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______________________________________________________________________________ City of Arden Hills Economic Development Authority Meeting January 26, 2015 Page 1 of 3 NEW BUSINESS – 3B MEMORANDUM DATE: January 26, 2015 TO: EDA President and Commissioners FROM: Matthew Bachler, Associate Planner SUBJECT: Business Retention and Expansion Program Requested Action Review the Business Retention and Expansion Service Proposal submitted by the St. Paul Area Chamber of Commerce (SPACC) and provide staff with further direction. The Economic Development Commission (EDC) reviewed this proposal at their meeting on October 1, 2014, and voted to recommend that the EDA contract with SPACC to implement a Business Retention and Expansion program. Jonathan Weinhagen, Vice President of SPACC, will be in attendance at the meeting to give a formal presentation on the proposal and to respond to questions. Background The Economic Development Commission Work Plan for 2014 included completing research on Business Retention and Expansion (BRE) programs and presenting recommendations to the EDA to gauge interest in developing a formal program. Over the course of the year, staff and the EDC discussed the role of a BRE program in the context of the City’s economic development goals and how this type of program should be structured to ensure successful outcomes. Retaining and facilitating the expansion of existing businesses is an important component of any city’s strategic plan for economic development. Studies have shown that as much as 80 percent of new jobs are created by existing businesses rather than by new businesses attracted to a community. From a financial and staff-time perspective, focusing on the growth of existing businesses can be more efficient than enticing a new business to move into a community with public financing commitments or other public subsidies. BRE programs help address these broad economic development policies as well as the following specific goals: