George,

Sorry that I have taken a while to get back to you on the questions that you asked about the City's Small Business Development efforts. The daily campaign machinations have caused a delay in my response times.

I have been continously involved in business development in Charlottesville since the mid-1980's. Although most of my experience has been concentrated in a very focused way toward helping individuals (employees) that I have come in contact with through my business. I continue to do that today. My success in helping these employees start their own businesses has been moderately successful and defintely grass root stuff. I have also been involved in a couple of non-profits over the years, particularly Offender Aid and Restoration, who have as one of their goals employment and business establishment with their clients.

In my tenure on Council, I have been directly involved, with other Councilors in many of the City and regional initiatives listed below. In the last four years, the Council and City has devoted a considerable amount of time, money, and staff resources to various activities in the area of small business development. We have all acknowledged the importance of small business to Charlottesville - 85% of business activity occurs in companies with less than 50 employees.

To this end, as one member of Council I have supported a diverse approach to economic development activities that is built around two basic principals:

1) We must directly help Small Business to start, grow, and stay alive.

2) All programs should be diverse in sponsorship and expertise and offer comprehensive help across the board. Government cannot do it alone. The highest achievements will come through public/private partnerships.

I believe that we have been successful in these ventures. In the last three years 113 new businesses have been started in Charlottesville and economic growth has been consisitently growing at 4.5% a year. This has yielded $1 million in new net revenue to the City. These two successes have kept employment levels in Charlottesville as the highest in the State. Plus we are seeing marked improvements in income growth as well as more substantial and productive jobs. We must continue apace in improving and broadening service delivery in these programs. Our upcoming budget will include at least level funding and hopefully more. Our time commitment and staff resources will increase as we dynamically improve the programs and see investments in regional programs producing at a higher level. These efforts are some of the most productive ones that we make as a City government and we need to sustain them in the future. Can we significantly increase program funding in the next two years? It will be difficult - probably not. However, we can continue our aggressive campaign to secure federal, state and private dollars.

One area that needs greater effort is direct help to make our citizens more employable in a fast changing economy. I think that the City has positioned itself to attack this challenge in a creative and productive manner. For example, the City and the Housing Authority should strongly support the Public Housing Association of Residents and their new economic development initiative funded by the Babcock Foundation. It is exactly this type of entrepenurial activity on the part of a private organization that will greatly increase our success.

Below, I have listed some but not all of the programs that the City is involved in. Please note their diversity and comprehensive nature.

Technical Assistance
Provide regular training classes to new and growing Small Businesses covering the following topics:

• Are You Entrepreneurial?
• Marketing & Research
• Legal Structures & Your Business
• A Financial Overview
• Developing Cashflow Projections
• Creating A Business Plan

These classes are offered at no cost to the participants and bring in appropriate guest lecturers for some topics. These classes enable an individual to transition into a successful entrepreneurial experience. Most of the participants are cultivated not walk ins.

Existing Business Visitation Program
Through the existing visitation program we seek the opportunity to serve and to identify those businesses that are declining in size and those businesses that are growing. Based upon the particular case we try to provide appropriate assistance. If they are declining we may call upon the Small Business Development Center or SCORE (Service Corps of Retired Executives) to provide assistance. If they are growing we assist with identification of available space and other services in order to keep them located in the City. We also endeavor to determine areas where they may be having problems with some city agency or process. We document these (red flag issues) and then provide follow-up information and assistance.

PHA Micro Loan Program
We are an active participant in the Piedmont Housing Alliance Micro Loan Program and are currently assisting several businesses located in the City to determine if they qualify for this program. The City is represented on the Loan Review Committee.

Minority Business Program
We are working to assist minority and small businesses to be successful in Charlottesville. Many times this assistance involves training, mentoring or referral to the right entrepreneurial service providers for assistance. We also support the Central Virginia Minority Business Association as a member.

Small Business Development
SBDC provides assistance through State and Federal programs. We are aware of many of these programs and endeavor to refer them to the appropriate program for support. We have provided the SBDC with direct ($) and in-kind contributions.

Charlottesville Venture Group
We are an active participant in the CVG and refer businesses to them for assistance in developing business plans and seeking Venture Capital.

Workforce Development
We participate with the Piedmont Virginia Community College to provide space and resources for skills based training to enable small businesses to better develop their skills. This service has been focused at the Connected Community Technology Center. Projects emphasize technology training and biomedical lab skill training. We actively participate as mentors in the Computer4Kids program. The BoxerMath software program has been installed in our local library system for the purpose of enabling children to enhance their math skills, knowledge and SOL capabilities. Two Councilors ( Lynch and Caravati ) serve on the Board of Directors of this new initiative.

Connected Community Technology Center
The Connected Community Technology Center was supported by the City and provides training for children and adults. It is located convenient to our West Main Street Corridor and the UVa Medical facilities. It is strategically placed to be convenient to many of our inner city neighborhoods. The Connected Community Technology Center is home to surgical and biotech, and computer classes; Computer4Kids, Virginia Piedmont Technology Council, and Charlottesville Albemarle Schools and Business Alliance.

Center for Innovative Technology
We are working with the Regional Center for Innovative Technology to develop programs and consolidate efforts to provide one-stop services to our technology businesses.

Business Districts
We are working actively in each of the commercial corridor areas to help make appropriate commercial and mixed-use development occur. One of our successes has been the origination of the Belmont Business District and our partnering with them to solve "Red Flag " issues and to consider the future direction of this area.

Technology Zone
The Technology Zone has been enacted for the entire City and is focused on providing business license reductions for technology businesses. The impact of this program assists small businesses and although the tax reductions are not great it does enable small businesses to help focus on their products and services in the first five years of business.

CATEC
We are working with CATEC (the Charlottesville-Albemarle Technical Education Center) and other agencies interested in enhancing our labor pools in the region to develop a Public Awareness Campaign calling for more individuals to consider the traditional trades as a career option.

Staff Assistance
Numerous clients are served by phone inquiries and walk-in requests. A considerable amount of time is devoted to one-on-one assistance with business plan development and various other business related problems or opportunities.

Central Virginia Minority Business
City Staff supports CVMBA by serving in an advisory role, recommend speakers and co-sponsor events as a member of the organization.

City Council Business Recognition Award
Monthly for the past 24 months the Economic Development Department has selected a candidate to be the recipient of the Business Recognition Award given by Council in public meetings.

Business Roundtable
The Economic Development Department arranges meetings that business owners can attend to discuss economic issues with the City Manager and staff.

This is not a complete listing of all the economic development activities, but I think a flavor of Council's and my devotion to fostering economic development. I will add to the detail of this response per your request.

Thanks for all that you do George,

Blake (Electronic Mail, February 6, 2002)