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6 BUSINESS RETENTION AND EXPANSION PROGRAM BACKGROUND The Arden Hills Economic Development Commission (EDC) researched Business Retention and Expansion (BR&E) programs as part of their 2014 Work Plan. City staff and the EDC discussed the role of a BR&E program in the context of the City’s economic development goals and how this type of program should be structured to ensure successful outcomes. The EDC evaluated program options and recommended to the EDA that the City enter into an agreement with the Saint Paul Area of Chamber of Commerce (SPACC). The EDA approved the SPACC BR&E program on January 26, 2015. Importance of Business Retention and Expansion (BR&E) 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 created are by existing businesses rather than by new businesses attracted to a community. With the increasing scarcity of resources at the local level, 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. Program Objectives Business Retention and Expansion programs set out to achieve a multitude of goals. Some of the goals identified by the City of Arden Hills include:  Demonstrate to businesses that the community appreciates their presence  Help existing businesses solve immediate problems  Increase businesses’ ability to compete in regional, national, and global markets  Establish a strategic plan for economic development  Build community capacity to sustain growth and development over the long term Program Sponsors The City of Arden Hills Business Retention and Expansion program was sponsored by the Economic Development Authority at the recommendation of the Economic Development Commission. Program Organization and Leadership Launching a Business Retention and Expansion program in a community takes a great deal of organization and leadership. City staff played a key role in identifying businesses to be visited, coordinating with the EDC, and executing BR&E visits. Matthew Bachler, Associate Planner, was the overall leader of the Arden Hills BR&E program.