2021 City of Williamsburg Economic Development Department Impact Report

ANNUAL ECONOMIC DEVELOPMENT

IMPACT REPORT 2021

Revolutionary Ideas. Historic Opportunities.

LEADERSHIP Williamsburg City Council Members:

TABLE OF CONTENTS SUPPORT EXISTING BUSINESSES..................................................4 CULTIVATE NEW JOBS AND INVESTMENTS...................................6 GUIDE DEVELOPMENT OPPORTUNITIES..............................8 FOSTER ENTREPRENEURIAL & CREATIVE GROWTH...............10 LEVERAGE REGIONAL PARTNERS................................................. 14

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CITY OF WILLIAMSBURG, VA

Douglas G. “Doug” Pons, Mayor W. Pat Dent, Vice Mayor Edward F. "Ted" Maslin Barbara L. Ramsey Caleb T. Rogers

CITY OF WILLIAMSBURG ECONOMIC DEVELOPMENT DEPARTMENT yeswilliamsburg.com 401 Lafayette Street Williamsburg, VA 23185 757.220.6104

City of Williamsburg Economic Development Authority (EDA) Members: Rick Overy, Chair Adria Vanhoozier, Vice Chair John Cale Andrew Crawford Harold Philipsen Adam Steely Robert "Robby" Willey EDA Attorney Joseph F. Phillips, Jr., Of Counsel Secretary to the EDA Attorney, Marie Caulford The Williamsburg Economic Development Authority (EDA) was chartered by Williamsburg City Council in 1975. The EDA's seven directors are appointed by City Council. It is a political subdivision, independent of the City. The EDA works to assist existing businesses, attract new businesses, and market the City as a premier business location. The EDA strives to be aware of the needs and concerns of City businesses and to identify, encourage and assist in the implementation of programs and activities that will contribute to the City's economy.

MESSAGE FROM Interim Director Of Economic Development, Yuri Adams

A

s I look back on 2021, I feel honored to have been part of the City of Williamsburg’s team as we focused on embracing change, growing partnerships, and driving business. Internally, we transitioned to a new staff structure mid-year as our longtime Director of Economic Development Michele DeWitt became the assistant city manager. We are grateful for her dedication to building this department, developing our team, and assisting countless businesses. Her passion for Williamsburg and her economic development expertise continues to benefit the community in her new role.

Yuri Adams INTERIM DIRECTOR OF ECONOMIC DEVELOPMENT yadams@williamsburgva.gov

We also found ourselves growing or building critical partnerships. As businesses were reeling from the effects of COVID-19 in one way or another, we found opportunities to partner with our neighboring localities to administer grant relief; to forge new collaborations with groups like the NAACP; and to realize new City investments from entrepreneurial efforts like Start Peninsula and LaunchPad.

Joanna Skrabala TOURISM DEVELOPMENT SPECIALIST jskrabala@williamsburgva.gov

All the while, we maintained our focus on driving business. With the support of appointed and elected City leaders, our team has been guiding, connecting, leading, and assisting new and existing businesses throughout the City. We serve our role as the community’s one-stop business concierge with pride, and we appreciate the opportunity to share this snapshot of collaborative results with you.

Richmond 40 miles

Winchester

60

Washington, D.C.

Charlottesville Richmond Norfolk

Roanoke

199

64

Williamsburg “….a bustling community with a big roster of things to do and places to explore. Don't miss sandwiches at the Cheese Shop; the boutiques and taprooms at Merchants Square; and brews from Precarious Beer Project, Amber Ox Public House, and the Virginia Beer Co.”

— SOUTHERN LIVING EDITORS, MARCH 2022

17 60

Norfolk 30 miles

2021 ANNUAL ECONOMIC DEVELOPMENT IMPACT REPORT

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SUPPORT EXISTING BUSINESSES

Inaugural NAACP event held on Nov. 19, 2021

Greater Williamsburg Chamber of Commerce

“By celebrating minority business owners, we are also exposing leadership from across the region to the diversity of our business communities.”

— B A RB A RA RA MSEY Williamsburg City Council

New Business Community Collaboration Series Supports Minority Business Engagement The Business Community Collaboration Series is a partnership among the York-James CityWilliamsburg NAACP, City of Williamsburg, York County, James City County, and the Greater Williamsburg Chamber of Commerce to recognize, honor, and support minority-owned businesses in the Greater Williamsburg area. Senior staff, City Council members, Board of Supervisor representatives and members of the public gather monthly to recognize select businesses. Each honoree is presented with a certificate from the NAACP, the Chamber, and the appropriate locality and celebrated with a formal ribbon-cutting ceremony. This opportunity allows leaders in our community to connect with our minority business owners and provide them readily available resources for growth.

