By By ANDY HAMILTON / Niles Daily Star
NILES – The City of Niles may not have to pay back the money used to revamp Main Street.
The opening this week of Chemical Bank on Main Street, and its 12 employees, pushed the number of new Main Street jobs created to 45. The mark the city was required to hit in order to avoid paying back more than $1 million was 39 jobs.
"Assuming that everything goes as planned and that the Chemical Bank employees complete the form and the state accepts the Chemical Bank [jobs], we'll be able to formally close out the project. The only remaining item would be a formal hearing … before the city council," said Juan Ganum, Niles community development director.
A 2002 Community Development Block Grant from the Michigan Economic Development Corporation (MEDC) awarded the Niles Downtown Development Authority $1.17 million – $30,000 for each of the 39 jobs created on Main Street. The deadline to meet the job amount was extended twice. A similar agreement with the state gave Niles a separate grant for creating 13 jobs on Front Street, most of which came from Riverfront Cafe, Ganum said.
The $1.17 million was spent only on projects for Main Street between Front and Fifth streets, and covered the costs of the new sidewalks, planters and furnishings, such as the trash bins, as well as part of the faade improvements, Ganum said. Niles also received two grants for a total of $525,000 from the Plym and Hunter foundations, he added.
Niles City Administrator Terry Eull said the Main Street grant is like a loan between the city and the State of Michigan, and he warned the state still has to give the final approval to excuse Niles from repayment. If the agreement is not fulfilled in the state's eyes, Eull said money from the Niles Downtown Development Authority fund would be used to pay the loan back.
"We're hopeful after a complete review that [MEDC] will accept it," Eull said. "That's not a done deal and it has to be reviewed and approved by them."
Ganum, Eull and Niles Main Street Director Lisa Croteau said when first presented the 39-job mark was met with optimism by city officials, council members and DDA members. Ganum said about four years ago former city council member Scott Clark stood up during a meeting and suggested Niles take the risk by accepting the loan.
"Everybody thought it seemed like a pretty large number but everybody was very excited to have the opportunity to try and do it," Eull said.
Croteau said she attributes the accomplishments downtown largely to the MEDC grant.
"That money allowed the aesthetic changes that were necessary to take place, and kick start downtown," she added.
The next step for downtown Niles, Croteau said, was to continue the business growth and development through more festivals, concerts and other Main Street activities. Ganum said the changes paid for by the grant were huge because they transformed downtown Niles into "a beautiful canvas" necessary for sparking interest in businesses looking for a location.
"The more challenging aspect of revitalization is attracting businesses," he said.
Croteau announced recently two new businesses coming to Main Street. Cycle &Fitness at 211 E. Main St., a bicycle shop, and a frame shop and art gallery called Frame of Mind at 215 E. Main St., are both scheduled to open next month.