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4 BUSINESS RETENTION AND EXPANSION PROGRAM BACKGROUND The Economic Development Commission (EDC) Work Plan for 2014 included completing research on Business Retention and Expansion (BR&E) programs presenting recommendation to the Economic Development Authority (EDA) to gauge interest in developing a formal program. 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. City staff attended training offered by the University of Minnesota Extension and met with several communities to discuss their BR&E programs. On October 1, 2014 the EDC reviewed programs offered by the University of Minnesota Extension and the Saint Paul Area Chamber of Commerce (SPACC). The EDC provided a recommendation to the EDA to enter into an agreement with SPACC. On January 26, 2015 the EDA approved the BRE program. 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.