Letter from 95th Street: Oak Lawn's Economic Recovery A Mixed Bag

With the joint House-Senate Revenue Committee ready to take on the mantle of reviewing the state’s corporate tax structure in the Illinois General Assembly, Oak Lawn’s small businesses continue to cling to what little profit gains they’ve made during the nation’s worst economic crisis in 80 years.

whose owner expressed his anxiety to Patch in January when the state’s business tax rose from 4.9 to 7 percent, has since shut its doors.

Another venerable Oak Lawn business—Pat’s Hobbies and Craft—shut its doors after more than 30 years of doing business on 95th Street.

Four other businesses have called it quits so far in 2011, according to tracking information by the.

“I’m afraid that the hobby store has gone the way of technology,” lamented Chad Weiler, Oak Lawn’s director of business operations. "Kids don't want to make models anymore."

Despite these losses, the village’s economy is showing signs of trending upward. As of June, 35 business licenses were applied for, compared to the 24 during the same period last year, Weiler said.

Further, the village’s largest construction project in 50 years ——plus two other medical buildings on 95^th Street, are expected to provide over 500 construction jobs when they break ground this summer and fall.

The village’s sales tax revenue is also on track to beat last year’s total of $11,934,481, much of it generated from car sales at Oak Lawn’s 11 car dealerships.

While Oak Lawn’s prospects are rising in some business segments, there remains on 95^th Street and Cicero Avenue.

“They’re fighting hard times right now,” Weiler said. “It’s very hard for small businesses whose rent is so high they can’t make their nut. They’ll go out of business if no one goes into their stores. The economy is still lingering, and gas prices haven't helped anybody.”

Business owners' biggest complaint: property taxes.

“You can only go to the well so many times,” Weiler said. “The small-business person has been strapped down and when there’s nothing left to be taken, what are you going to do?

“The banks got bailed out but they’re not loaning to small businesses right now. That’s huge. Everyone got bailed out except for small businesses,” Weiler added.

State Rep. Kelly Burke (35^th District) said the House-Senate Revenue Committee would be looking at more than the corporate tax, including the other types of taxes that businesses pay.

“One of the things that people have complained about from all business sizes is the cost of workers compensation,” said Burke, who supported the Illinois Workers Compensation Reform Act passed by the state legislature in May.

Burke said the bill is expected to cut workers compensation costs by up to $700 million and introduces more stringent guidelines aligned with the American Medical Association.

“The bill changes the way arbitrators hear workers’ compensation cases, and strengthens training and qualifications for arbitrators,” Burke said. “If you’re running a restaurant and paying workers compensation, this should cut your costs down and open to more hiring and improvements.”

The touted $700 million savings in workers comp costs has not yet been verified by an independent audit, according to Crain's.

Jim Muisenga, general manager of , said he didn’t find this year’s increase in the state corporate tax to be that onerous.

“It’s the cost of doing business,” Muisenga said. “I don’t think we found any of the changes to hurt us.”

For Muisenga, the economy is beginning to swing the right way for car dealers since the dark days prior to the Chrysler/GM bailout in 2009.

“Business is as good as it’s been in awhile, and it’s getting better every day,” he said.

In the past 12 months, the Ford dealership has added about 20 new jobs in sales, sales and administrative support, and porters.

People are also buying cars again, Hawk’s top sellers being the economical Ford Focus and Fiesta in a still lean economy.

“They’re the best small cars Ford has ever made,” Muisenga said enthusiastically. “I’m selling them as fast as I can get them. People are fighting for them as they come off the truck.”