Arlington Economic Development Commission 1100 N Glebe Rd, #1500,

Arlington, VA 22201

Business Meeting Minutes Tuesday, November 12, 2019

Member Name Present Absent Bates, Kate X Blenkle, Andy X Caiazzo, Jill X Denning, Tim X DePalma, Lindsey X Drzewiecki, Brian X Dunn, Bill X Jensen, Tom X Kumar, Neal X Merlene, Nicole X Ninassi, Carlo X Patel, Toral X Pedowitz, Scott X Poli, Frank X Saint Juste, Guy X Sampaio, Flavia X Schoenfeld, Mary Margaret X Singh, JJ X Sisk, Avril Ussery X Walsh, William X

1. WELCOME AND CALL TO ORDER The regular meeting of the Arlington Economic Development Commission was called to order by Vice Chair DePalma at 8:05 AM. 2. APPROVAL OF MINUTES Motion made by Commissioner Drzewiecki and seconded by Commissioner Ninassi to approve the minutes of the October 8, 2019 meeting. Motion carried unanimously.

3. CHAIR’S REPORT • Vice Chair DePalma reminded Commission Members that County Board Liaison Libby Garvey will be

attending the December 10th meeting of the EDC.

4. DIRECTOR’S REPORT • Interim Director, Alex Iams reported that it has been one year since Amazon selected Arlington for its

HQ2 location. He updated Commissioners on the activity that has taken place since then including work on the east entrance to Metro in Crystal City and the completion of a funding plan for the pedestrian bridge to DCA.

• Iams also reported that the County Board will hold a public work session on the Columbia Pike Market Study in December.

5. INFORMATION AND DISCUSSION ITEMS

AED Business Recruitment and Retention Strategies Post HQ2 – Marian Marquez and staff members from AED’s Business Investment group (Alex Taylor, Sindy Yeh and Katie McConnell) presented to the group (see Attachment 1).

4. WORKING GROUP UPDATES: • Workforce Task Force: Chair Sisk reported that the Task Force will be presenting its recommendations

to the EDC in December. • 4MRV Arts & Industry District Study – Commission Member Schoenfeld reported that Phase 2 of the

project will start in December.

5. OLD BUSINESS • None.

6. NEW BUSINESS • None.

7. ADJOURNMENT The meeting was adjourned at 9:28 AM.

The next meeting of the Economic Development Commission will be held 7:45 AM, December 10, 2019. A recording of the meeting may be heard by contacting the AED offices.

Business Recruitment & Retention Strategies Post HQ2NOVEMBER 12, 2019

Business Investment Group (BIG) TeamBusiness

Investment Group

Business Recruitment

Business Recruitment

Fast-Growing Startups

Business Intelligence

Real Estate/ Demographics

Marketing

Grants Management/

CRM

BRE & International

BRE Services

BIG 2015: The Way ForwardIn 2015, AED was allocated additional marketing budget and five new BIG positions to implement the “Way Forward”

“Way Forward” goal to attract and retain fast-growing tech companies to diversify Arlington’s economy and cut commercial vacancy in half by 2021

BIG resources were highly focused on marketing and branding Arlington as a tech hub with the exciting result of winning HQ2

Office Vacancy Rate: 2Q 2012 – 3Q 2019

12.7%

21.0%

16.7%

18.6%

16.2%

10%

15%

20%

25%

NSF

Source: CoStar 10/27/19, AED

FY 2015 – FY 2019 Successes

181Companies

13MTotal Square

Feet

79KTotal Jobs

Retention Successes FY 2015 – FY 2019

32Companies

2.5MTotal Square Feet

13KTotal Jobs

Federal Government

71%

Nonprofits9%

Professional Services

9%

Tech 7%

Expansion Successes FY 2015 – FY 2019

64Companies

2.5MTotal Square Feet

20KTotal Jobs

Professional Services

41%Media19%

Tech25%

Nonprofits and Association

6%

New Business (excluding Amazon) FY 2015 – FY 2019

84Companies

2MTotal Square Feet

8KTotal JobsConsumer

Products24%

Nonprofits 19%

Tech35%Professional

Services7%

New Business (including Amazon) FY 2015 – FY 2019

85Companies

8MTotal Square Feet

46KTotal Jobs

Tech83%

Consumer Products

6%

Nonprofits 5%

BIG 2019: The Way Forward Post-HQ2 BIG’s marketing and lead generation efforts over the past four years, culminating in successful HQ2 bid, have clarified Arlington’s most valuable win themes (talent, livability and connectivity)

BIG 2.0: Realign resources to seize upon HQ2 momentum while incorporating lessons learned and addressing new challenges Business Recruitment More targeted and strategic outreach utilizing

external marketing and lead gen firms Business Retention Allocate additional resources to focus on supporting

existing businesses

FY 2020 Marketing & Branding Efforts

Marketing and Communications Strategy and Messaging Plan• Create plan that integrates Arlington’s win themes into AED’s overall marketing efforts to reach

targeted audiences

Design and Branding• Create brand and style guide consistent with strategy and messaging plan and implement new brand

via AED’s various marketing channels (print, digital, social, etc.)

