What do winemaking, weddings, hot air balloons and staffing services all have in common? Nothing, except that they all fit perfectly in Galena.

Since the decline of the lead-mining industry, Galena has had to reinvent itself. The most obvious result of retooling efforts has been the rise of tourism in northwestern Illinois over the past 30 years. This robust industry, which brings 1.5 million visitors to the area every year, is the foundation of Galena's economic infrastructure. However, organizers and planners within the Galena Area Chamber of Commerce and the city's Economic Development Department, along with the local business community, recognize the need for other sustainable business and industrial solutions that can supplement tourism. Economic development officials in Galena are committed to attracting a new generation of businesses that can both fit the Galena lifestyle and benefit from Galena's resources. To accomplish this goal, officials focus on attracting companies whose products could benefit from a destination such as Galena.

Two companies that relocated to the Galena area in recent years exemplify such matches. One company, a hot air balloon manufacturer, moved its operations to Galena as hot air balloon rides over the hills of Jo Daviess County became a popular recreational activity. Another company, a staffing solutions firm, relocated to Galena from the west suburbs of Chicago; while they could operate from any location, life in Galena seemed more appealing than life in the big city. In addition to these companies, many individuals have moved to the Galena area as the technology age has enabled more people to work from their homes.

The city of Galena offers potential businesses two existing infrastructures into which they may relocate. The local industrial park provides "buildable land" to entice industrial development. For retail and service businesses, the Galena Square Commercial Center offers 70,000 square feet of space in a 25-acre spread of commercial lots and rental spaces.

While tourism continues to surge and economic development efforts work to broaden Galena's industrial base, construction and agriculture have persisted as crucial elements of the local economy. Construction has remained steady in Galena through the continual renovation of old buildings and the new development of everything from multi-family dwellings to opulent, showcase homes. Real estate development has also targeted the growing population of workers and telecommuters with affordable, single-family homes.

Local agriculture, which has traditionally focused on hay, oats, beef and dairy products, has recently entered an exciting new market: winemaking. More than 20 Jo Daviess County farms now have acreage set aside for the production of grapes for local wineries. Winemaking, which was a thriving industry in the area back in the 1800s, has experienced a resurgence. For the past 15 years, one Galena winemaker has been producing national and international awarding-winning wines just inside the town's floodgates. Another Jo Daviess County winery has recently opened south of Stockton. In addition, two more wineries are likely to open in the area in the near future, as entrepreneurs take advantage of local assets. The temperate climate and rolling farmland of Jo Daviess County provide a good environment for grape production. Coupled with these natural factors, the tourism-based economy in the Galena area ensures a steady flow of consumers for this industry. While 20 percent of Illinois wine is produced in Jo Daviess County, approximately 80 percent of wine retail sales in the state are registered north of Interstate 80. With all of these factors, Jo Daviess County has the potential to become a "Napa Valley in the Midwest."

Yet another niche industry has found a home through the unique natural resources of Galena. The area has become a popular wedding destination in recent years. Because of the sumptuous scenery of Jo Daviess County and the multitude of historic churches, inns and resorts, Galena has evolved into a place where couples can exchange their nuptials and honeymoon in elegant venues that distinguish themselves from less refined wedding destinations. As word of mouth spreads, Galena's reputation as a classic wedding destination is expected to flourish.

Beyond the area's suitability to certain niche industries, community leaders have demonstrated their commitment to economic development by providing a vast array of funding resources and incentive programs. Both the city and the county offer revolving loan programs featuring variable interest rate loans to attract investment. Over $12 million in low- interest loans has been disseminated within the local business community. The Community Development Fund of Galena and the Jo Daviess Community Development Corporation work in conjunction with local lending institutions to allocate funding for site improvements, equipment acquisitions and the creation of jobs that will benefit low- to moderate-income residents.

Additionally, local lenders provide Small Business Administration loans. At the state level, businesses meeting the prerequisites for block grant loans can receive below-market interest rates for a maximum term of 10 years. Another state program creates historic preservation tax credits for income-producing businesses located within structures listed on the National Register of Historic Places. These federal income tax incentives are intended to assist those businesses that contribute to the preservation of state treasures. Furthermore, any owner of agricultural, commercial, industrial or residential buildings that qualify as historic by National Park Service standards is eligible for tax credits.

Transportation and work force development are two other perennial concerns of Galena business leaders. Although Galena is not located on an Interstate or an operating rail system, a plethora of viable transportation options exist. As a regional hub for Chicago's O'Hare International Airport, the Dubuque Regional Airport services commercial air travel and is located just 20 miles west of Galena. Additionally, Rockford's Northwest Chicagoland Regional Airport provides service to domestic locations and nonstop flights to popular tourist destinations without the hassle of driving into Chicago. The commercial and industrial shipping requirements of Galena businesses are met by interstate and regional trucking companies. Also, a commercial barge facility operates on the Mississippi River just 10 miles from the Industrial Park. To expand the flow of traffic in Jo Daviess County, Galenians are collaborating with a joint work group to widen U.S. Route 20 to four lanes between Galena and Freeport. Plans are also being researched for the resumption of rail service between Galena and Chicago. Quality and skilled labor is maintained in the Galena area by programs at the Highland Community College Workforce Development Center in Freeport and the Jo Daviess Area Vocational Center in Elizabeth.

Major Employers in the Community

Employer......................Product/Service.....................Employees

Eagle Ridge Inn & Resort Chestnut Mountain Lodge Tri-State Travel Signcraft Honeywell/Micro-Switch Galena-Stauss Hospital

Vacation-Recreation Recreation Charter Bus Service Metal Engraving Electrical Health Care

650 250 150 125 120 85

 

Sales Tax Revenue
City of Galena

1994 – $556,118.80 1995 – $579,117.17 1996 – $625,003.56 1997 – $643,734.84 1998 – $685,438.19 1999 – $735,371.38 2000 – $738,856.09 2001 – $736,525.38 2002 – $753,449.92 2003 – $778,546.73 *This chart does not reflect hotel/motel taxes generated in Galena. Those are estimated to be approximately $400,000 per year. The 2003 sales tax number represents approximately $8 million in retail sales in the City of Galena.