Today Mayor Muriel Bowser unveiled legislation that will create 1,000 new local jobs and allow DC’s largest technology company, The Advisory Board Company, to retain its headquarters in the District. This legislation delivers on Mayor Bowser’s commitment to create pathways to the middle class for District residents.
The “Local Jobs Tax Incentive Act of 2015” is an innovative piece of legislation designed to produce jobs for District residents and achieve the Mayor’s vision of diversifying the District’s economy. It provides a performance-based property tax abatement to The Advisory Board Company for 10 years of up to $6 million per year. As part of the program, The Advisory Board Company agrees 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 legislation will be introduced next week.
"The District’s record of attracting and retaining companies shows that we mean business,” said Mayor Bowser. "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. This is a big win for our city."
The Advisory Board Company is the leading provider of insight-driven technology, research, and services for organizations in the transforming industries of health care and higher education. The company collaborates with more than 230,000 leaders at 5,200 member organizations to elevate performance with strategic guidance, actionable insights, cloud-based software solutions, and comprehensive implementation and management services.
As part of the legislation requirement, The Advisory Board Company, a 3,400 employee company, has agreed to maintain its offices in the District, and will sign a 16-year lease for a new headquarters building at 655 New York Avenue, NW. Thirty-five percent of tenant improvement construction costs of their new space will go to Certified Business Enterprises.
“We are excited to continue our longstanding relationship with the District as a partner in expanding growth and opportunity. The Advisory Board Company was founded here and DC has been our home for over 35 years,” said Robert Musslewhite, CEO, The Advisory Board Company. “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. We look forward to providing significant new job and training opportunities for DC residents and will continue to support the area through our award-winning community service program.”
With this legislation, the District expects to receive over $300 million in total net tax revenue over 10 years or $5 in tax revenue for every $1 of incentive. Additionally, the Advisory Board Company has signed a strong Community Benefits Agreement which includes partnering with the Department of Employment Services (DOES), DC L.E.A.P. Academy (Learn Earn Advance Prosper) or a DC non-profit to train 250 District residents. They have also agreed to ensure employment for 25 DC L.E.A.P. Academy graduates or DOES clients.
Further, they will partner with DC Public Schools to create an “opt-in” mentorship program to provide year-long individualized support to students in the college admissions process; host Marion S. Barry Summer Youth Employment Program (“S.Y.E.P”) participants each year and provide an annual enrichment session for participants; and provide 25,000 hours per year of volunteer services to DC based non-profits, inclusive of 8,000 hours per year of pro-bono consulting services to DC based non-profits.