Marketing Support• Provide ongoing support for a variety of marketing/communications efforts, which could include trade

shows/marketing missions, traditional press, digital, social, podcasts, web design, special event planning, etc.

Northern Virginia Economic Development Alliance* (NOVA EDA) announced September 2019

AED will engage an external firm to develop a targeted marketing plan to assist BIG’s business recruitment and retention efforts, leveraging Arlington’s win themes in a post-HQ2 world:

*NOVA EDA website: http://novaeda.org/

FY 2020 BIG Program GoalsTotal SF of New, Retained & Expanded Companies

Total Created and Retained Jobs

Companies Relocating or Expanding

Welcome Letters

Distinct Engagements with Existing Companies

Close Rate of Company Announcements to Active Prospects

800K

3,200

35

40%

1,700

200

Successes CY 2019 to Date

Notable Successes CY 2019 YTD

Company Type

Amify New Business

APT Expansion

block.one New Business

Evolent Health Retention

Nestlé USA Expansion

PBS Retention

PTO Retention

Yext New Business

v740KTotal Square Feet

3,400Total Jobs

17Successful Projects

Business RecruitmentFY20 GOALS: 350,000 SQUARE FEET AND 1,600 JOBS

The Way Forward

Doubling Down in a Post HQ2 Arlington

Marketing, Networking and

Engagement

Enhance Existing

Programming for Lead

Generation

Build Processes for Internal and External Lead

Generation

Square Feet and Jobs

Networking & Engagement

Site Selector & Broker Engagement

National Site Selector Engagement1. Participate in targeted networking & promotional

opportunities through VEDP2. Leverage regional partnerships (NOVA EDA)3. Strategic digital targeting campaigns to target site

selectors

Local Broker Engagement1. Engage with building landlords and broker reps to coordinate on marketing materials and messaging2. Annual presentations to brokerage firms3. Increased staff participation in NAIOP, AREG, CREBA and

other regional/local networking groups

Goal: To cultivate relationships with decision-makers for high-profile, large corporate and regional office users to distribute key messages and win themes and gain awareness and involvement with major corporate relocations and/or expansions.

Internal Lead Generation & Pipeline Enhancement

Targeted ProgrammingGoal: Establish Arlington as a thought leader for innovative programming to generate added exposure and earned media in areas read or consumed by fast-growing companies and site selectors

Lead Generation & Pipeline Enhancement

External Lead Generation: Targeted Call TripsGoal: To engage with companies and key stakeholders in strategic industries or geographic locations by leveraging internal research and external lead generation firm outreach to companies and set appointments in each city and/or conference attended by AED staff.

Collision ConferenceStaff to attend conference

AED to bring 6-8 Arlington companies to showcase

BDM’s to leverage consultants to set 10+ meetings with young, scaling technology

companies showcasing at the show

International Call TripsCall trips to target markets based around

conferences in key sectors, leveraging VEDP and/or lead gen firm:

•IT-SA Security Expo ( Germany)•UK Call Trip

West Coast Engagement:

Corporate HQ & TechSeattle Call Trip

Southern California Call Trip

Small & Intimate Technology Conferences

Inc. 5000 Conference (October, Phoenix)

TechDay New York (April, NYC)

Tech Inclusion (September, San Francisco)

ICF Global Summit (June, NYC)

Business Retention & ExpansionBRE FY20 GOALS: 450,000 SQUARE FEET AND 1,600 JOBS

BRE Successes FY 2015 – FY 2019

96Companies

5MTotal Square Feet

32KTotal Jobs

Business Retention & Expansion Program

Program GoalEngage local businesses through best in class customer service, resources and programming so that companies choose to stay and grow in Arlington, thereby creating additional jobs and lowering the County vacancy rate

Core BRE Tools & Services• Executive Networking Opportunities• Marketing & Promotional Services• Business Intelligence & Research • Liaison Services

Strategic Initiatives FY 2015 - 2019• Introduced annual strategic business outreach plan for expiring leases

and large tenants (> 50,000 square ft)• Expanded and upgraded BRE programs (Arlington Premiere, industry

roundtables, tradeshows, Business Appreciation Month activities)

Business Retention & Expansion Program: Looking Ahead

FY 2020+ Strategy

Increase AED touchpoints with existing businesses and allow for more targeted and thorough programming with additional resource allocation

New Hire focused on local Innovation Economy

• Cultivate pipeline and network of fast-growing companies in Arlington• Develop strategy to support this network through value-add services &

programs

Expand BRE programs and engagements based around priorities and pain points identified by existing businesses• Workforce: Talent attraction & pipeline development• Amazon HQ2 Support

• Innovation campus & university engagement• Increased business activity associated with HQ2 ramp up