POST FALLS - It has been a year of change, challenges and new opportunities for Post Falls.

Mayor Ron Jacobson delivered his first State of the City address on Tuesday during the chamber of commerce's membership meeting at Red Lion Templin's Hotel.

Jacobson said Post Falls has experienced change, loss, tragedy, failures and federal government regulation - and survived.

"We have done more than survived," he told 120 people attending the meeting. "We have shown character and willingness to better ourselves and our community."

On the business front, Post Falls recently learned that Kimball Office plans to shut down its local office manufacturing plant over the next two years to consolidate with its operations in Indiana.

Earlier in the year, Unitech Composites considered relocating its aerospace parts manufacturing facility from Hayden to Post Falls before deciding against it.

"We don't always win," Jacobson said. "We will, however, continue to aggressively compete. Quite often we do achieve success."

Aerospace parts manufacturer Advanced Thermoplastics Composites (ATC) Manufacturing is building a $4.9 million, 65,000-square-foot facility just west of Kimball Office.

Jacobson said he believes ATC's move from Spokane Valley, fueled by Idaho's tax reimbursement incentive program, will have a ripple effect.

"We have received inquiries from two other companies that are also considering relocating to Post Falls," Jacobson said. "To them, and others, I say, 'Bring us a good clean business, pay a living wage and you will find us waiting with open arms.'"

Jacobson said two major road construction projects - the Greensferry Road overpass at Interstate 90 and improvements in the city center on Spokane Street - should also help create economic development activity next year.

Another major milestone was reached when the city received its wastewater discharge permit after the previous permit for the Spokane River expired about 10 years ago.

River cleanup mandates from the U.S. Environmental Protection Agency will require Post Falls to spend about $50 million in treatment plant upgrades over the next decade.

The city experienced some major staffing changes this year, including the departures of former Mayor Clay Larkin, former Public Services Director Terry Werner and contract attorneys Jerry Mason and Nancy Stricklin.

It also lost former Police Chief and County Clerk Cliff Hayes, businessmen Scott Shawver and Wayne Knudtsen, and former school resource officer and Cabela's spokesman Pete Marion.

"They truly represented the spirit of Post Falls," Jacobson said.

The police department experienced an officer-involved shooting on the freeway and a double murder.

"It is important for the public to realize the toll these types of events take on police officers," Jacobson said. "Post Falls is well-protected and our police force is second to none."