D.C. Mun. Regs. tit. 10-A, § 703
703.1 The District can do more to leverage the strengths of its economy and the region’s skilled, highly educated labor force. It already has an enviable mix of assets that includes the nation’s capital, high-performing industries, numerous colleges and universities, amenity-rich neighborhoods, and a robust multimodal transportation system that links the entire metropolitan region. To increase its competitiveness, the District will need to further diversify its economy in sectors that have growth potential.
703.2 The District’s economic growth strategy emphasizes sustaining established industries as well as growing and supporting six cross-cutting industry clusters. Supporting and enhancing core industries facilitates future growth that strengthens the District’s competitive advantage. Established fields include the federal government, professional services, universities, media and communications companies, hospitality and tourism providers, and design firms.
703.3 Beyond the established fields, the District will also build economic resilience by supporting and growing cross-cutting industry clusters where the District has a competitive advantage nationally. Economic resilience is the ability for the District government, in partnership with businesses and the workforce, to mitigate the impacts of chronic stressors (such as high unemployment) as well as shocks (such as the sudden loss of economic activity due to a recession or technology changes). The clusters include the impact economy, smart cities and civic solutions, professional services innovation, hospitality innovation, security technology, as well as data science and analytics. By supporting these forward-looking industry clusters, the District is seeking diversify its economy.
See also the Infrastructure Element for additional information on smart cities.
703.4 Figure 7.3 Cross-Cutting Industry Clusters Identified by the 2016 DC’s Economic Strategy
Figure 11: Opportunity Areas
(certified as the Comprehensive Economic Development Strategy or CEDS by the U.S. Economic Development Administration in August 2017)
703.5 The District is also a center of international business and foreign direct investment. The foreign missions and offices of global economic organizations, such as the World Bank Group and the International Monetary Fund (IMF), represent a major economic sector in their own right. The concentration of missions and institutions makes the District a unique place to conduct business for companies engaging in international investment or transactions.
703.6 Figures 7.2 and 7.3 provide some indication of where the District's economy may be headed. Since 2004, four sectors—professional, scientific, and technical services; accommodation and food services; health care and social assistance; and educational services—have produced more than 80 percent of new private sector jobs in the District. Looking forward to 2026, the DOES 2016 industry projections indicate that these four sectors are likely to continue producing the vast majority of job growth over the next six years. Among these sectors, growth in the professional, scientific, and technical services segment is particularly beneficial because it is one of the District's strongest domestic and international export industries. Exports are important because they help drive higher rates of economic growth by capturing spending from other economies.
703.7 Between 2016 and 2026, several high-growth industries—including computer systems design and related services; professional, scientific, and technical services; ambulatory health care services; and food services and drinking places—are anticipated to drive growth, offsetting stagnant federal government employment and procurement as well as losses in declining industries, such as travel arrangement and reservation services.
703.8 The 15 industries listed in Figure 7.4 represent more than half of the job growth expected in Washington, DC during the 10-year period between 2016 and 2026. Some of the gains reflect continued growth of core industries like professional, scientific, and technical services; health care and social assistance; and food services and drinking places. Other gains are in emerging sectors, which show promise for even greater expansion.
703.9 Figure 7.4: Top 15 Projected High-Growth Industries, in the District 2016-2026
| Industry | New Jobs Projected |
|---|---|
| Professional, Scientific, and Technical Services | 14,450 |
| Educational Services | 7,283 |
| Ambulatory Health Care Services | 7,214 |
| Administrative and Support Services | 6,337 |
|---|---|
| Management, Scientific, and Technical Consulting Services | 5,438 |
| Computer Systems Design and Related Services | 5,433 |
| Food Services and Drinking Places | 4,886 |
| Home Health Care Services | 4,187 |
| Social Assistance | 3,680 |
| Colleges, Universities, and Professional Schools | 3,103 |
| Elementary and Secondary Schools | 3,084 |
| Religious, Grantmaking, Civic, Professional, and Similar Organizations | 2,138 |
| Employment Services | 2,109 |
| Hospitals | 1,943 |
| Total Federal Government Employment | 1,785 |
703.10 In 2018, the District’s economy had been growing in employment and output for 20 years. Long-standing core sectors had propelled economic growth along two dimensions: expansion of established lines of business and the addition of new lines of business. Strength in established sectors had positioned the District to take advantage of growing segments in the nation’s economy by specializing in rapidly growing technology-driven and enabled fields, such as cybersecurity and coworking. Through continued growth in core sectors and emerging industries, the District will continue building a resilient and inclusive economy.[{"box_2d": [112, 530, 885, 758], "label": "text", "caption": "In 2017, a new federal tax law, the Tax Cut and Jobs Act, included a tax incentive program called Opportunity Zones. The program provides tax benefits for investors with capital gains that invest through Qualified Opportunity Funds in real estate and operating businesses located in Census tracts designated as Opportunity Zones. The tracts—nominated by each state, the District of Columbia, and U.S. territories—were certified by the U.S. Treasury Department as Opportunity Zones, which are eligible to receive investments from the Qualified Opportunity Funds. This program, although unproven, could be a useful tool in attracting investment in communities that have historically been overlooked by many investors. The District is focused on aligning Opportunity Zone investments with community priorities and supporting community-driven projects in leveraging the incentive."
703.11 Map 7.1: Federal Opportunity Zones within the District
OP100030254
(Source: DC GIS 2019) Note: As of 2019, the Opportunity Zone designations are set to expire December 21, 2028.
703.12
Continue to support and grow the District’s core industries, particularly the federal government; professional, scientific and technical services; religious, grantmaking, civic professional, and similar organizations; postsecondary education; accommodation and food services; health care and social assistance; and administrative support services.
