Alexandria offered a significant amount of tax breaks to woo the National Science Foundation. The new headquarters, to be located near Hoffman Town Center in our neighborhood, is expected to generate $83m/yr in economic activity.
This is HUGE for the Carlyle/Eisenhower East area.
“The NSF’s decision to locate its headquarters in Alexandria is a tremendous gain for our entire community,” said Mayor William D. Euille. “Having the NSF headquartered in Alexandria will strengthen our growing knowledge-based economy, and directly contribute to our professional workforce. Our high quality of life, access to public transportation, and cultural charm are key reasons why government and private businesses are drawn to Alexandria.”
City planners project that NSF will spur more than 1,800 additional permanent jobs beyond its own workforce of 2,400, and more than 800 temporary jobs to construct the new facility. This is a 4.5 percent increase in Alexandria’s overall workforce. Over the initial 15-year lease, the headquarters is expected to generate more than $83 million each year for Alexandria’s economy. The economic impact includes new salaries and wages for Alexandria residents, and spending by NSF employees and visitors at local businesses.
Given the extraordinary economic benefit of the NSF to Alexandria, and in order to make the Alexandria sites’ bids as competitive as possible, the City proposed the creation of an Eisenhower Avenue Science Redevelopment District. The property used by NSF would be subject to a lower real estate tax rate, which is projected to be a $23 million value to the property owner over the initial 15-year lease. This would still result in approximately $50 million in new tax revenue to the City during that period, even after the tax incentive is factored in. The creation of the new tax district is subject to public hearing and approval by Alexandria City Council.