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City of Arden Hills Economic Development Commission June 4, 2014 Page 2 of 3 Hugo and Forest Lake did not have an established business development strategy prior to launching their programs. Several of the priority projects recommended by the Extension related to improving communication between the business community and City Hall. Both cities cited the work they have done on these projects as being reason alone for undertaking a BRE program. In contrast, Coon Rapids already had an effective system in place for providing assistance to businesses before starting their program. As a result, staff at the city reported that they got less out of the process because many of the recommendations made by the Extension were activities already being done by their Community Development Department. Staff in Coon Rapids discussed how the BRE program seemed to be designed more for a rural community as compared to a suburban city and that it was difficult to adapt it to the local context. Specifically, the program requires a large number of meetings for those on the Leadership and Task Force Teams – typically comprised of local elected officials, city staff, and business representatives – and in the suburban context these individuals typically have less free time available. Suburban communities are also more likely to have a larger and better-trained community development staff that could identify priority projects for business retention and expansion without the assistance of a consultant team. Even with a consultant team, implementing a BRE program requires a significant amount of staff time. Hugo hired a part-time intern to work on the program who ended up spending an average of 10 to 20 hours per week on related administrative tasks. In Forest Lake, the Community Development Director acted as the project manager for the entire program. Depending on the scope of the program, the cost of hiring the University of Minnesota Extension can range from $10,000 to $15,000. Each city interviewed was able to find some amount of corporate sponsorship, with energy companies and local banks being the main contributors. In the case of Hugo, the program costs were entirely covered by corporate contributions. City of Shoreview Business Retention and Expansion Program Staff also completed research on the Business Retention and Expansion Program managed by the City of Shoreview. Unlike Coon Rapids, Hugo, and Forest Lake, Shoreview set up a BRE program without the assistance of a consultant. Their approach has focused on improved communications though including more business-related content on the City website, distributing a Business Matters newsletter, and organizing quarterly business exchange events that provide educational resources for local businesses. In addition, Shoreview has developed a business visitation program. A list of approximately 20 priority businesses was developed based on criteria including number of employees, tax base generation, number of years located in the City, and growth potential. Over several years, visitation teams comprised of City representatives and volunteers have interviewed all of the businesses. Before reaching out to these businesses, a tracking system was put in place to allow the City to easily respond to urgent issues brought up during the visits.