703.13 Policy ED-1.1.2: Economic Linkages Leverage the potential of core industries to provide new employment opportunities, particularly the growth of businesses that supply essential goods and services to the government, universities, hospitals, law firms, hotels, nonprofits, and other major employers in the District.703.14 Policy ED-1.1.3: Diversification Diversify the District's economy by targeting fields with the greatest potential for growth, including the impact economy, smart cities and civic solutions, professional services innovation, hospitality innovation, security technology, and data science and analytics. Established industries with significant growth potential include retail, international business, infrastructure, and building construction.703.15 Policy ED-1.1.4: Promote Local Entrepreneurship Support District residents, including women-owned businesses and equity impacts enterprises (small, resident-owned Black and Brown business) seeking entrepreneurship opportunities through layered programs, including technical assistance, promotion of District products and services, and market development.703.16 Policy ED-1.1.5 Build Capacity and Opportunities Focus on building capacity and opportunities to participate in core and growth industries for minority- and women-owned businesses. Ensure under-represented entrepreneurs have access to business opportunities created through public sector spending, anchor institution spending, and corporate supply chains. Provide layered support through technical assistance, product promotion, and market development.703.17 Policy ED-1.1.6: Competitive Edge Maintain and enhance the District's competitive edge relative to the metropolitan Washington, DC region and U.S. markets in fields such as federal government, professional services, health care, postsecondary education, media and communications, and hospitality and tourism. Enhancing the District's competitive edge may require continued government support and performance-based incentives for economic development programs; government participation in local economic development projects and initiatives; strengthened capacity among local economic development organizations, community development corporations, and workforce development groups; well-maintained business fundamentals, including transportation access; and support for and partnerships with communities of color .703.18 Policy ED-1.1.7: Use of Large Sites Plan strategically for large development sites to ensure that their unique potential is fully realized both as a source of economic dynamism and equity building, maximizing the sites' utility to the District. View the sites as assets to further the
District’s goals to diversify its economy and provide inclusive, equitable job growth, for housing and affordable housing production, and to bring desired amenities and services to neighborhoods. Sites with Metro access and priority transit access should be used to advance growth in emerging industries that diversify the District’s economy.
703.19
Draw on international business and institutional assets to develop businesses that specialize in international trade of goods and services. Expand cultural opportunities to residents and visitors, and create links between the District and foreign cities, industries, retail, institutions, and markets.
703.20
Support efforts by Destination DC and the Metropolitan Washington Airports Authority (MWAA) to strategically expand direct flights and market the District as a tourism destination to foreign markets. International visitors generate particularly large amounts of tax revenue that benefit District residents.
703.21
Maintain an Economic Development Strategic Plan that lays out in greater detail the steps the District must pursue to maintain and grow its economy. This plan should cover all economic sectors, evaluate competitiveness, and include strategies for workforce development, as well as business attraction and retention. It shall be developed through broad input from stakeholders, including those representing resident, industry, communities of color, and education interests. The Plan should identify approaches that provide recruitment and opportunities to participate by small and minority-owned businesses, and approaches to close the racial income and wealth gaps in the District.
703.22
Maintain and regularly update statistical data on employment in core sectors, wages and salaries, forecasts by sector, and opportunities for future employment growth. Where possible, the District should consistently track, collect, and disaggregate data by race.
703.23
Monitor and update appropriate data to support 2020 public health emergency response and recovery efforts. Such data will include a wide range of economic indicators and drivers, such as jobs, population, and housing, and where possible, should track, collect, and disaggregate data by race.
703.24
Work collaboratively across District agencies to streamline processes and create a
more centralized system that assists businesses in meeting regulatory requirements quickly and efficiently, with a particular focus on serving small and local businesses, equity impact enterprises, businesses that show the promise to create many jobs, and businesses that help the District meet goals, such as its commitment to reduce greenhouse gasses. Centralize information and assistance to small and local businesses on starting a new business, the business permitting processes, zoning, fees and regulations, incentives, financing, unique programs, and opportunities. Create and maintain a fast-track permits and approvals system for businesses interested in opening or expanding in priority, underserved neighborhoods.
703.25 Action ED-1.1.E: Improve Access to Capital and Financing Opportunities Support collaboration between District agencies and private organizations that facilitate increased access to capital for District entrepreneurs. This includes strategic grantmaking, facilitating small business access to capital, and facilitating new forms of investment, such as social impact investing and Opportunity Funds.
703.26 Action ED-1.1.F: Identify Underused Sites Explore the feasibility of identifying underused commercial sites using techniques such as parcel-based development capacity analysis. This identification would inform land-use planning and economic development.
703.27 Action ED-1.1.G: Monitor Opportunity Zones Monitor effects of the federal Opportunity Zones incentive in DC's Qualified Opportunity Zones to ensure that these programs benefit communities and to identify and address adverse community impacts, particularly to communities of color. If significant impacts are identified, recommend program and policy changes to mitigate the impacts.
703.28 Action ED-1.1.H: Stabilize Business Occupancy Costs Explore program and policy alignments that stabilize or reduce commercial occupancy costs in the District, especially for historically disadvantaged businesses. Potential options include alignment with the District's sustainability programs to reduce energy costs, increased awareness of small business capital programs, and agreements for the reuse of public lands.
703.29 Action ED-1.1.I: Increasing Exports Seek opportunities to increase domestic and international exports of goods and services produced by District-based organizations through cost-effective strategies. Examples include high-visibility pop-ups that introduce DC brands to new markets, and foreign trade missions that help build new business partnerships.
SOURCE: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR
1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996 effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996 effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58 DCR 908 (February 4, 2011)); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).