Despite the ongoing recession, several St. Charles businesses recently have unveiled major renovations and expansions.

St. Charles Toyota, Holiday Inn Express St. Charles and St. Charles Bank and Trust planned their upgrades — all of which cost $1 million or more — before the current economic downturn, but proceeded with plans as the nation’s economy faltered. Representatives for the three companies said the improvements have put them in position to thrive when the economy begins to recover. 

St. Charles Bank and Trust opened its doors in 2006 with plans to build a permanent headquarters in the city’s downtown. As the economy started to unravel in 2007, the bank continued with its plans for a 19,000-square-foot facility on Main Street west of the Fox River.

“As a new bank, we knew we would be growing quickly,” Thomas Hansen, the bank’s president and chief executive officer said. “The economy, it’s really being a drag on the local business community, but the bank has been growing tremendously.

“In the last 10 months, we’ve almost doubled in size (in terms of deposits),” he said.

The bank was able to use its own capital to fund the construction of the $10.3 million building at 411 W. Main St. and did not have to rely on outside financing, Hansen said. The bank opened the doors of its new headquarters at the end of June, moving from its previous location at 311 N. Second St.

Hansen said some components of the financial maelstrom have benefited St. Charles Bank and Trust. As consumer confidence in large national and international banks has flagged, many people are looking to smaller local banks for their deposits and for borrowing, he said.

The bank has been able to build loyalty with customers by lending to local merchants with viable businesses who were turned away by bigger banks, Hansen said.

St. Charles Toyota, 2651 E. Main St., also cut the ribbon on its newly expanded facility in late June. The dealership nearly doubled its size to about 55,000 square feet and added 11 new bays to its service area.

The $5 million renovations included major upgrades to the customers waiting areas including wireless Internet access, large screen TVs and a children’s play area.

While work already was under way when the downturn started, co-owner Michael Alf said the current climate would not have changed their decision to make improvements.

“Even in hindsight, we would have done it,” said Alf, who owns the dealership with his father, Dennis, and brother, Steven. “We needed to expand.”

While the U.S. auto industry has struggled, Toyota remains a strong and growing brand, Alf said.

The expansion has helped the dealership accommodate its growing customer base, cut down on waiting times for vehicle service and set business apart from its competition, he said.

Holiday Inn Express also is hoping to set itself apart from the competition with its $1 million renovation that coincided with the international “relaunch” of the Holiday Inn brand, general manager Bob Langelund said.

The major focus of the renovations was opening up the complimentary breakfast area to flow right into the lobby. Other upgrades included redesigning the business center and front lobby and adding a convenience mart.

The hotel also improved 122 guest rooms with new furnishings, bed linens, pillow selection, carpet and wallpaper and upgraded bathrooms.

InterContinental Hotels Group, the parent company of Holiday Inn, recently nominated the Holiday Inn Express St. Charles for 2009 Renovation of the Year. The renovations made their public debut at a reopening celebration last week.

“When the economy does turn, we’ve got one heck of a product,” Langelund said. “I’m very glad we didn’t cut back on anything.”

Lori Hewitt, president and chief executive officer of the St. Charles Chamber of Commerce, said it is important for businesses that are considering major upgrades during the down economy to do their homework and focus on improvements that will set them apart from the competition.

“The people who have invested (in upgrading) are really great business people, because they understand their marketing, they understand their customers and what’s really going to draw them in,” Hewitt said. “They’re taking a risk, but they know their businesses well enough. ... In these instances, think they’re really good business decisions.”