Blase, who was mayor for 47 years, is serving a 366-day sentence for extorting businesses to buy over-priced insurance from a friend's firm.
The friend gave Blase kickbacks exceeding $400,000.
Niles trustees voted 4-to-3 Tuesday night to retain Blase's name on the village hall campus.
The current mayor said Blase did many good things.
One dissenting trustee argued that by breaking laws, Blase squandered his achievements and tarnished Niles's reputation.
