Retail, housing heading up the hill

Wayne County collected more in sales tax revenue in 2013 than it ever had.

The $9.6 million was about 3 percent higher than collected in 2012, but the rate of growth appears to be lower than the average increase of counties and transit authorities across the state.

Wayne County's numbers are for a full year. However, the figures from the Ohio Department of Taxation run from January 2013- September 2013. The counties and transit authorities collected $1.55 billion for the first nine months, compared to $1.47 billion over the same period in 2012. The rate of increase was 5.3 percent.

"We came in very close to our projections," Commissioner Ann Obrecht said. "I was pleased with the sales tax; it's what carried us through."

"In Wayne County, things were pretty stable versus most parts of the country," said Stephen Huttie, president of Wooster-based Crown Retail Consulting. "There is a good, overall balance. New car sales were pretty good and helped the sales tax."

Alan Ratliff, who owns Northtown Centre, the shopping center on Burbank Road that houses Pat Catan's, Panera Bread and Dunham's Sports, among other establishments, said retail on the north end is going well.

There has been virtually no vacancies for years, and Ratliff predicted after the JCPenney store closes May 3, it won't be vacant for very long. The major retailer announced in January it was closing 33 underperforming stores, and Wooster was among them.

"A lot of larger stores are calling us to get into Wooster," Ratliff said. He believes a retailer like T.J. Maxx could move into the JCPenney space.

Ratliff built an addition onto his retail space during the recession in 2008. Even so, it did not take long to fill up, he said.

Tom White, one of the partners of the Rural King Ohio stores in Wooster and Elyria, said the local store has experienced nearly double-digit growth in 2013. The economy here is "very strong and healthy. ... I know other retailers would like to be here, but there's virtually no retail space here."

While the rise in sales tax revenue reflects an economy that is growing, county Administrator Patrick Herron said it is difficult to count on that money being there every year.

This uncertainty is not something that concerns only Herron. Huttie works with "small, regional players," and they have gone to a "very limited full-time work force," he said. The retailers are bringing workers in on a part-time basis.

Some retailers have seen an increase in sales while others have not, Huttie said.

Those who had operations with 20-30 people are shrinking those numbers because of what is happening with the government and the health care reform, Huttie said. "They are concerned about taxes going forward."

Minimum wage also is an issue for retailers, Huttie said. "There's nothing concrete out there anymore. To have a three-, five- or seven-year sales plan is difficult to do and be profitable."

These retailers need to do their due diligence on people they hire and look at the quality of people they hire because salary costs are skyrocketing, mainly because of benefits.

Retailers also are dealing with a shrinking base of suppliers.

"There's less competition in trying to get merchandise in a lot of these stores," Huttie said.

Though retailers might have some concerns about how the economy will fare in 2014, a couple of custom home builders are optimistic about the year ahead, mainly because 2013 turned out to be a pretty good year for them.

Merle Stutzman, president of Weaver Custom Homes, said consumer confidence is up. There has been steady increase over the past three years, and he has seen a good start to 2014.

Other indicators things are improving include an increase in membership of the National Association of Home Builders, of which Stutzman is on the board, and more vendors booked more space at this year's International Builders' Show in Las Vegas.

Ratliff, who also owns Ratliff Custom Homes, said land sales are always a precursor to new home starts, and he is seeing a tremendous demand for building lots.

"When we see that, we'll see more houses built," Ratliff said.

Reporter Bobby Warren can be reached at 330-287-1639 or [email protected]. He is @BobbyWarrenTDR on Twitter.