The stakes are high for businesses along King Street and the greater Old Town Alexandria community as the Old Town Business organization seeks to change to a Business Improvement Service District (OTB-BISD).
Old Town Business has existed for about 40 years, supporting Old Town businesses. Starting with the pandemic years, the organization has grown significantly — by 300% since 2019 — and runs iconic events like the Old Town Cookie Crawl, the Walkable Warehouse Sale and the recent Makers’ Mile.
OTB is asking business owners, primarily along King Street from the Metro station to the Waterfront, to support its switch to a BISD. If it fails, the primarily volunteer-driven Old Town Business will no longer exist. For business owners who depend on foot traffic, the end of the Cookie Crawl and other signature events could hurt.
The BISD is comprised of close to 500 properties that are being asked to pay higher property taxes to support events, activities and services “to make Old Town stronger and better,” said Old Town Business’ Amy Rutherford, who owns Penny Post and Red Barn Mercantile.
The BISD could help with economic growth and stability and build a network of support for Old Town businesses, Rutherford said. In addition to signature events, the BISD would seek “to serve as one voice for businesses in the district [and] to increase overall wellbeing of those who live, work and play in the district.”
In addition to continuing events like the Cookie Crawl and creating new events, those working on BISD planning are also interested in creating an ambassador program to help tourists and locals learn more about the area; creating a parking awareness program to help people find available parking spaces; and working with AEDP and others organizations to help solve the post-pandemic office vacancy problem.
Some properties are excluded from the BISD — including churches and buildings that are 100% residential. Property that is used for commercial and residential purposes will be taxed the OTB-BISD tax.
The cost for property owners affected would be 10 cents of every $100 of assessed valuation, giving the BISD an overall budget of slightly under $1 million. (That’s pretty small compared to other Business Improvement Districts and BISDs in the region.) The tax rate will never increase and city council will agree that it can never force the BISD to increase its rates or take over services currently provided by the city.
The BISD would have a 13 to 15-member board with two non-voting residents and 3 nonvoting positions for Visit Alexandria and AEDP representatives. The BISD want to ensure the board includes representation from the entire length of King Street in Old Town, not just those closest to the Waterfront.
The BISD needs 60% of property owners by parcel for the BISD to move forward, or about 300 signatures of property owners to make it a reality. The petition now has about 150 people who have signed or said they intend to sign the petition. The petition deadline has been extended until May 31 and funding would be available for the BISD in January.
