POST FALLS - Despite a continued rough economy, Post Falls has reason to celebrate this year.

During his State of the City address to the Post Falls Chamber of Commerce at Red Lion Templin's Hotel on Tuesday, Mayor Clay Larkin said that while 84 business licenses were stopped, 106 new ones were issued this year.

"A net gain of 22 businesses at a time when there are a lot of people suffering is really good," Larkin said in front of about 125 people.

A sparkplug in the wings is the Beck Road interchange at Interstate 90 near Cabela's. Construction may start in 2012 and is expected to lift activity which has sagged in that area in recent years.

"Interested businesses are waiting," said Larkin, adding that the recent opening of the Stateline bridge should also help commerce. "It would be our Christmas present if dirt (for Beck) is moved in 2012."

Another I-90 project aimed at improving traffic circulation - at Greensferry Road - was bumped when the City Council in June decided to not extend the life of the East Post Falls Urban Renewal District.

Larkin said that while new commercial construction has doubled - valuations are up four times over last year - single-family home permits are down about 50 percent.

Some businesses, including the iconic Hot Rod Cafe that hosted the River City Rod Run, closed while others such as the Love's travel center opened. UnderGround Force, which is being built and will manufacture underground mining equipment, is expected to add about 100 new jobs in 2012.

Larkin said he expects there will be three to five announcements of medical additions to expand on that growing sector.

"There's two that I'm aware of already that will raise the bar on the services we have right now," Larkin said.

The election in November also brought change when 34-year-old Joe Malloy denied Scott Grant a sixth term on the City Council. Grant has served for 21 years.

Idaho National Guard soldiers based out of the Post Falls armory returned from Iraq with mixed emotions, having followed through with their mission while losing fellow soldiers Sgt. Nathan R. Beyers, 24, and Spc. Nicholas W. Newby, 20, during a roadside bomb attack.

A third local soldier, Staff Sgt. Jason Rzepa, 30, was injured in the blast. He had both his legs amputated below the knee and is recovering at a military hospital in Texas.

"If anyone thinks freedom is free, it is not," said Larkin before holding a moment of silence for the victims.

Post Falls Police continued to add programs, including text-a-crime, suicide awareness and a second police dog. It received accreditation from the Idaho Chiefs of Police Association to become the first agency in North Idaho to do so.

Among the city's initiatives in 2012 will be developing the "We Value" strategic plan, which will guide decisions and the budget over the next five years.

Plans to meet more strict wastewater discharge requirements, serve future growth with water and provide additional park space have been completed or are in the works.

STCU's Alan Wolfe, who attended the speech, said Post Falls is destined to shine despite some bumps in the road that come with a recession.

"The positive thing about Post Falls is that it can still draw business to keep us ahead of the game," he said. "As we recover, that will help. It's also nice to see that, since things are slow, why not sharpen the pen to do some planning?"

Larkin chose Sysco Foods as the recipient of his annual Community Service Award.

"They're a silent hero, donating to the food bank and other agencies," he said. "They do a lot behind the scenes."