DeKALB - A Rockford-based contractor could soon demolish the former Hillcrest Shopping Center building on DeKalb’s north side, part of a plan by the city of DeKalb to rehabilitate the land for future development.

All tenants of the mixed-use commercial and residential building, formerly owned by Evanston-based Hunter Properties, are expected to be relocated by the end of the month, according to city documents released ahead of Monday’s DeKalb City Council meeting, set for 6 p.m. at the DeKalb Public Library.

Northern Illinois Service Company, based in Rockford, has bid on the demolition contract for $237,883, documents show. City officials recommend council approve that bid over four others, including N Trak Group, American Demolition Group, McDonagh Demolition and Alpine Demolition Services, which proposed to undertake the project for more than $300,000.

The city announced that all tenants will be relocated from the property by April 30.

The city of DeKalb purchased the property last year from area landlord Hunter Properties amid yearslong battles over unresolved code violations.

The purchase and demolition is in an attempt to rehab the area and prepare the vacant lots for future development, city staff have said.

The site sits near another empty lot owned by the city, the former site of the Campus Cinemas building at 1015 Blackhawk Road. The city owns the long-vacant movie theater lot after being granted a lien in the amount of $400,000 on the property last year. It was demolished in October 2020.

Since buying the shopping center properties of 1011 through 1021 Hillcrest Drive for $1.18 million in August, the city has since helped building tenants relocate ahead of demolition.

The Hillcrest Shopping Center and the former movie theater create an L-shape east on Hillcrest Drive and north toward Blackhawk Road, which city staff said it believes will encourage positive development in the area once its placed on the market.

According to city documents, Andy Raih, assistant director of Public Works for Streets, Facility and the Airport, conducted an environmental review of the property, which will inform on any future removal of contaminants in the area.

The city closed on the Hunter Hillcrest shopping center sale in October with Hunter Properties, which has a colorful and controversial history in DeKalb. Tenants were given notice and a six-month grace period to relocate, city documents confirmed at the time.

The city also used $1.5 million in federal American Recovery Act funds to aid residents and businesses in relocation efforts.

According to city documents, city staff worked with both commercial and residential tenants in the building to provide relocation assistance, including reimbursement for the first and last months’ rent and a damage deposit at a new rental location, as well as reimbursement for moving expenses.

To date, the reimbursements have totaled $120,725, with one final relocation reimbursement expected, documents show.

The mixed-use rental retail building at 1011 through 1027 Hillcrest Drive is one of four rental properties owned by Hunter Properties that the landlord must sell as part of a recently approved settlement agreement between the landlord and the city. Hunter Properties is required to sell the buildings by April 2023 after years of involving concerns expressed by city staff, officials and tenants over poor quality of living in the spaces and hundreds of city code violations.

Per the settlement agreement with local landlord Hunter Properties the DeKalb City Council approved a year ago in April 2021, the buildings that Hunter Properties is required to sell include Hunter Ridgebrook, Hunter Tri-Frat, Lincoln Tower and Hunter Hillcrest.

In December, the DeKalb City Council approved a $1 million incentive for a Chicago developer to buy more than 400 Hunter Properties rental units in the city, including Lincoln Tower, Hunter Tri-Frat and Hunter Ridgebrook.