RANCHO CORDOVA, CA (MPG) - The Rancho Cordova City Council approved a resolution on Dec. 2 authorizing the City Manager to execute a contract with the Rancho Cordova Area Chamber of Commerce for business retention services. The agreement, valued at up to $2,777,937, will span from February 2025 to February 2028.

The contract aligns with the city’s broader economic development strategy, which was presented to the council in November 2024. The plan outlines three key areas for development: business growth, placemaking and real estate, and workforce partnerships. Each area includes specific initiatives aimed at strengthening the city's economic landscape.

Diann Rogers, CEO and president of the Rancho Cordova Area Chamber of Commerce, spoke about the potential impact of the partnership.

“There is a strong correlation between early access to relevant training and increased likelihood of business success,” she said, referring to programs targeting small business growth, including a focus on artificial intelligence and minority business assistance.

“The Rancho Cordova Chamber of Commerce is recognized regionally as a respected provider of programs and services. Our desire is to expand and have a greater impact on small and medium businesses within the city.”

The programs proposed under the contract will focus on small business formation and growth, such as a minority business recovery project and AI training for local entrepreneurs. Additionally, the Chamber will assist in the collection of business retention and expansion data, which will be used to inform future development strategies.

Workforce development is another key aspect of the agreement. The Chamber will collaborate on the Talent Pipeline Management Program, designed to connect local businesses with potential employees and create educational pathways for high-demand jobs.

The Chamber will improve its revenue streams to ensure long-term sustainability, with a data-driven roadmap aimed at scaling programs and expanding offerings to better serve the local business community.

Councilmembers expressed support for the proposal, but not without some questions about the budget.

“We have Measure R dollars associated with economic development, but this means we may not be able to fund something else later,” said City Manager Micah Runner.

Mayor David Sander raised concerns about data collection and its role in measuring the success of economic development programs.

“The hard part with economic development is that it is easy to imagine ways that could help businesses, but it’s hard to measure if you’ve actually done it. Do you think you have enough data collection in place?” he asked Rogers.

“We require data collection for every program we participate in,” Rogers replied. “These three programs also have the capacity to overlap and collaborate with each other, which will help us track success.”

Councilmember Siri Pulipati expressed the need for greater outreach to ensure small businesses are aware of the resources available to them.

“How do you go about finding these small businesses? We need to do our due diligence and make sure these opportunities are known to more people,” Pulipati said.

Rogers responded, “Word of mouth has been effective, and our recent business fair was a success. We have also brought a marketing director on board to help with outreach.”

Councilmember Garret Gatewood praised the potential for growth, noting,

“This is so exciting. We can actually pass programs that feed the overall growth and health of our city. The growth is going to be such a benefit,” Gatewood said.

Pulipati also raised a concern about business retention, asking, “Is there a retention policy to ensure businesses that participate in the program stay in the city for a period of time?”

While no specific retention policy was mentioned, Rogers confirmed that the Chamber would consider looking into that possibility.

Pulipati also questioned whether a smaller pilot program could be considered.

“This is a heavy lift. Do you have an option B with a reduced amount of money, or could you just try it as a pilot with a smaller figure?” asked Pulipati.

Rogers responded, “We did look at that option, but to implement these programs correctly and give them a solid foundation, we believe this is the amount of funding needed. I do not want to do anything halfway.”

Public comment included a question from Darrell Lingle, who asked about data collection on incomplete applications.

“With an 80% completion target, will data be collected on applicants who don’t complete the program so future applicants can be studied to improve success rates?” Lingle asked.

The motion passed unanimously.