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File #: 170971    Version: 0 Name:
Type: Resolution Status: LAPSED
File created: 11/2/2017 In control: Committee on Commerce & Economic Development
On agenda: Final action:
Title: Authorizing the Committee on Commerce & Economic Development to hold hearings regarding initiatives to support employee ownership, including as a retirement strategy for small business owners.
Sponsors: Councilmember Green, Councilmember Henon, Councilmember Parker
Attachments: 1. Signature17097100.pdf
Title
Authorizing the Committee on Commerce & Economic Development to hold hearings regarding initiatives to support employee ownership, including as a retirement strategy for small business owners.

Body
WHEREAS, Retiring owners might be able to avoid closing their businesses by selling partial or complete ownership of the company to their employees, maintaining commercial corridors, preserving jobs, and building wealth in our communities; and

WHEREAS, Individuals born between 1946 and 1964, known as "baby boomers", comprise a disproportionate share of America's small business owners, and are increasingly struggling to sell or transfer ownership of their businesses as they reach retirement age, forcing them to close their otherwise profitable businesses; and

WHEREAS, There are multiple employee ownership succession strategies that a retiring business owner and their employees may consider, including worker cooperatives and employee stock option plans; and

WHEREAS, Worker cooperatives, or co-ops, are businesses equally owned and governed by their employees, operating within a multitude of industries, including food services, construction, cleaning, and other services; and

WHEREAS, Worker co-ops are mission driven organizations that focus on issues being priotized by City government, including the provision of Keystone Stars childcare, bringing healthy food to low income neighborhoods, building wealth for immigrant communities, and facilitate job training for returning citizens; and

WHEREAS, Worker co-ops are more likely to stay in business after five years compared to other businesses, and have strategies to avoid layoffs during periods of economic recession; and

WHEREAS, As mission-driven companies focused on increasing the quality of life of the community, worker co-ops are generally more environmentally conscious and efficient than comparable businesses in the same industries; and

WHEREAS, An employee stock option plan, or ESOP, allow...

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