Former barbed wire factory won’t be condemned, DeKalb City Council decides

DeKALB – A 148-year-old former barbed wire factory in DeKalb won’t be condemned after a plan that would have paved the way for 27 added parking spaces downtown failed to muster enough DeKalb City Council support this week.

Alderpersons John Walker, Mike Verbic and Carolyn Zasada cast the dissenting votes. Mayor Cohen Barnes abstained from the discussion and vote because he owns commercial property within the city’s Tax Increment Financing District where the building is located.

DeKalb city leaders this week instead directed city staff to continue efforts to negotiate a deal for the rights to acquire a downtown building, 128 to 140 S. Second St. A potential sale has loomed for months spurring controversy between city officials and the building’s owner, Dan Sears of D-N-J Properties. Efforts to buy the building also have stalled.

“I don’t feel that I have the appetite for this project anymore,” Zasada said. “I understand eminent domain has its purpose and its place. … But I don’t feel that this is the right thing to do in this context of the added value to the community versus the negative impact to say these whole three people.

—  Carolyn Zasada, DeKalb Ward 1 Alderwoman

A separate motion passed in a 4-3 vote calls on city staff to continue with negotiations with the owner of the downtown building. The dissenting votes were cast by Walker, Verbic and Zasada. Barnes also abstained from that vote.

First Ward Alderwoman Zasada said she doesn’t support city staff’s proposal aimed at acquiring the building using the powers afforded under eminent domain.

“I don’t feel that I have the appetite for this project anymore,” Zasada said. “I understand eminent domain has its purpose and its place. … But I don’t feel that this is the right thing to do in this context of the added value to the community versus the negative impact to say these whole three people. I don’t care how few people it is. If this was anybody’s property, we’d be quite irritated. I think that part of our American values are pretty deeply rooted in property ownership and property rights.”

Second Ward Alderwoman Barb Larson said she remains all in with city’s effort to acquire the building.

“We want to try to purchase the property for a fair and equal price because we have 40,000 people that we’re responsible to, and we’re looking at how we can make DeKalb better,” Larson said. “I can’t just look at the small picture. I have to look at the whole city.”

With the majority of the council opposing the condemnation ordinance, it signaled to city staff that code enforcement was the preferred way to go as a potential avenue to acquire the building, something City Manager Bill Nicklas said he disagrees with.

“We should hold them accountable to the standards that we have approved and we enforce everyday,” Nicklas said. “I assume you want to be vigorous in the enforcement of the codes. We have not done that. We certainly have not done that in the last eight months as we’ve had conversations about this and wouldn’t do it. But now, that looks like the alternative that we’ll wait and see if someday they’ll sell it. We’ll buy it for more and tear it down. It doesn’t sound like a good deal for the taxpayers. It’s certainly not a good deal for the downtown as we’re trying to rejuvenate.”

Sixth Ward Alderman Verbic disputed Nicklas’ take on the matter, saying he’s all for the city investing in code enforcement.

“I’ve said that before not selectively because we can’t work a deal here,” Verbic said. “I’m talking about code enforcement evenly throughout the community, investing in it to make sure situations like Hunter Properties and such don’t end up on the backs of our taxpayers. If we are proactive about code enforcement, I really do believe we can raise the bar in DeKalb.”

Nicklas said there are still details that would need to be worked out before the city may acquire the property in a deal. He said both sides are getting closer to reaching an agreement on the points of contention.

The purchase and sale price for the downtown building would be $420,000, if the city and the owner struck a deal as is, according to city documents. That amount is derived from the $370,000 independent appraisal conducted by Colliers International Valuation and Advisory Services of Chicago plus an added $50,000 offered by the city.

Discussion turned also to what might happen to the single tenant inside the former barbed wire factory.

Jennifer Boddy, who operates Tangles on Second beauty salon that is the only business inside the Second Street building, made a plea to the council, asking that an agreement for relocation assistance is put in writing.

“I certainly am not here thinking that I’m going to get a big payout,” Boddy said. “I never thought I was going to be in this position, but it’s not stated anywhere about compensation for myself. I’ve been reeling for a whole week of what I am going to do, where I am going to go. I don’t trust the fact that if it’s not in writing that anything is going to happen.”

DeKalb city staff had initially proposed a plan to cover relocation costs for Boddy’s business separate from any sale. City staff said this week that’s still on the table, but the relocation costs now are included in the $420,00 purchase offer put forth by the city.

Nicklas said the added $50,000 the city is offering on top of the appraised $370,000 amount is meant to help cover tenant relocation costs. Nicklas said he’s also encouraged Boddy to apply for the city’s Architectural Improvements Program, which provides city grants through tax increment financing to local business owners looking to improve their business’ facades.

City Attorney Matt Rose said that however the city proceeds, a resolution will come before the Council regarding the tenant who operates Tangles on Second and her lease at a later date.

“It is a condition that the sale will not go into effect if the city is taking the lease as part of the sale,” Rose said.