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CITY OF WILLIAMSBURG, VA

Gholson & Associates, LLC DBA The MAXIMUM Building at Work Nimbly Lawrence and Ti’Juana Gholson

Why did you choose to locate your new business in the City of Williamsburg?

We feel that Williamsburg has a lot of potential for business development, growth and innovation.

We want to be a part of a city and an environment open to growth.

How is the support from the City’s economic development office making a difference in your operation?

We are indebted to the City's EDA and, in particular, Yuri Adams for always having an opendoor policy and allowing for relationship-building with us as a small business.

YEARS OF OPERATION: 2000 (22 years) — The Williamsburg location opened in 2021.

TYPE OF BUSINESS: The MAXIMUM Building at Work Nimbly, located in the City of Williamsburg, is a co-work office space company and sister company to The MAXIMUM Building in James City County.

We provide office space to the small-business owner who wishes to have an office presence without heavy overhead costs. This presence allows for professionalism, community networking and relationship-building with other small businesses.

It is because of Yuri that we knew of the opportunity to purchase Work Nimbly (the previous name of the business) and were able to bring that business under our umbrella of businesses.

Other services offered are coaching and mentoring, seminars and training, and networking meet-ups. The co-worker/member has the option of using space in both buildings.

It is imperative that small businesses know and have a relationship with their local economic development offices, and Williamsburg's office has been most helpful and open to supporting its small businesses.

FIND US ONLINE: worknimbly.com maximizedlifecoaching.com/coaching coworkwilliamsburg worknimbly

What do you love about working and living in the greater Williamsburg area?

The rich history and the small-town atmosphere.

2021 ANNUAL ECONOMIC DEVELOPMENT IMPACT REPORT

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CULTIVATE NEW JOBS AND INVESTMENTS

2021 Discretionary Incentives Awarded

Total Taxes Collected: $1,219,656

Incentives Awarded to Businesses: $423,495

— R ICK OV ERY Economic Development Authority Chairman

CASE STUDY

*Represents net new direct tax revenue to the City.

Economic impact is larger.

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CITY OF WILLIAMSBURG, VA

$796,160*

“These incentives are a win-win because they draw new businesses and new revenue to the city, and the businesses earn back some of the taxes paid based on their own success. It’s important to remember that the City retains a percentage of the taxes, which is new revenue the City would not have collected without these restaurants opening here.”

The City of Williamsburg EDA voted unanimously at its meeting on March 10, 2021, to award incentive grants to two new restaurants. The awarded incentives grant a percentage of the taxes the restaurants pay to the City over a fiveyear period, which is a revenue sharing agreement that is performance-based.

Another Broken Egg Cafe expands to Williamsburg, Virginia with the opening of its first location in the state.

Net New Taxes to City:

The revenue sharing incentive for Another Broken Egg Cafe supported exterior improvements to modernize the building at 1006 Richmond Road.

The company has more than 70 cafes located in 13 states and is continuing to grow in new and existing markets across the United States.

The Williamsburg location will headquarter all Virginia back-office staff and be used as the South Carolina, North Carolina, Virginia, Maryland, and Delaware training facility for cafe management.

The EDA will award revenue grants over time, after the business pays local sales and meals tax.

Midtown Row GRAND OPENING

On Sept. 24, 2021, Midtown Row hosted its grand opening. This $120 million mixed-use redevelopment project is on 25 acres with 237,520 square feet of commercial product and 240 fully leased residential units.

(left to right) – EDA Chair Rick Overy, Commissioner of the Revenue Lara Overy, Interim Economic Development Director Yuri Adams, City Engineer Aaron Small, City Manager Andrew O. Trivette, Principal Planner Erin Burke, Assistant City Manager Michele Mixner DeWitt

» midtownrowwilliamsburg.com

(left to right) – Broad Street CEO Mike Jacoby, City Council Member Barbara Ramsey, Mayor Douglas Pons, City Manager Andrew O. Trivette

Juicing Life Bar, which will be opening a storefront at Midtown in 2022, set up a tasting table at the event.

