With 2009 and the full impact of the “Great Recession” at their backs, Whidbey business owners are looking to the year with tempered optimism.

Last year, the bad news seemed to be everywhere as the worst recession in a generation worsened and banks became more careful about lending money.

“It was kind of an emotional roller-coaster for people,” Sharon Hart, executive director of the Island County Economic Development Council, said.

Brent Dove, co-owner of the high-end Eileen’s Creative Kitchenware store on Pioneer Way in Oak Harbor, said 2009 was the lowest sales year in the store’s six-year history, before a 15 percent spike in holiday sales.

“Before that, it was a bust. We’re just staying above water,” Dove said.

In 2009, about 15 businesses closed their doors in Oak Harbor for financial and personal reasons. However, some that weathered the storm saw a rebound in sales and many more people became interested in start-ups, Hart said.

“We usually see about 125 new businesses but last year we saw over 200,” Hart said of her client list for Island County. “It was a lot of people who had lost their jobs, were tired of layoffs and wanted to do something on their own.”

As far as sales tax revenues, Island County showed a significant decline over the past three years. In 2007, the county collected $5.59 million. That amount sank to $4.95 million in 2008 and $4.2 million in 2009, according to information from the Island County Treasurer’s Office.

Tourists fill island beds

Certain industries such as tourism were on the upswing in 2009, as families sought more affordable getaways. Overnight stays were up 12 percent on Whidbey, according to the EDC.

The Anchorage Inn Bed and Breakfast in Coupeville came off a record year in sales, said owner Dave Binder, who co-owns the seven-room inn with his wife Diane. August was their busiest month ever.

“People are toning down,” Hart said. “They maybe can’t take a big vacation, but they can go to Whidbey for a few days. We’re a good value.”

The year was more uneasy for many other Coupeville businesses. The economy’s collapse was one of several events that stung owners over the last three years.

Small businesses were particularly vulnerable. To cope, Aqua owner Cindy Olson said she began to offer lower-priced merchandise and her store will close one day a week during the slow winter season.

Deb Crocker, who owns three shops on Front Street, estimates a 20 percent drop in sales from 2008 to 2009. While she notices tourist traffic has declined, she said islanders are still loyal shoppers.

“Local people are shopping local,” she said.

As of November 2009, Coupeville collected $292,000 worth of sales tax. The town had budgeted to collect $300,000 in 2009, according to information from the town of Coupeville.

In some cases, business was even-keeled, such as Oak Harbor’s Ace Hardware, a landmark store on Pioneer Way. Although general manager Cheryl Wieldraayer described purchases as “careful,” especially around the holidays, she didn’t see a dip from previous years.

“People still need hardware and still need to repair their homes,” Wieldraayer said. “Anytime a customer can save money and do their own repairs, they will.”

According to Oak Harbor Finance Director Doug Merriman, the city of Oak Harbor budgeted sales tax revenues conservatively last year, anticipating a downturn. In 2009, revenues were down 1 percent from 2008 and about 3.5 percent from 2007. However, receipts were $43,370 greater than the amount the city budgeted.

Housing market looks brighter

The housing market, which dropped by about 15 percent in mid-2009, may be showing signs of recovery.

Koetje Real Estate owner Rick Schutte, of Oak Harbor, said more units sold in 2009 than the year before thanks to incentives and low interest rates.

“We’re looking forward to 2010 and expect a strong first quarter. With the tax credits, now is a fantastic time to buy a home,” Schutte said in January. The first-time home buyer tax credit was expanded in November to include repeat home buyers, too.

Hart said that although stimulus programs such as the housing and auto rebates gave buyers an incentive to act now, they are also limited.

It’s one reason that she’s more cautious about 2010 than 2009.

“There are also a lot of state things that will be cut, and we’ll have to see what that means for 2010,” she said, referring to action expected by the Legislature. “As a retailer, I’d be cautious, look at your inventory and get to know your market.”

So what’s the Whidbey merchant outlook for 2010? Most owners polled answered they are “optimistic.” National economists have also predicted a “brighter and calmer” forecast for the coming year.

But only time will tell.

THE CHANGING CLIMATE

This is a busy time for small businesses on Whidbey. Here’s a look at what happened in 2009, in lists compiled by Whidbey News-Times staff.

OUT OF BUSINESS:

Bobs Cabinet Creations

Chocolates for Breakfast

Feather Duster

Dottie’s

Stamping Pad

Fancy Pants

Kings Card Shop

Butch’s Pawn shop

Blockbuster Video

Mitzel’s American Kitchen

Frontier Chevrolet

Candy Boutique

Electric Beach

Mon Amiee’s

M and L

Buffet on Midway

Visions Hair Salon

NEW TO TOWN:

Good Times Pizza

Valle Azul

Dan’s Classic Ballroom

Indulge Spa and Salon

Allure

Numi Tanning

Lancelots Catering and Barbecue

D’Rock Quality Hair Care

La Moda Rock

Turo Turo Restaurant

Galaxy Laser Tag

J-Sun’s

Peterson Family Chiropractic

7-West

The Lotus Tea Bar and Studio

My Father’s House thrift store

Landry Insurance

Hip Hop Bouncin

Tattoo Parlor

USA Tax Pros

Little Caesars