Deciding what form an economic development organization should take is a relatively new problem. Philadelphia, Pennsylvania, may have been the first city to establish a nonprofit corporation concerned with the economic development of the entire city. Many cities now look to Philadelphia as a model. Organizations for economic development take a wide variety of forms. Some have a very close relationship with the city government, while others are governed by boards completely composed of private-sector representatives. The city of St. Paul, Minnesota, believes that economic development can best be accomplished by an agency as an integral part of city government. St. Paul has accomplished a number of projects because its city departments are working cooperatively and are fully aware of the city's total economic, housing, commercial, and recreation needs. Philadelphia's separate corporation, on the other hand, has found ways to create and retain jobs and improve the city's tax base.