Brass Wind (band) playing at the opening

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GUIDE DEVELOPMENT OPPORTUNITIES To assist businesses during the pandemic, the City of Williamsburg, in partnership with York County and the City of Poquoson, applied for and received funding from the Virginia Department of Housing and Community Development (DHCD) under the Community Development Block Grant (CDBG) program.

Businesses open prior to the pandemic that employed fewer than 20 fulltime employees at any point during the pandemic, were eligible for up to six months of business rent or mortgage expenses at a max award of $15,000. Of the awards made to City of Williamsburg businesses in 2021,

approximately 40.5% went to woman-owned businesses and approximately 26% of awards went to minority-owned businesses.

WE ARE YOUR

BUSINESS CONCIERGE

The City of Williamsburg offers targeted incentives to existing and new businesses located in the City. Additionally, the Commonwealth of Virginia provides business incentives, and parts of the City are located within federal government incentive areas.

Arts District Tax incentives and fee waivers over a five-year period for qualified arts businesses in properties within the Williamsburg Arts District.

Bicycle Rack Grant Program

Commonwealth Incentives The Commonwealth of Virginia provides an array of incentive and grant programs through multiple economic development partners to reduce the costs of opening or expanding a business facility, developing a talented workforce, and building critical infrastructure.

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Business Appreciation Award

Made possible by an original grant from the Williamsburg Health Foundation in honor of then Planning Director Reed Nester, this grant allows businesses to install bicycle racks for customers with a significant offset in costs - up to three bike racks at $25/rack.

CITY OF WILLIAMSBURG, VA

Annually, the EDA recognizes a City business for its work and dedication to make the City of Williamsburg a better place to live, work, and visit.

eCommerce Grant Small businesses in the City eligible for this grant receive support to directly enhance website traffic and drive online commerce with features like updated web design and development, online shopping systems, and search engine optimization.

Google Street View Virtual Tour for Business Grant This grant is an opportunity for small businesses to secure professional photography to contribute to a 360° interior tour showcase of their business on Google.

Business Roundtables On the second Tuesday of each month, the EDA hosts a lunch roundtable where City businesses discuss varying topics, concerns, and ideas with local, regional, and state experts.

Greater Williamsburg Partnership The City of Williamsburg is an active participant in the Greater Williamsburg Partnership, a dynamic regional economic development organization that facilitates new business investment and markets the communities of Williamsburg, James City County, and York County.

The CDBG Small Business Grant was one of the many ways that the City went above and beyond to respond and support our business community struggling with the impacts of COVID-19.

At one point last year, we were told that our three localities had assisted more than half of the total number of businesses assisted by the program in the entire state — something we’re very proud of!

This regional program provided

more than

$ff. MILLION to

ff BUSINESSES

in our three localities.

$1.5 MILLION in relief funds to

143 BUSINESSES

Historically Underutilized Business (HUB) Zone The HUB Zone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in these areas, one of which is designated within the City. The program’s goal is to award at least 3% of federal contract dollars to HUBZonecertified companies.

New Market Tax Credits Businesses, including nonprofits, located in a qualifying census tract in the City may qualify for the federal New Market Tax Credit (NMTC) Program, which primarily provides lower interest rate loans.

Tax-Exempt Bonds The Williamsburg Economic Development Authority (EDA) is authorized to issue taxexempt industrial revenue bonds to fund certain facilityrelated improvements for nonprofit, 501(c) 3 tax-exempt organizations, accredited educational institutions, museums, and medical facilities.

— YUR I A DA M S Interim Director of Economic Development

in the City of Williamsburg.

Launchpad: Greater Williamsburg Business Incubator

Major Business Facility Job Tax Credit

Launchpad is an entrepreneurial ecosystem partnership among the City of Williamsburg, James City County, York County, and William & Mary to help startup businesses in our region grow through customer-centric programming, activities, and coaching.

Qualifying businesses are eligible for this state-administered tax credit if they create at least 25 new full-time jobs in the City in a non-retail trade industry. The benefit is a $1,000 corporate income tax credit for each new full-time job created over the 25-job threshold.

Revenue Sharing Incentives

Small Business Investment Grant

Gap financing, loans, and grants equal up to 60 months of associated tax impact are offered in flexible, performancebased structures to businesses within the City’s target industries.

Existing businesses and commercial property owners may access this grant to invest in their properties through exterior façade improvements, landscape enhancements, and other capital improvements.

Tourism Financing Opportunities The Virginia Tourism Corporation administers two notable tourism programs focused on gap financing for tourism development projects – the Tourism Development Financing Program and the Virginia Tourism Growth Fund – focused on offsetting debt service and project financing at certain levels.

