DeKalb’s economy is “on the rebound” with a low unemployment rate and expansion of businesses that generate a large tax base, according to the city’s Economic Development Commission’s 1987-1988 annual report.

“The report shows good, solid, progressive economic growth within the community,” said DeKalb City Manager Mark Stevens. “We have had no indication from the data to indicate this positive trend won’t continue.”

The commission is an advisory body to the DeKalb City Council.

The report indicates the city’s tax base expanded through industrial and commercial development and cites the increase in sales tax as a measure of the impact coming from the expansion of business and industry. Community retail sales tax in DeKalb increased 9.5 percent during fiscal year 1988 and 22.5 percent during the last two years.

During FY88, five sites in the 11.8 acre Wurlitzer Industrial Park were sold to local businesses, yielding an estimated 45 to 50 jobs, said Linda Boyer, grants coordinator for the community development department of DeKalb. These businesses include Cardinal Glass, E. B. Inc., J. & M. Welding, Bollinger Construction and Mascal Electric.

Using state and city financing incentives, six businesses expanded, creating 260 new jobs.

Two industries will relocate in DeKalb as a result of efforts of the commission. Vale Industries, which manufactures specialty hydraulic cutting tools, will bring the community 22 new jobs during its first two years of operations. D.B. Hess, a commercial printing operation, will create 65 new jobs for the community.

In addition to the expansion of the local industrial base, the retail sectors have expanded. Thirteen enterprises opened in DeKalb during 1988. Also, 33 businesses plan to expand their operations this year.

Low unemployment also characterizes the region. DeKalb County has the lowest unemployment rate of all Illinois counties. By June 1988, DeKalb’s unemployment rate was 3.8 percent, according to statistics from KDK Training, Employment and Business Services. This is compared to a state rate of 6.9 percent and a national rate of 5.5 percent.

However, this low rate does not account for underemployment.

Housing experienced a surge of growth. In 1988, 59 permits were issued for single-family homes, compared to 43 issued in 1987. Eighty-two new multi-family units were constructed in 1988, compared to 76 in 1987. Six new subdivision plans with 71 new building lots were approved in FY88.

Despite the positive growth, some problems remain. Up to 15 vacant storefronts throughout DeKalb’s central business district negatively impacted businesses.

The Greater DeKalb Partnership, an umbrella organization representing commercial districts of the community, was formed. The partnership will coordinate other economic development and tourism activities.

The commission also placed $6,525 worth of advertisements in trade magazines for real estate development. As a result, the city received about 75 inquiries from industries requesting information about the community.

Also, to encourage Japanese-based firms to settle in DeKalb, the commission published Japanese-language brochures about the city.