6.0 EDSR 03-09-2009 - Laserfiche WebLink

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IETM # 6. ~~~ ~..- ver MEMORANDUM TO: Economic Development Authority FROM: Annie Deckert, Economic Development Assistant DATE: March 9, 2009 SUBJECT: Consider 2009-2010 Business Retention & Expansion Program Background Since the formation of the EDA, Business Retention & Expansion (BRE) visits have been held with Elk River manufacturers. In the past, staff has recorded such visits, which range in style from conducting formal surveys to informal lunch meetings. Most recently in 2007, EDA Commissioners joined staff in conducting informal lunch or breakfast meetings followed by facility tours. It is apparent that manufacturers appreciate the extra attention from EDA Commissioners. In return, the EDA has always commented to staff its sincere interest in attending these visits. Staff has found the informal approach to be beneficial and imperative to building relationships with the business owners. Issue Since 2007, there have been vacant positions in the Economic Development Department, which has led to a lack of staff resources to be consistent with the program. Studies show that a healthy and vibrant local economy depends on the well-being of a community's existing firms. In fact, 40 to 80 percent of all new jobs are created by existing firms rather than by attracting new firms to the community. This is not an unfamiliar statistic to staff and the EDA, which is why it is important to continue BRE visits in Elk River. BRE visits help demonstrate community support for local firms and may assist in solving immediate business concerns. Attached you will find a list of past EDA visits. Staff Recommendation There are approximately 50 manufacturing firms in Elk River. Staffls goal is to complete two to three visits per month, completing all visits within a two year time frame. In the past, one EDA Commissioner and one staff member has attended these lunches, with tours available following the lunch if offered by the business owner. Staff has found this relationship-based approach to be both informational and beneficial. Attached you will find a list of current manufacturers; please indicate which businesses you are interested in visiting. Staff will follow up with EDA Commissioners individually to schedule the visits.