Libertyville gains business, holds its own in economy

The Artist at Heart store that opened in downtown Libertyville last summer was to have been the company's second location. But it didn't turn out that way.

Brisk business and a flexible landlord made for a geographic shift rather than an expansion.

“This one was doing so unbelievably well we decided to close the store in Long Grove,” said co-owner Vicki Tucker. “We get free heat, too.”

Tucker's experience is one example of what kept Libertyville ahead of the curve in 2010 in terms of business arrivals and departures.

A summary shows 59 businesses throughout the village were approved as new arrivals, relocations or expansions, compared with 36 that left or went out of business. There are about 900 listings in the village's business directory.

While an annual churn is to be expected, village officials appear satisfied with the business climate in town during 2010. While the activity is not confined to retail establishments, the net gain is important to a village that has been hit hard by the recession.

“I think overall, we saw an influx of business last year and it was a positive sign,” said Heather Rowe, economic development coordinator.

According to MainStreet Libertyville, eight businesses were added downtown in 2010 and two left. That doesn't include several ventures in new buildings a few blocks south on Milwaukee Avenue, including Chipotle Mexican Grill and Five Guys Burgers and Fries.

“Our vacancy level (downtown) is lower than it was last year. We still have some but they've decreased significantly,” Rowe said.

Turn-of-the-century character, ample events and a mix of uses often are noted as draws. Landlords also appear willing to deal.

Soccer Plus opened May 1 in the prominent space, vacant for two years, on Milwaukee and Cook Avenue that was formerly occupied by Washington Mutual.

“Compared to what Washington Mutual was paying, we got a pretty good reduction, I thought,” said owner Bob Naughtrip, who has operated in Palatine for 15 years.

Looking for a second location, he was considering space on the northwest side of the village near the Libertyville Sports Complex but changed his mind after visiting downtown.

“I thought we had an opportunity to capture some consumers who would not otherwise go into a soccer store because they were walking by,” he said.

Business so far has been “a little slower than I had hoped,” Naughtrip said, noting the operation is still relatively new to town.

Aside from the retail businesses, Rowe said two large industrial projects had an impact.

“It's not always about sales. It's about generating business activity — they go to restaurants in town, they're employing people in the community,” and providing services to other businesses, she said.

Fabrication Technologies, which specializes in engineering and processes for medical equipment, electronics and other industries, added 75,000 square feet for sheet metal and assemblies.

In what is considered a large expansion, Hearthware Home Products, the makers of the NuWave ovens and other appliances, is moving from Gurnee to about 167,000 square feet of previously vacant leased space on Butterfield Road for distribution and customer service operations.

“Part of the expansion is due to the fact they have new products in the pipeline,” said Robert Elbrecht of Tri-State Realty. “A lot of it is driven by facilities — we looked at buildings all over.

Libertyville is still feeling the effects of the recession, although 2011's prospects do not appear as dire as 2010.

“It's looking better,” Mayor Terry Weppler said. “Right now, I think we're holding our own and things are improving.”

Issues remain. The amount of sales tax the village receives peaked in 2001-02 at about $8 million and bottomed out in 2009-10 at $5.5 million. A slight increase is projected for 2010-11.

New or increased utility taxes enacted Jan. 1, 2010, have been extended to April 30, 2012 to help plug the gap.

“We're just hoping to eliminate the furlough days (for nonunion employees) and things like that,” said Finance Director Pat Wesolowski.

“We're not out of the woods but at least there are some positive signs,” she added. “Last year at this time, we were in crisis mode.”