Butler’s economic prospects hopeful in 2013

Area business leaders are cautiously optimistic about the area’s economic outlook in 2013 — as long as the fiscal cliff can be averted.

The overall economy seems to be showing sings of a “modest recovery,” specifically in increases in the gross domestic product, said Frank Hall, chief financial officer for First Financial Bank, the largest bank by deposit in Butler County. Question marks remain around the fiscal cliff — a confluence of tax increases, spending cuts and reduction in deficit spending that is scheduled to take place at the end of 2012 unless federal lawmakers intercede.

“That remains the big question,” Hall said. “How that gets resolved will impact significantly what 2013 looks like.”

Locally, Hall said that the area has been fortunate to not have to have dealt with the economic downturn as severely as some other parts of the country.

“It’s had a relatively muted impact,” Hall said. “The area’s employment base is diversified enough that we have the opportunity for stability, if not growth. It’s why First Financial is fortunate to be headquartered where we are, because it’s a relatively low volatility region. “

Middletown leaders are expecting to see a lot of growth in 2013, said Denise Hamet, Middletown’s Economic Development director.

“I anticipate growth next year from new development and from redevelopment across business sectors,” she said. “We continue to receive leads from the state for new projects and we are receiving interest referred to us by brokers.”

Hamet said the city’s industrial companies are exploring opportunities for growth, “and our recent new additions should go into full production mode next year.”

Good things, she said, should happen with Towne Mall — which is under new ownership — with new leases expected to be announced after the first quarter of 2013.

Middletown’s downtown, with Cincinnati State Middletown giving the city much-needed publicity, is becoming more active. Downtown Middletown Inc. director Patrick Kay said there will be seven new restaurants — including the already opened Liberty Restaurant and Mockingbird Cafe — by spring that will serve as downtown’s anchors, drawing people to the district.

Also in the spring, a second round of façade improvement grants will be offered. DMI is managing the city-funded program and earlier this year awarded $45,000 in grant funds which leveraged more than $650,000 in improvements downtown.

Bill Triick, president of the Chamber of Commerce serving Middletown, Monroe & Trenton, said he believes the future is bright for the business community as long as it is not penalized for its success in delivering high quality products and services to the consumers.

“The State of Ohio is reducing regulation and becoming more efficient; and the economy and the employment rate are steadily improving,” Triick said. “We need the federal government to celebrate and emulate this success story.”

Already started and continuing throughout the New Year is the chamber of commerce’s commitment to working with the educational professionals to best prepare students for the jobs that are available and being created and improved through their workforce development efforts and curriculum innovations, Triick said.

“We hope our local employers and families will continue to shop locally for all their business and personal needs,” he said. “That will save them travel time and work time, and reward and support those who are working day-in and day-out to make this a better place to live, work, and raise a family.”

In neighboring Hamilton, officials said they also have reasons to be optimistic for 2013.

City officials, along with its nonprofit and private partners, have developed the CORE fund to provide gap funding for developers who are willing to invest in the city as well as Hamilton Inc., a new business recruitment and attraction entity that will work with the city and other private and nonprofit partners to relocate to the city.

Hamilton is also working with Butler County and the city of Middletown on the Land Bank to acquire vacant and blighted properties and finding new purposes after renovating or demolishing structures on those properties.

The downtown area will continue to be a focus. In addition to the East High Street Gateway and the Artspace projects, City Manager Joshua Smith said successful ventures — such as the Historic Mercantile Lofts and the Butler Tech Performing Arts Academy in the former JournalNews building — will continue to spur more development and repurposing of the city’s older buildings.

“People are tired of waiting and are ready to get back in the game,” said Jody Gunderson, Hamilton’s economic development director. “I am very confident about growth in our existing and new companies.”

Kenny Craig, president and CEO of the Greater Hamilton Chamber of Commerce, said all eyes are on the federal government to see if they will be able to forge an agreement that will give businesses and consumers some level of confidence in what they expect in 2013.

“We expect that businesses will continue to see slow steady growth,” Craig said. “Unless businesses have a better understanding as to what the rules will be, we don’t expect to see large-scale hiring.”

Understanding and managing the reality of the new health care rules and costs associated with this will continue to add a level of anxiety to any new investments made in 2013, Craig said.

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