MainStreet Libertyville on financial brink

Whether it was the unseasonable cold, conflicts with homecoming activities or other factors, crowds shunned the 14th annual Street Dance festival in downtown Libertyville.

Instead of netting $50,000 or more to keep operations humming at MainStreet Libertyville only $2,000 was raised, organizers of the downtown revitalization group said.

The poor showing may have turned a continuing financial shortfall into a crisis, forcing leaders of the group into making an urgent plea for funding.

"We need some pretty significant donations, especially corporate donations," said Rick Pyter, secretary of the group. "Financially, we're right on the edge."

MainStreet organizes and hosts 17 community events each year, including the popular farmers market and Out-to-Lunch program. All but two are free and attract about 70,000 visitors to the downtown area.

Despite improvements to the food and music at Street Dance, the mid-September event may have run its course. Can the same be said of MainStreet, which was formed in 1989 to reverse the slide in a deteriorating downtown?

"We'll basically have to make the decision whether we go forward or not. It's not tomorrow but it's not far off," added Pam Hume, chairman of the MainStreet board.

Since MainStreet was organized, downtown Libertyville has seen $30 million in private investment. Rents have doubled and, in some cases, tripled to as much as $30 a square foot. Nearly every available retail space is occupied.

The village invested millions in streetscape and other improvements, helping to make the downtown a drawing card and general asset.

MainStreet leaders said the strong downtown benefits the entire community in terms of housing prices and other aspects and that its work should continue.

Money magazine earlier this year, for example, noted the quaint downtown as one of the reasons Libertyville was among the best communities in the country to live.

Village officials say downtown is just part of the picture, however.

MainStreet has more than 500 residential and business members, but one of its struggles has been the lack of a clear public identity. Many people, for instance, think local government is hosting the events, some of which have become family traditions.

"They don't know it's MainStreet, but they know what they would miss if we go away," said Randy Nelson, executive director and the lone remaining paid employee.

Besides Street Dance and a golf outing fundraiser, the organization relies mainly on membership dues and a village stipend to operate.

The original agreement called for the village to contribute $50,000 a year for three years, according to Mayor Jeff Harger.

That level of funding continued well beyond that, however, until the village in 2004-05 reduced its contribution to $25,000. It currently is $10,000.

"Our budgets were getting tight," Harger said. "Every budget was slashed, and we started slashing theirs."

MainStreet revenues as of April 30 were nearly $189,000 compared with expenses of about $205,000, according to Nelson. The group needs about $10,000 a month to operate.

Village leaders, including Harger and Trustee Bob Peron, recently discussed the situation with Nelson and others.

"Have they outgrown the MainStreet model? We're not having problems filling storefronts," said Harger.

He said the group has to look at doing things differently. "Dollars are too tight these days -- they're really not a charity," he added

Peron, a former MainStreet board member and longtime volunteer, said he'd hate to see the group fold but believes it has achieved its mission downtown.

He said taxpayer money should not be used to finance nonprofit organizations.

MainStreet "throws nice events and draws people downtown" he said, but noted other entities could also do that.