Pappas proposing second downtown DeKalb apartment project

DeKALB – After the approval and preliminary work of the $7.5 million Cornerstone project, principal developer John Pappas is leading a proposal for another multimillion-dollar apartment and commercial-use building in downtown DeKalb.

According to a legal notice in Saturday's Daily Chronicle, properties at 124 N. Second, and 203, 209, 223 and 229 E. Lincoln Highway will be either demolished or renovated as part of the plan to build a four-story apartment building with commercial space on the first floor and as many as 23 fully furnished apartments on the top three floors.

Pappas said he is looking to buy all the buildings but would not comment on what incentives he might request from the city to complete the roughly $6 million project. As part of the Cornerstone plan, the City Council approved $3 million in tax increment financing funding to help pay for the project.

“We’re just going for the rezoning right now,” Pappas said.

DeKalb Economic Development Planner Jason Michnick said the only property set for demolition is the 209 E. Lincoln property, formerly the home of Carter’s Cottage home décor and furniture shop.

“The other spaces are currently occupied and would remain occupied after the project is completed,” Michnick said. “The corner building is currently occupied by Diamond Tour Golf, who is planning to relocate if the sale of the property goes through.”

The first floor of the Diamond Tour Golf building would be renovated into a small grocery store, while 223 and 229 E. Lincoln Highway would get a new facade and updates to the commercial space, and have their existing apartment space fully renovated, Michnick said.

DeKalb Mayor Jerry Smith said this project indicates Pappas’ willingness to invest in the community and provides an opportunity to continue with increased economic development in the downtown area.

“It should be a pretty nifty project once approved and if [Pappas] is able to get it going, then the City Council was pretty clear in the last couple of meetings that developments like this are something that the council would look positively on as it looks into the utilization of TIF dollars,” Smith said.

Michnick said Pappas also has a contract to buy the building at 201 E. Locust St. and a neighboring vacant lot, which could be used to create a parking lot, which will be discussed at a future City Council meeting.

“Those buildings would only be demo'd if council elects to require the additional parking as part of the redevelopment,” Michnick said. “The parking would then be incorporated into the city’s lot.”

Although it's too soon to predict how area businesses could be affected by traffic obstruction and other interference related to demolition and construction, Michnick said the city would continue to update businesses with such information, similar to when Cornerstone demolition began.

Final plans for the Cornerstone project, which sits on the southeast corner of First Street and Lincoln Highway, were approved during the City Council's last meeting in June, and Pappas estimates most of the work will be done by the end of the year.

Pappas said that this project had not been considered until after Cornerstone was approved, and that pending council approval, he would plan to finish construction by spring 2018.

A public hearing on the project will be held during the Planning and Zoning Commission's 6 p.m. meeting July 19 in the council chambers of the DeKalb Municipal Building, 200 S. Fourth St.

“We’re going to go through the necessary steps, and I’m sure we’ll get significant public commentary from an economic development perspective,” Smith said. “I think this is something that will continue to invigorate downtown DeKalb.”