Old Town Business Association To Shut Down After Business Improvement District Fails

ALEXANDRIA, VA — Old Town Business, the association that pushed for a Business Improvement Service District, plans to close as of Dec. 31. The association pointed to the inability to continue running as a volunteer organization without revenue from a business improvement district.

The Old Town Business board of directors unanimously decided to end the organization after more than 40 years of service. The Cookie Crawl in November was Old Town Business’s last organized event.

"Old Town is integral to Alexandria’s success in a myriad of ways. It’s the heart of the city, home to city government and a magnet for 4 million tourists annually," said Amy Rutherford, chair of Old Town Business and owner of Red Barn Mercantile, Penny Post and Pippin Toy Co. "Unfortunately supporting post-pandemic economic development for an entire community using only volunteer help and dues from a few dedicated members is not a viable solution nor an equitable one."

The business association had again sought a business improvement district in 2023 after the city introduced new guidelines for creating a district in 2022. However, Old Town Business did not meet the 60 percent threshold of property owners in support of a district for City Council to consider a vote. Old Town Business said 49 percent of surveyed commercial property owners did not respond, and 51 percent of those who responded did not live in the City of Alexandria. The effort to create a district for Old Town Alexandria also failed in 2017.

A Business Improvement Service District involves a special tax charged to property owners on top of the city's regular real estate tax. The special tax would go toward promoting and improving the business landscape within the district boundaries. The Business Improvement Service District would organize and manage services, activities and events as well as provide amenities beyond what the city provides. Neighboring Arlington County has Business Improvement Districts for National Landing, Ballston and Rosslyn.

Scott Shaw, an Old Town Business board member and partner of Alexandria Restaurant Partners, noted that the association organized services for the neighborhood as a volunteer group.

"A BISD would have created a positive impact on all of Alexandria," said Shaw. "We implemented a parking program that took hundreds of employee’s cars off the streets and put them in garages leaving room for residents and customers. Created more than 20 events that brought customers to Old Town and gave office tenants a reason to return. Kept people safe with a COVID vaccine clinic during the pandemic and were key to the closure of the 100 block of King Street. The list goes on and on."

Old Town Business called on City Council to create a Business Improvement Service District without the 60 percent threshold obstacle.

"As an advocate for small business, a strong partner with the city and city services, and a convener of problem solvers, OTB has been instrumental to our business community’s success," said Charlotte Hall, executive director of Old Town Business. "It’s now up to city leaders to decide how to organize Old Town businesses and develop responses to future economic downturns, crises, and disruptions. OTB provided solutions and funding mechanisms with the proposed Business Improvement Service District, but without dedicated revenue and a full staff, there is nothing more OTB can accomplish."