Politics & Government

Niles Business Climate Has Some Bright Spots, Mayor Says

But manufacturing vacancies are up and sluggish economy isn't helping village's retail sector, he tells Chamber in annual address.

Mayor Robert Callero gave business executives a cautiously optimistic take on the Niles business climate Wednesday, saying unemployment is down and new businesses have opened, adding jobs. He tempered his remarks, though, by noting the economy’s sluggishness.

In delivering the annual mayoral address at a luncheon sponsored by the Niles Chamber of Commerce and Industry at , Callero also assured business people that the village is addressing issues such as transportation, flood prevention and comprehensive planning in order to help the businesses stay afloat in this economy.

“The signs for the U.S. economy are mixed but trending upward ever so slowly,” the mayor said, noting those signs are reflected in Niles’ large retail sector.

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Earlier:

He had some bright notes to offer, saying the Niles unemployment rate is 6.9 percent, down from 7.7 percent a year earlier.  Also, 42 new businesses opened in Niles in the first half of 2011—a net figure after the businesses that closed were taken into account.

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Those new businesses, which include , and , have added 350 jobs to the local economy, Callero said.

But he expressed concern about the consumer confidence level he quoted as 45.4 percent, because, he said, consumer spending accounts for 71 percent of the nation’s economic activity.

“When customers are more confident they’ll spend more freely,”  Callero said.

Callero cited other indicators, some of which seemed promising and others not.

Office and manufacturing vacancy rates were up two percent, though the overall vacancy rate for businesses declined, he said.

The village board assumed a two percent increase in sales tax for this year’s village budget, and while sales tax receipts are just short of that figure, the mayor said, he expects holiday sales to bring the village up to budget.

Retail industry associations expect somewhere between a 2.8 percent to 3.5 percent increase in holiday spending over last year, which would help Niles’ retail sales receipts.

However, the construction sector is not faring as well.  Permit fees are down from 2010, mainly because a spring hailstorm required many residents to get their roofs replaced last year.

The mayor assured business leaders the village has its own financial house in order, with an average of $20 million in the general fund, achieved through layoffs and other trims in the budget similar to what businesses have done, he said.

"At $20 million we are well-funded and stable," he declared, adding the village has an excellent AA1 bond rating.

He also told the executives the village has been working on to get shoppers to stores, that the village is working hard on and that the , passed on Oct. 25, will be a guiding document for Niles' businesses and residents.

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