As an Advisory Neighborhood Commissioner in Logan Circle, I enjoyed working with our small, local businesses to help them succeed. Over the years, I have watched them struggle with permit and license paperwork, loss of pedestrian access during periods of construction, and rising property taxes. Throughout the city, our small businesses are facing difficult times and we are losing more and more to chain stores. At least one study has ranked the District, when compared with states, dead last for small business survival.
We are doing something wrong. When I’ve visited San Francisco or growing up in New York, I’m astounded by the amazing diversity of small shops and restaurants, even in the heart of downtown. But in DC, you have to look quite hard to find a place to buy a newspaper in Chinatown or a slice of pizza or lunch to do from a local spot downtown. Earlier this year, I was sad to see Candida’s World of Books in Logan Circle close, a long-term result of the cutting off sidewalk access to her store, soon after it opened, during a prolonged period of surrounding development.
This week, we held an event at Rice Restaurant, just across the street from the former Candida’s, which is now an empty storefront. I had the chance to work with owner Sak Pollert when he opened, helping him navigate the process of applying for a liquor license and sidewalk cafe. Now, his property taxes have skyrocketed. He basically has to sell a month’s worth of Pad Thai to cover the costs.
The DC Council has not taken adequate steps to help. Last year, they passed legislation to provide $11 million for small business relief. That may sound like a lot, but considering there are between 20,000 and 25,000 small businesses in the District, it amounts to about $500 each. That’s an insult. It’s not worth the time and paperwork for a small business, and, of course, it would cost the DC government money to administer the program. Predictably, the election-year “plan” fell apart.
Then, the DC Council tried something else… a reduction in the commercial property tax. Ultimately, they settled on reducing the tax rate for the first $3 million of assessed property value (amounting to $21 million in savings for commercial property owners, and amount that was significantly scaled back as soon as the budget tightened). The problem with that approach… it is billed as helping small businesses, but it actually applies to all owners across the board. In other words, as Council Member Jim Graham recognized, it provides greater relief to the Marriott and large land owners than to small businesses.
As a Council Member, I’ll make sure that small businesses get the attention and tax relief they deserve. That’s why I will introduce the following measures to address these issues before we lose more of our small businesses:
Create an Office of the Small Business Advocate
As I discussed, it is tremedously difficult for small business owners to navigate the government bureaucracy. No organization is currently dedicated to assisting and advocating for small businesses in DC. My proposal is that DC adopt a program that borrows from cities such as Chicago and San Diego, as well as the federal Small Business Administration. In fact, in 2007, San Francisco voters, by referendum, called for such a program. The DC Office of Small Business Advocate would:
Include a staff member for each of eight Wards responsible for building relationships and outreach to each small business in their ward.
Provide ombuds assististance with licenses and permits, zoning, and regulatory applications; assist with impact of street and sidewalk construction.
Disseminate information regarding grants and other financial assistance.
Provide impartial analysis of the impact of legislative and regulatory programs on small businesses. Testify before the DC Council and government agencies to present the affect on small businesses of various proposals.
Prepare annual report on issues facing small businesses in the District, provide recommendations for addressing them, and analyze effectiveness of existing programs.
Examine potential avenues for tax relief and reduction of fees.
Provide Needed Tax Relief
I am committed to enacting a reasonable cap on the percent that property taxes can rise in a single year, similar to the limit placed on residential properties. There is currently no limit to the size of the increase.
I would develop a tax credit targeted very specifically to small, local businesses who have faced steep rises in rent or property taxes in past years.
These proposals are meant only as a beginning. I value your thoughts and suggestions.

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Posted in
Government Responsiveness,
Neighborhoods,
logan circle