Small Business Jobs Grant Fund For qualifying businesses creating at least five new jobs through expansion or start-up, grants are available ranging from $500 to $2,000 per job if certain criteria are met.

Manufacturers, distributors, inbound call centers, certain IT companies, manufacturers, and headquarters relocating to Virginia are all eligible.

Williamsburg Tourism Zone For qualifying new or expanding tourism-based businesses within the Northeast Triangle area of the City, certain taxes and fees may be refunded or waived for a period of up to five years.

Minimum capital investments include $50,000 for existing tourism businesses and $250,000 for new tourism businesses.

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FOSTER ENTREPRENEURIAL & CREATIVE GROWTH

Start Peninsula helps entrepreneurs grow their businesses through mentorship, networking and funding opportunities. The pitch competition, hosted by the city of Newport News, in partnership with the cities of Hampton, Williamsburg, Poquoson, and James City and York counties, has been held annually since 2012.

P I TC H C O M P E T I T I O N

START PENINSULA

PRIZE PACKAGE:

$5K $5,000 in seed funding

1-year spot at Growth University

6-month membership to Launchpad

1-year memberships to the Virginia Peninsula Chamber of Commerce, the Greater Williamsburg Chamber of Commerce, the York County Chamber of Commerce, and the Retail Alliance

20 hours of consulting from the Hampton Roads Small Business Development Center

10 hours of project management assistance and consulting with the Crim Dell Small Business Network

"Economic development in our community goes beyond attracting something new — it often means growing and celebrating what we already have."

— M I C H E L E M I X N E R D E W I T T, Assistant City Manager 10

CITY OF WILLIAMSBURG, VA

Bonilla Pet Studio one of three winners in the 2021 Start Peninsula competition

Erin and Oswaldo Bonilla

Bonilla Pet Studio became a Launchpad member in 2021. They have a pet photography studio in Norfolk and wanted to open a second location in Williamsburg. They became a Launchpad member to benefit from mentorship opportunities and to get assistance with the process of scaling up and growing. They heard about Start Peninsula through Launchpad, competed in the September Start Peninsula Micro Pitch, earned a spot as a finalist, and then won the Championship Pitch Event in November 2021.

They celebrated the grand opening of their second location on Dec. 4, 2021.

What is attractive about current entrepreneurial growth in the City?

We were determined to open a studio because the demand was high. We talked to a lot of businesses, and they were all happy to be in the City and had been open for many years.

What tools are available to you within the City that you found unique or compelling for your business vision?

We have participated in many educational opportunities... also in Start Peninsula, initially in the micro pitch competition, and then as the first place winner in 2021. Erin was also a member of BNI and participated in William & Mary's LaunchPad program.

She is now participating and volunteering her time with W&M's MBA students on one of their research programs.

BUSINESS FOCUS: Families with pets. We capture the bond between families and their love for their fur babies.

FIND US ONLINE: bonillapetstudio.com EBonillaPhoto

What do you love about working and living in the greater Williamsburg area?

We absolutely love the City and love to call Williamsburg our new home. We feel that everyone was happy to have us, and our business is doing well due to the support of the local community and, of course, from our beloved customers.

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FOSTER ENTREPRENEURIAL & CREATIVE GROWTH

Collaborative, Innovative Williamsburg Public Art Council Formed In February 2021, Williamsburg City Council adopted an ordinance and resolution to create the Williamsburg Public Art Council (WPAC) with a purpose to:

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Celebrate the City’s past, present, and future with public art; Enhance the City’s identity and economic vitality by encouraging people to spend more time in the City engaged with public art; and Highlight and enhance the beauty and unique character of the City.

In 2021, the WPAC took inventory of existing public art in the City; developed an application process for public art on private property; created a list of potential public art locations of City property; and conducted a public input survey. The WPAC is currently overseeing the approval and installation of several new murals in Midtown Row.

Fraga Magna Rotabila (latin for Large Strawberry with Wheels) by Williamsburg artist Merrilee Cleveland was approved for placement in Bicentennial Park by the WPAC in August 2021. The sculpture was donated to the City by the Triangle Arts & Culture League and stands as a symbol of love, nurturing, and protection.

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CITY OF WILLIAMSBURG, VA

Global Film Festival at William & Mary

"The vibrant culture of our community is one of the many drivers supporting our economic development efforts. Public art has been a City Council priority for many years, and I am personally excited to see it now celebrated across the entire city footprint."

