-up of new retail and prospects? Who will create new retailer and small business relationships and what happens to the businesses relationships that WDCEP has created for the city over the last 10 years? How do we replace the private money and in-kind support for these programs that WDCEP raises each year which is estimated at $900,000? Who will run their website? Who has the ability to publish their books on small business, neighborhood development and doing business in DC? Certainly no city agency. Why would want to take that cost in house? They produce these materials far more cheaply than we could. That is what they were created to do Over 5000 people attend WDCEP programs and over 20,000 businesses receive the WDCEP books and catalogues each year. Their programs on Channel 16 promote our interest. Whether it is Revenue Bond Program, Small Business Services, The Small Business Awards and Business Plan Competition they are the only programs of their kind in the District and they have faithfully showcased the citys efforts to attract and hold small and new business here. Four publications, Doing Business Guide the Retail Opportunities catalogue, the Annual Development Report and the Neighborhood Sheets are the only available neighborhood specific data for Main Streets and Neighborhood Business organizations will cease publication immediately. They should be given more credit for the work they did to attract Walgreens, Safeway Harris Teeter, North Face, Carmines, Godiva, CB2, Marshalls, Sears, Best Buy, ACE, Trader Joes among others. The city used to fund them at the $2,000,000 level as recently as 2007. We are seeing the benefits of that investment now. I want to urge you to reexamine our support of this organization and identify the $1,200,000 they are seeking for 2012. Further, we should begin the work now to identify a more sustainable funding strategy for the Economic Partnership and business attraction and retention for 2013 and beyond. Sincerely,

Jack Evans Councilmember, Ward 2 Chair, Committee on Finance & Revenue

Cc:

The Honorable Kwame Brown, Chairman Victor Hoskins, Deputy Mayor Dr. Natwar Gandhi, CFO