City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES F. PARAJON, CITY MANAGER
DOCKET TITLE:
Title
Release of FY26 Contingent Reserves to Fund an Old Town Small Business Marketing Grant.
BODY
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ISSUE: Consideration of Release of FY26 Contingent Reserves to Fund an Old Town Small Business Marketing Grant
RECOMMENDATION: That City Council allocate $25,000 from FY25 Contingent Reserves to fund an Old Town Small Business Marketing Grant through the Alexandria Economic Development Partnership (AEDP).
BACKGROUND: Alexandria has a vibrant and diverse retail boutique community that is predominantly small and locally owned. These businesses are not only employers but also central to Alexandria’s economic vitality.
For the past two decades, retail marketing, activation, and events in Alexandria have primarily been driven by volunteer labor, with funds raised by volunteers from the business community and sponsors. To address these needs, Old Town retailers have previously organized initiatives such as the Old Town Boutique District, Old Town Business, Alexandria Stylebook, Handcrafted Alexandria, and other collaborative efforts. In nearly all cases, the administrative labor and cost of maintaining a 501(c)(6) organization exceeded the budgets of these membership-driven groups and the capacity of their volunteers.
A group of Old Town retailers has united to sustain four to five key events that have historically been critical to local retail businesses. They also plan to provide public relations and social media marketing to promote and elevate Alexandria’s boutique community across Northern Virginia, DC, and Maryland. These efforts aim to boost visibility for local businesses, cultural initiatives, and community events, driving civic engagement, economic growth, and increased retail sales tax revenue.
DISCUSSION: The $25,000 allocation will provide financial support to the volunteer group, enabling them to deliver retail marketing opportunities for Alexandria’s small and independently owned businesses. The group will match the City’s funds with $25,000 of its own, for a total of $50,000. The funds will specifically support:
- Event promotion and advertising for a quarterly shopping-focused event
- Development of a graphics package, including digital and print marketing materials for each quarterly event (maps, posters, digital ads, newsletter content, and other assets)
- Hosting a landing page or website for each event, listing activities and participating businesses
- Public relations and local media outreach by a professional PR and events team, including press coverage in print and digital outlets, live TV appearances, and other earned media
- Social media advertising and content creation, including partnerships with key influencers
These efforts aim to strengthen local businesses by increasing foot traffic, driving sales (and associated tax revenue), and enhancing recognition of Alexandria’s retail community as a key contributor to the City’s visitor experience.
AEDP will use a performance agreement to define and manage the disbursement of City funds to the group of businesses. The agreement will include, but is not limited to, definitions of allowable expenditures, targets, repayment obligations, and reporting requirements.
FISCAL IMPACT: The release of contingency funds would allocate $25,000 to AEDP, which would then grant the funds to the volunteer marketing committee, after the execution of a performance agreement.
STAFF:
Dana Wedeles, Strategic Initiatives Officer
Stephanie Landrum, President & CEO of Alexandria Economic Development Partnership