In 2021, the Williamsburg Area Arts Commission distributed 25 grants totaling $157,000 to the following arts organizations for their continued events and programming efforts: Accordion Renaissance

— BAR B A RA RA M S E Y Williamsburg City Council

An Occasion for the Arts Chesapeake Bay Wind Ensemble Flute Frenzy Global Film Festival at William & Mary Institute for Dance Jamestown-Yorktown Foundation Open Door Concert Series Opera in Williamsburg Panglossian Productions StageLights Tidewater Classical Guitar Virginia Arts Festival Virginia Opera Virginia Regional Ballet Virginia Stage Company

WPAC is made up of members of City

Virginia Symphony Orchestra

Council, the Architectural Review

WHRO

Board, Planning Commission, Economic Development Authority, Tourism Development Grant Review

Williamsburg Choral Guild Williamsburg Contemporary Art Center Williamsburg Music Club

Committee, and citizens. WPAC will highlight existing cultural assets and bring new art to the forefront to draw people living, working, and visiting in the community together.

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LEVERAGE REGIONAL PARTNERS

Tourism Development Investments

The City's Tourism Development Fund (TDF) has been investing in the community since 2019 to increase patronage to restaurants, hotels, and events in the City of Williamsburg through financial assistance and reinvestments in tourism products, place-making projects, special events, and public-private partnerships. The following community partner organizations received allocations this year from the City's Tourism Development Fund.

Ampersand International Arts Festival*

$25,000

An Occasion for the Arts

$25,000

Colonial Williamsburg Foundation Culturefix Williamsburg Hotel Motel Association Williamsburg Live (Virginia Arts Festival) *Formerly the William & Mary Global Film Festival

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CITY OF WILLIAMSBURG, VA

$1,300,000 $340,000 $11,000 $125,000

The Edge District The Edge District — a foodie destination at the convergence of James City County, York County, and the City of Williamsburg — was formally launched in July 2021 with an event called “Running with Scissors”. These back-to-back ribbon cuttings celebrated all participating businesses in the district spanning all three localities in Greater Williamsburg.

PHOTOS BY

CONSOCIAT

E MEDIA

Eastern Virginia Regional Industrial Facility Authority (EVRIFA) The Eastern Virginia Regional Industrial Facility Authority (EVRIFA) successfully acquired a 432-acre former Commonwealth of Virginia Emergency Fuel Farm in December 2021. Simultaneous with the acquisition, the authority leased 250 acres of the property to CI Renewables for a 20-megawatt facility. EVRIFA plans to develop the remaining acreage as a light industrial park. Six of EVRIFA’s 10 member jurisdictions — York, Isle of Wight, Poquoson, Williamsburg, Hampton and Newport News — funded the costs associated with this initiative and have agreed to revenue sharing on the entire property. EVRIFA currently includes James City County, Williamsburg, Gloucester County, York County, Newport News, Hampton, Poquoson, Franklin, Chesapeake, and Isle of Wight County.

Williamsburg Downtown Williamsburg Downtown is a new nonprofit organization created in partnership with the City of Williamsburg in 2021 to enhance the awareness and economic vitality of the downtown business district. This new effort is one of the resulting recommendations of a Downtown Vibrancy Study from 2018. To launch their inaugural fundraising event, Photos with Santa, Williamsburg Downtown was awarded a $30,000 grant from the City’s Tourism Promotion Contingency Fund.

In 2021, the City of Williamsburg rejoined the Hampton Roads Alliance, the leading regional economic development organization for the Hampton Roads region of Virginia. Alongside 13 locality partners, Williamsburg will benefit from this publicprivate partnership’s focus on attracting, growing, and retaining companies and talent across the region.

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THE SOUTH'S BEST For the second time in three years, Williamsburg was voted one of “The South’s Best Small Towns” by Southern Living magazine.

“Colonial Williamsburg draws in over 6 million visitors a year spending more than $1.3 billion.

The history of Williamsburg is leveraged by restaurants, retail shops, and tourism services.

We invite you to come and be a part of the history and magic that is Colonial Williamsburg.”

— S HAU N CO L E M A N Executive Director of Sales & Marketing for the Colonial Williamsburg Foundation Hospitality Division

» Visit yeswilliamsburg.com to learn more and contact us.

CITY OF WILLIAMSBURG ECONOMIC DEVELOPMENT DEPARTMENT 401 Lafayette Street, Williamsburg, VA 23185 757.220.6104