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In
February, the Elk Grove Economic Development Corporation (EGEDC)
became a reality and will immediately begin implementation of
the Community First Initiative. The Initiative lays out a
five-year strategy to strengthen the local economy by adding
1500 commercial, professional and industrial jobs. The EGEDC
will be funded through investments in the program by private
industry and public agencies, with the majority coming from
the private sector.
The Elk Grove Chamber, strongly believing that the creation of
these jobs is crucial to the health of the local economy,
invested heavily in the creation of the program and the EGEDC.
The first phase of the program was to assess the need and
support for a five year program and develop the goals of a
program. The Chamber-funded research, conducted by National
Community Development Services (NCDC), a nationally recognized
firm specializing in local development, revealed a substantial
need for a sound program – and that such a program is
crucial to Elk Grove’s future as a thriving municipality.
The vast majority of this city’s employed residents export
their talents, skills and experience for the benefit of
business and community interests that are well beyond the city
limits. This phenomenon results in a burden on the region’s
transportation system, increased pollution from required
commutes, and, most importantly, the draining of resources,
both financial and, more importantly, the quality of lives of
local residents.
The NCDS research showed that an effective private and public
sector partnership focused on economic development would be
most effective in addressing this need. Based on the research,
the Chamber developed the Community First Initiative, an
outline of a five year program with three major initiatives:
(1) New Business Recruitment, (2) Business Expansion and
Retention and (3) Partnering with the Chamber, the City and
other organizations.
The specific objectives of the Initiative include the creation
of new jobs through assisting existing businesses grow and
recruitment of new businesses resulting in 1500 new jobs over
the five year period. Statistically, that gain would generate
a total of 2,731 added jobs, resulting in a grand total of
4,231 jobs when auxiliary jobs are created to support the new
jobs. The target of the program is to create jobs
that otherwise would not come based solely on population,
e.g., retail, or jobs that are already in the pipeline such as
the planned medical facilities expansions.
The study also showed that a campaign to provide $2,250,000
over a five year period for the program implementation was
found to be feasible. To fund the EDC and its programs, the
Chamber launched the capital campaign in February. The funds
generated through the campaign will be used exclusively to
fund the creation and the program work of the EDC, including
hiring of staff and securing office space, to facilitate
implementation of the program. As a result of the capital
campaign, the EGEDC and its programs will be financed by EGEDC
memberships and managed by a Board of Directors, with input
from an Advisory Board.
The NCDS study showed that the EGEDC Program would result in a
return on these membership investments from a variety of
sources, including an estimated $83,224,707 in new local
retail taxed expenditures yielding approximately an additional
$832,224 in sales tax revenues for the City of Elk Grove. With
new jobs locally, patronage at local restaurants and other
service providers would also be increased.
Funding and formation of an Elk Grove EDC through the
Community First Initiative is Elk Grove’s next great step,
giving it a significant voice in determining its own economic
future.
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Janet Toppenberg, President/CEO |
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