Title
Resolution to Establish Small Business Development as a Strategic Priority within the Office of Economic Development
Memorandum
On April 1, 2024, Ann Arbor City Council adopted four economic development resolutions (R-24-108, R-24-109, R-24-110, and R-24-111). Together, they directed the creation of the Office of Economic Development and established four primary Strategic Priorities:
1. Encouraging housing development at all income levels, including improving development review processes;
2. Placemaking, especially along city corridors;
3. Growing the tax base; and
4. Encouraging sustainability in the built environment
The resolutions also contain language supporting small business formation and expansion. However, it has become increasingly clear that small business development deserves greater emphasis, particularly for groups that have historically faced barriers to starting and growing a business. This resolution elevates small business development to a fifth strategic priority.
Ann Arbor's locally owned small businesses play a vital role in the City's economy, neighborhoods, and community character but they also experience challenges that are distinct from those faced by larger employers or development projects, including commercial space availability and cost, lease conditions, access to capital and technical assistance, and navigating city permitting, inspections and other regulatory processes.
The City is uniquely positioned to serve as a convener and connector among businesses, service providers, and other community partners. This role is particularly important for small businesses, which often need assistance navigating financing, technical assistance, workforce, permitting, and other support services. Establishing Business Development as a Strategic Priority will help the City more intentionally connect businesses to existing resources, identify gaps in the local support system, and strengthen coordination among the organizations working to help small businesses start, grow, and remain in Ann Arbor.
Budget/Fiscal Impact: There is no fiscal impact associated with this resolution. The actions outlined are exploratory in nature and focus on assessing needs, evaluating feasibility, and identifying opportunities for enhanced small business support. Any future operational proposals or programmatic investments resulting from this work will be brought back to City Council for consideration and approval.
Staff
Prepared by: Mariah Walton, Deputy City Administrator
Joseph R. Giant, Economic Development Director
Body
Whereas, The City of Ann Arbor has established economic development priorities focused on housing at all income levels, sustainability in the built environment, placemaking, and strengthening the tax base;
Whereas, Locally owned small businesses, including retail, food and beverage, service, childcare, neighborhood-based, and other community-serving businesses, contribute to the vitality, diversity, employment base, tax base, and economic resilience of the City of Ann Arbor;
Whereas, Small businesses experience challenges navigating City permitting, inspections, and other regulatory processes;
Whereas, Entrepreneurs who have historically faced barriers to starting and growing businesses may need more accessible pathways to City services and existing business support resources;
Whereas, The City has a unique role in improving the local business environment through its regulatory authority, permitting and inspection processes, public investments, and direct engagement with businesses;
Whereas, A better understanding of Ann Arbor's small business landscape, including business openings and closures, commercial vacancy, commercial rents and lease conditions, and businesses' experience with City processes, would help inform future economic development strategies; and
Whereas, The City can complement existing regional and community business support resources by identifying and addressing barriers that are within the City's ability to influence;
RESOLVED, That the City Council establishes Small Business Development Support as an economic development Strategic Priority; and
RESOLVED, That the City Administrator shall, in consultation with local businesses and community partners, develop opportunities to:
1. Serve as a point of contact for small businesses and help them navigate City processes.
2. Build a baseline understanding of the City's small business environment, including business openings and closures, commercial vacancy, commercial rents and lease conditions.
3. Strengthen connections between businesses and existing financing, technical assistance, workforce, childcare, and other business-support resources.
4. Increase the visibility of local businesses and create opportunities for businesses to participate in and benefit from City sponsored communications and community activities.
5. Evaluate whether affordable, shared, or other commercial space, could help emerging local businesses establish a customer base and grow in our community.
6. Engage with childcare providers to better understand and support childcare as an essential community serving business.
7. Improve the City’s permitting and inspections processes to reduce costs and time spent by small businesses.
8. Create ongoing opportunities for small businesses to engage with the City regarding their current challenges, to support continued success and growth.
Sponsored by: Councilmembers Watson, Cornell, Harrison, Ghazi Edwin, and Briggs