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<br />MEMORANDUM <br /> <br />DATE: March 5, 2014 EDC Agenda Item 4.D <br /> <br />TO: Economic Development Commission <br /> <br />FROM: Matthew Bachler, Associate Planner <br /> <br />SUBJECT: Business Retention and Expansion <br /> <br /> <br />Background <br /> <br />The 2014 Economic Development Commission Work Plan includes the goal of completing <br />research on a Business Retention and Expansion (BRE) Program and presenting <br />recommendations to the EDA at the end of the year in order to gauge interest in developing a <br />formal program. This memo is meant to provide a brief overview of the goals of BRE programs <br />and the typical framework of these initiatives. <br /> <br /> <br />Discussion <br /> <br />Retaining and facilitating the expansion of existing businesses is an important component of any <br />city’s strategic plan for economic development. Research shows that a significant majority of <br />new jobs are created by existing businesses rather than by businesses attracted to a community. <br />From a financial and staff-time perspective, focusing on the growth of existing businesses is <br />often more efficient than enticing a new business to move into a community with public <br />financing commitments. BRE programs help address these broad economic development policies <br />as well as the following specific short-term and long-term goals: <br /> <br /> Demonstrate to businesses that the community appreciates their presence <br /> Help existing businesses solve immediate problems <br /> Increase businesses’ ability to compete in the regional, national, and global market <br /> Establish a strategic plan for economic development <br /> Build community capacity to sustain growth and development <br /> <br />BRE programs are usually organized around a three step process: research, prioritize, and <br />implement. Step one of the process is about gathering information on current conditions in the <br />business community. First and foremost, the scope of the study must be determined: some BRE <br />programs are city-wide while others look at specific business districts or sectors. Next, a <br />comprehensive survey is written and interviews are conducted with selected businesses. The <br />collected data is then compiled for future analysis.