55B - RESO WORKER COOPERATIVES - Laserfiche WebLink

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Resolution Supporting Development and Growth of Worker Cooperatives August 1, 2017 Page 2 According to ESRI data, Santa Ana's current median income is $54,640 in comparison to Orange County's median income of $81,194. Lower wage workers typically cannot afford to quit their jobs and become small business entrepreneurs, but could become co-owners through a cooperative conversion. Worker cooperatives enable workers in the community to gain important business and leadership skills and assists individuals with significant barriers to employment. By promoting and supporting Worker cooperatives, Santa Ana is creating a key job retention strategy for local community wealth building. Many business owners do not have succession plans and communities should be prepared for the impending retirement of these businesses. Many times, these businesses close or relocate out of the area impacting the local residents that work there. By supporting the development of worker cooperatives, these businesses can take advantage of a new business structure that enables the workers to become owners and keep their jobs and the business in the City. At the May 15th Economic Development, Infrastructure, Budget and Technology Council Committee meeting, the Committee introduced the concept of a worker cooperative and recommended staff to research and meet with local stakeholders. City staff is currently working with local stakeholders, like Santa Ana Building Healthy Communities, who are actively engaging and incubating local worker cooperatives in the City. Their focus is on addressing local issues such as food insecurity, wage inequality, and other positive health outcomes for Santa Ana's residents. Upon City Council approval of the Resolution, staff will continue to collaborate with local organizations in evaluating and developing recommendations on how the City can incentivize and support the formation of local worker cooperatives. Evaluating the City's procurement policy, license and fee structure, and the Community Development Block Grant (CDBG) small business grant program are some of the elements that will be discussed with the local stakeholders. Recommendations will be provided for City Council consideration. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #1, (Implement a comprehensive Economic Development strategy to ensure that Santa Ana is a City with a vibrant business climate that is accessible, user-friendly and welcoming to all residents and visitors), Objective #5, Strategy C (Develop a knowledge base to foster economic development by actively partnering with non-profit organizations). FISCAL IMPACT There is no fiscal impact associated with this action. 55B-2