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County Board Approves Lease for Former Newseum Space - Exploring Cultural Center Option

ARLINGTON, Va. – The Arlington County Board today approved a lease with Monday Properties for the former Newseum space at 1101 Wilson Blvd., a move that allows the County to explore fully the option of converting the space to a Cultural Center.

The proposed Cultural Center potentially offers a unique opportunity to create a major regional attraction that could enhance the renaissance underway in Rosslyn and could serve the cultural needs of the entire Arlington community. The lease puts the former Newseum space under the County’s control for the first time since the Newseum relocated to Washington, D.C. in 2002. In the next few months, the County will decide either to convert the space to a Cultural Center, or give it back to the developer in exchange for approximately $10 million for the value of the public benefits.

The County’s ability to proceed with the center has been complicated by the current economic downturn, County Manager Ron Carlee said. “I will only recommend proceeding with the center once the County’s 2010 budget picture is clear, and only if a viable center can be developed with no new general tax revenues,” he said.

County staff has produced a business plan for the proposed center. The staff plan calls for no new general tax funds to operate the center, and requires a significant reallocation and refocusing of existing County arts programs to help fund ongoing operating costs.

An outside consultant with national expertise in the financial viability of cultural centers is reviewing the business plan. If the plan is found not to be viable, the County has the right to opt out of the lease.

Money to convert, operate center to come from existing funds

The County’s preliminary estimate is that it will cost $4 million to convert the 53,826 square-foot former Newseum space to a Cultural Center. Potential funding sources for renovations include the Rosslyn Fund, made up of developers’ contributions, and previously approved capital funds. A final cost estimate and funding recommendations will be developed over the next few months.

The staff proposal calls for funding all the Cultural Center’s operating expenses through the consolidation and reallocation of existing County resources for arts programs; contributions from the Rosslyn Business District; earned income from tickets; space rentals and commissions against sales, and funds from state and local sources.

The Rosslyn Business District has made an initial $1 million contribution to support the on-going operation of the proposed Cultural Center over a five-year period.

Background

In December 2007, the Board approved a Site Plan Amendment for a proposed office building at 1812 North Moore Street. The County granted Monday Properties greater density in exchange for a package of community benefits. Among those benefits, the developer agreed to lease the former Newseum site at 1101 Wilson Blvd., vacant since 2002, to the County for 15 years.

Monday Properties agreed to provide the space rent-free to the County for the first 10 years of the 15-year-lease.The rent will then gradually rise, until it reaches full fair market rent by year 13 of the lease. The County has the option of extending the lease for five more years at a fair market rate.

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Contact: 
Mary Curtius 703-228-7943(voice), 703-228-4611 (TTY)
Arlington County

Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency’s highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America’s preeminent places to live, visit and do business.