VA Senate Supports Legislation Enabling Creation of Arts and Cultural Districts
News from Virginians for the Arts:
VFTA Legislative Counsel Alan Albert reports that HB 1735, which provides authority for any county, city or town to create an arts and cultural district within its boundaries, has passed the Senate on a vote of 38-1 and will now head to the Governor for signature.
What is the Significance for the Arts in Virginia?
HB1735, initially sponsored by Chief Patron Delegate Shannon Valentine, proposed that all Virginia localities have the authority to create arts and cultural districts without individual authorization from the Virginia General Assembly.
The localities will have the authority to grant tax incentives and provide certain regulatory flexibility in the arts and cultural districts. The tax incentives include, but are not limited to, reduction of permit fees, reduction of user fees, and reduction of any type of gross receipts tax. The regulatory flexibility includes, but is not limited to, special zoning, permit process reform, and exemption from ordinances.
Arts and cultural districts are an increasingly popular economic development tool for local governments across the country. When theatres, performing arts centers, museums, art galleries, and artist studios are encouraged to locate in the same neighborhood, the neighborhood becomes a magnet for the general public.
Restaurants, gift shops, and art supply stores soon follow. Commercial enterprises, such as graphic design studios, advertising agencies, and architectural firms are attracted to such areas. When localities can achieve a critical mass of arts-related activities in a single area, these neighborhoods are appealing to what is often called the creative class of workers, many of whom prefer to live in and at least in close proximity to the arts and cultural districts.
Nine localities in Virginia have individually received authority from the Virginia General Assembly to create arts and cultural districts. These localities are the Cities of Alexandria, Charlottesville, Falls Church, Harrisonburg, Manassas, Petersburg, and Winchester and the Towns of Blacksburg and Chincoteague. These districts are in varying stages of development. There are also several communities in Virginia, including Lynchburg and Norfolk, that have not requested General Assembly authorization but that are actively promoting their arts and cultural districts without offering tax incentives or regulatory flexibility.
