The city of Tempe has to spend money if it wants to attract more business to the area, according to economic developers.
Economic development officials will spend more than $75,000 for advertising, promotions and research to bring in more business to the area. The funds were approved during Thursday's city council issue review session.
Tempe Mayor Neil Giuliano said the city needs to be more aggressive in attracting businesses that are more apprehensive about moving or expanding due to the current state of the economy.
"When times are tough, you have to make difficult choices," Giuliano said. "I'm afraid that we're not investing enough in [economic development in] this difficult time."
Tempe currently ranks 18th in the state for money spent on economic development, according to The Business Journal. Scottsdale, for example, spends 10 times as much as Tempe does to attract businesses.
"I was a bit shocked, surprised and disappointed to see where we ranked," Giuliano said. "We need to find a way to invest more in this kind of stuff."
The city will devote more than $40,000 to promote retail development, and another $33,000 will be spent by economic developers to attract general business to the area.
They will also spend $14,000 of the money on specialized advertising in trade magazines such as Shopping Center Today, and five full-page ads designed to bring national exposure to Tempe's retail project.
About $2,000 will go to the "Try Tempe Retail Campaign" to "boost corporate spending" in Tempe.
"We're very focused on retail development now," said Jan Schaefer, economic development manager. "With these extra funds, we can really get the city name out there."
By spending more on economic development, Tempe retail specialist Tamera Norwood said she plans to bring in more retailers to the area.
"So much of our sales tax base leaks out to other cities," Norwood said. "We need to be able to market competitively."
Norwood said the bulk of the money would be used to seek out businesses.
"We feel like Tempe is so unique," Norwood said. "We're looking for different businesses to fit neighborhood centers, the [Arizona Mills] mall and downtown Tempe."
Reach the reporter at meagan.pollnow@asu.edu.
