DC Considers Economic Development Bill to Retain The Advisory Board Co HQ

The D.C. Council is set to take up new legislation next week that will enable Washington, DC to retain the headquarters of The Advisory Board Company. The District will also benefit from the company’s growth plans, which includes the creation of 1,000 new jobs.

Rendering of 655 New York Avenue development in DC

655 New York Avenue development in DC (rendering – douglasdevelopment.com)

The Washington DC economic development bill, called the “Local Jobs Tax Incentive Act of 2015,” provides a performance-based property tax abatement of up to $6 million per year to The Advisory Board Company for 10 years, adding up to tax incentives of $60 million.

For its part, The Advisory Board Company will agree to remain in the District and hire 1,000 net new DC residents between the time of lease execution and the end of the incentive period in 2030.

The Advisory Board Company (NASDAQ: ABCO) is a research, technology, and consulting firm with 3,400 employees that collaborates with more than 230,000 leaders at 5,200 health care and education member organizations, and is DC’s largest technology company.

The company will be relocating its headquarters to the 655 New York Avenue development. This is a 756,000-square-foot project by Douglas Development which combines existing historic buildings with a sleek new modern mid-rise glass building to offer office and retail space. In fact, they had to move an entire historic building as is in order to preserve it within the new design for the 655 New York Avenue project.

The triangle-shaped block occupies prime real estate near Mt. Vernon Square, adjacent to the Washington Convention Center. The Advisory Board Company is signing a 16-year lease and will be the project’s anchor tenant.

In a release unveiling the economic development legislation to support the company‚Äôs headquarters relocation, Mayor Muriel Bowser said that “Keeping an influential company like The Advisory Board Company in Washington, DC is a testament to the attractiveness of our market, our competitive strength, and our laser focus to hire District residents and keep jobs right here in DC.”

Even after factoring in the $60 million in tax incentives, the District expects to receive over $300 million in total net tax revenue over 10 years ($5 in tax revenue for every $1 of incentive). DC secured this project over competition from several other Washington DC metropolitan area governments.

The Advisory Board Company CEO Robert Musslewhite said in the release that “We are grateful for the Mayor’s efforts to make DC a compelling place for technology companies to grow and thrive, and for her work to ensure that we remain a part of this community.”

Apart from the economic impact of DC’s retention of the headquarters and the 1,000 new jobs being created, the project also offers other economic and community development benefits for the District.

Visits by the company’s members bring a large amount of visitor revenue for hotels, restaurants and other tourism businesses in the District. Furthermore, thirty-five percent of tenant improvement construction costs of the new space will go to Certified Business Enterprises.

Advisory Board Company has also signed a strong Community Benefits Agreement under which they will provide training for 250 District residents, and ensure employment for 25 DC Department of Employment Services clients or L.E.A.P. Academy (Learn Earn Advance Prosper) graduates.

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