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ADVANCING THE ARTS ACROSS MARYLAND

Study Reveals State's A&E Districts Spurring Jobs, New Business

Study Reveals State's A&E Districts Spurring Jobs, New Business

An economic impact study just released by the Maryland State Arts Council (MSAC), an agency of the Maryland Department of Commerce, shows that the State’s Arts and Entertainment (A&E) Districts, which were first approved more than a decade ago, supported more than 1,600 jobs and nearly $50 million in wages on average annually between FY2008 and FY2010. Maryland was the first state in the country to develop an Arts and Entertainment District program on a statewide basis.

February 02, 2012Press Release

An economic impact study released today by the Maryland State Arts Council (MSAC), an agency of the Maryland Department of Commerce, shows that the State’s Arts and Entertainment (A&E) Districts, which were first approved more than a decade ago, supported more than 1,600 jobs and nearly $50 million in wages on average annually between FY 2008 and FY 2010. The program enables local and county governments to apply for the designation, which offers various tax benefits to encourage artists, arts organizations and businesses to locate in a jurisdiction. Maryland was the first state in the country to develop an Arts and Entertainment District program on a statewide basis.
 
“The proven economic impact of Arts & Entertainment Districts exemplifies Maryland’s commitment to strategic, modern investing that spurs the economy and improves our quality of life,” said Maryland Department of Commerce Secretary Christian Johansson. “The study’s findings show that thriving arts communities create an inviting framework for new jobs and businesses, encourage tourism and generate a tremendous impact to our economy.”
 

The study also showed that the districts supported $147.3 million in state gross domestic product (GDP) on average annually between FY 2008 and FY 2010, and a total tax revenue impact of approximately $37.6 million during the same period. The Maryland A&E Districts Program was established in 2001 with six districts beginning operation under a 10-year designation in 2002. Since then, 13 additional Maryland A&E Districts have been added and the Gateway and Silver Spring A&E Districts were recently granted additional 10-year redesignations. 
 

“Arts & Entertainment Districts have a ‘spillover effect’ that creates livelier and more desirable places to live and work which has had a magnetic effect, attracting even businesses that are not necessarily related to the arts,” said Tina Benjamin of the Montgomery County Department of Economic Development.
 

MSAC commissioned The Regional Economic Studies Institute (RESI) of Towson University to produce a report that analyzes data reported by Maryland’s A&E districts over the three year period of FY 2008-FY 2010.  RESI’s detailed report reveals several key findings that affirm the positive economic impact of the program:
 

Jobs:
The A&E districts’ operations supported nearly 4,862 direct, indirect, and induced jobs during the study period. Approximately 864 of these jobs were generated by new businesses formed within A&E districts’ boundaries during the study period. The other 3,998 jobs were generated by visitor spending at events supported by the A&E districts during the study period.
 

Gross Domestic Product (GDP):
Nearly $441.8 million in total state GDP were supported by the A&E districts between FY 2008 and FY 2010. Approximately $73.9 million were generated by new businesses formed within A&E districts’ boundaries during the study period. The other $367.9 million were supported by visitor spending at events supported by the A&E districts during the study period.

Wages:
Nearly $149.4 million in total wages were supported by the A&E districts between FY 2008 and FY 2010. Approximately $25.9 million were generated by new businesses formed within A&E districts’ boundaries during the study period. The other $123.5 million were supported by visitor spending at events supported by the A&E districts during the study period.
 

Tax Revenue

  • New businesses formed within A&E districts’ boundaries during the study period generated more than $6.6 million in tax revenues between 2008 and 2010.
  • Visitor spending at events supported by the A&E districts supported more than $31.0 million in tax revenues between 2008 and 2010.
  • The total tax revenue impact of the A&E districts came to approximately $37.6 million between 2008 and 2010. Approximately $6.6 million were generated by new businesses formed within A&E districts’ boundaries during the study period. The other $31.0 million were supported by visitor spending at events supported by the A&E districts.
  • The average A&E district property would likely generate approximately $126,381 over a ten-year period. Upon approval of a property tax incentive application, the average A&E district property would likely be exempted from approximately $72,944 in property taxes over the same ten-year period.
  • As a result, the total net property tax revenue for the average A&E district property which has been granted a property tax incentive would come to approximately $53,435 for a ten-year exemption period.

Findings of this study will be shared at a national symposium hosted by Maryland’s Station North A&E District in conjunction with the National Main Streets Conference in Baltimore this April. The symposium will bring together policymakers, practitioners, and artists to engage in a dialogue on the economic, social and cultural impact of designated A&E districts. It will also create a platform to reflect on best practices, offer learning opportunities about policy and incentive programs, and discuss critical issues facing A&E districts throughout the U.S.

Visit the MSAC’s publications page to view the full report. To view a map of Maryland’s Arts & Entertainment Districts, click here.

 

Pictured: Gateway Arts District in Prince George's County
 

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About the Maryland State Arts Council
The mission of the Maryland State Arts Council (MSAC), an agency of the Maryland Department of Commerce, Division of Tourism, Film and the Arts, is to encourage and invest in the advancement of the arts for the people of Maryland. The latest economic impact report shows that MSAC grantees’ activities support more than 10,600 jobs and generate $1 billion in local economic activity and $36.5 million in state and local taxes. 

For more information about the Maryland State Arts Council call (410) 767-6555 or TTY 1-800-735-2258, or visit the MSAC web site at www.msac.org.