Alexandria's Alfresco Meal Ticket
Revenue-Hungry City Restores Sidewalk Dining

By Kirstin Downey
Washington Post Staff Writer
Sunday, April 6, 2008; PW15

When the weather turns warm, urban planner Jeanette Studley, 29, and her office mates in Old Town love to head outside to dine.

"We do that for lunch as much as we can, to get out of the office and breathe some air," Studley said recently. Eating out "is so much more enjoyable," said Studley, who works for EDAW, an architectural and environmental consulting firm.

So Studley wondered late last year why tables and chairs at her favorite outdoor restaurants were tucked away inside and outdoor dining was discontinued, even on unseasonably warm days.

But now the curbside tables and chairs are back year-round on King Street.

The Alexandria City Council had decided in June to ban outdoor dining from Nov. 16 to March 31 because some restaurants had left their dining sets outside even in wintry conditions, making it hard to plow the streets. Some residents complained that the chairs and tables were obstructing the sidewalks, which are publicly owned, for too many months each year.

Last month, however, the council reversed itself and began permitting restaurants to offer outdoor dining year-round to bring them more business on those fall and spring days that feel more like summer. The council also decided to spend some extra money to brighten the urban landscape by letting the holiday lights strung along trees on King Street twinkle all year long.

City officials took these actions partly in response to findings by Alexandria's Economic Sustainability Work Group, which has been looking for ways to boost the city's revenue in the face of sagging real estate values and a declining economy. The city's meal tax receipts have risen to an estimated $10.7 million this fiscal year from $10.4 million the previous year, partly because of the popularity of outdoor dining, which officials say has drawn customers to the city. The fiscal year ends June 30.

The city's restaurant tax revenue "is one area that is doing better than we anticipated," said Kendel Taylor, a senior budget analyst with the city.

One advocate of year-round outdoor dining is Gregory Leisch, a member of the Economic Sustainability Work Group and chief executive of Delta Associates, an Alexandria-based real estate information firm. Leisch said that to prepare itself for uncertain economic times, the city must do all it can to accentuate its best features.

"You can't have a world-class waterfront without outdoor dining," Leisch said. "It only makes sense to have it year-round. We have 70-degree days in December. We have a climate that is good for it."

Alexandria isn't alone in benefiting from healthy meal tax revenue. Arlington County received $28.7 million in meal tax revenue in 2007, compared with about $22 million one year earlier. County officials expect this year's revenue to reach the 2007 level.

This year's revenue is "where we anticipated it would be," said Mark Schwartz, Arlington's director of management and finance. "We've had fairly healthy growth over three years."

In Alexandria's case, restaurateurs convinced city officials that their eateries would be more successful if they were allowed to serve outdoors all year, except when the weather was not suitable.

When the city banned serving outdoors for four months, the Mai Thai Restaurant at 6 King St. near the waterfront lost revenue, said owner Woodthichai Tongrugs.

"People like to sit outside when the weather is good," Tongrugs said. "The more we serve, the more benefit the city gets in tax revenue. It's good for the city."

On a warm evening late last month, about half the outdoor tables were occupied at Mai Thai, as couples and small groups drank wine or enjoyed appetizers as the sun set. The regular dinner hour hadn't even started.

Alexandria Vice Mayor Redella S. "Del" Pepper (D) said she had been persuaded to change her mind on the outdoor dining rules by entreaties from restaurant owners. About three dozen restaurants have outdoor dining areas along King Street.

"There are some beautiful days off-season, and restaurateurs wanted to take advantage of them," she said. "We want to be helpful to them. It's a tough business."

Pepper also pushed to make the night lights along King Street, which twinkle from December to March, a permanent feature. She had mentioned the idea at a council meeting months ago and got little initial support from colleagues, but she kept the issue alive, and now the city is continuing with the lights as a pilot project. "We're going to try it," Pepper said in an interview.

With the National Harbor complex opening across the Potomac River in Prince George's County, Alexandria wants to remain competitive as an attractive entertainment destination, Pepper said. "We want people to see us as open for business. The lights will stay on, and we'll see how it goes. It's a festive sort of thing. It shows vitality and seems energetic."

Keeping the lights on year-round will cost the city an extra $64,000 annually, Taylor said.

On this point, however, urban planner Studley, who is conscious of protecting the environment, was less enthusiastic.

"I think of the lights as a seasonal thing," she said.

Pepper said the city is considering swapping the "holiday" lights for some that are more energy-efficient if officials decide to keep them on all year long.