As debate continues for former DeKalb barbed wire building, downtown business owners weigh in

DeKALB – The DeKalb City Council again postponed a decision this week on whether to acquire a 148-year-old former barbed wire factory building, and downtown business owners are weighing in on the measure and questions of parking needs.

For weeks, city leaders and the building owner of 128 to 140 S. Second St. have hotly debated the future of the old downtown space. The council is considering whether to authorize the acquisition through condemnation of the building’s title to help pave the way for what city staff have said is needed downtown parking and improved access to an alley.

The building in question is the former home of the world’s first barbed wire factory, according to DeKalb County History Center records.

At 250 E. Lincoln Highway, Ducky’s Formal Wear owner Diane Hosey said she doesn’t think the city is making the right decision by trying to pursue the downtown building’s acquisition through the court system.

“I’m a person that likes old things,” Hosey said. “I never realized that back in the day that that was an original [barbed wire] factory. … For me, I hate to see part of history, even though nothing’s really happening with it, [go]. I guess if they don’t win, it’d be nice if somebody did do something with it rather than just have an empty spot there. I don’t know how that will really impact my business.”

Council action in a 5-2 vote this week allows for continued negotiations between the city and the DeKalb property owner. Alderpeople Scott McAdams, Carolyn Zasada, Barb Larson, Tracy Smith and Greg Perkins voted in support of the measure, while Aldermen John Walker and Mike Verbic cast the dissenting votes. Mayor Cohen Barnes abstained from the discussion and council action because his business, Sundog IT, is located in the city’s central business district and falls within the downtown tax increment financing district.

An independent appraisal of the old building done by Colliers International Valuation and Advisory Services of Chicago on July 26 proposed a market value sale price of $370,000, city documents show. A counter made previously on July 6 by attorney Mark Doherty on behalf of D-N-J Properties, which owns the building, asked the city for $475,000.

There is lots of practical parking that exists in the city. It’s just [that] sometimes it’s mildly inconvenient. You might have to walk a block or two to get somewhere.”

—  Thomas Sherman, owner of downtown DeKalb Class VI Wine Bar

Neither the city nor the property owner came to an agreement to transfer the rights to the title for the building this week.

The topic has drawn heated debate to public meetings in recent months.

In response to some comments made in the public meeting this week that alleged that the mayor – who will not have a vote and has recused himself from all public council discussion on the matter – would financially benefit from a parking lot in place of the historic building, Barnes disputed those allegations to the Daily Chronicle.

“I don’t benefit any more than anyone else in the city of DeKalb,” Barnes said.

Barnes owns 230 E. Lincoln Highway, home to Sundog IT and Byers Brewing Co. He said he also owns a small gravel lot behind the building.

Seventh Ward Alderman John Walker said he’s interested in more general downtown feedback on the plan.

“If we’re going to keep talking about the building that the mayor’s in, how about we talk about everybody that is in downtown DeKalb and the whole central business district?” Walker said. “It just makes sense that we talk about everybody, not just the people in his building. Because the thing is, the mayor recused him from up here.”

Walker said he does not support the city’s plan to acquire the building, however, and urged city officials to continue discussions “in good faith.”

“I think we should tell some of our friends to stop bad mouthing people all the time,” Walker said. “Maybe, just maybe, we can get to the desk, and maybe you guys can have a good conversation about this. But at the end of the day, I’m always voting no. I don’t care if we do it today, tomorrow, whatever. I’m not for this, and I never will be.”

City staff has argued that the push for downtown parking has become a problem for the city, much like it is for a lot of other communities.

City Manager Bill Nicklas said the city has wrestled with the question of how much is enough parking for a while.

“The Egyptian [Theatre] is a key part of that, but it’s not running every night,” Nicklas said. “To gain more traction downtown with sales tax, with restaurant/bar tax, with, frankly, just people visiting and getting to know our town and maybe wanting to come back and do other things and make this a destination, we want to have parking close in.”

Some downtown area business owners – including those with establishments directly adjacent to the Second Street building site in question, such as Class VI Wine Bar at 214 E. Lincoln Highway – said they see that the city has its share of parking problems.

Wine Bar owner Thomas Sherman said he thinks a parking garage, such as those found in neighboring areas such as St. Charles, Elmhurst or Geneva, could help DeKalb’s parking situation.

“I realize that costs money,” Sherman said. “The city of DeKalb would have to spend some additional resources, and that’s not always practical for them. The people that want to come down do find a way to come down. There is lots of practical parking that exists in the city. It’s just [that] sometimes it’s mildly inconvenient. You might have to walk a block or two to get somewhere.”

Steve Byers, owner of Byers Brewing Co. at 230 E. Lincoln Highway, said he believes the downtown area could use more parking.

“There are definitely times when parking is an issue downtown if we have really any show at the Egyptian [Theatre],” Byers said. “All of the parking in the downtown is full. Most of the time there’s not a show at the Egyptian, so it seems like we have ample parking. But then even shows that are smaller in attendance will fill up all the parking downtown.”

First Ward Alderwoman Zasada, who is a real estate agent, said she can imagine why the downtown building in question would be identified as a way to help the city obtain added parking and improved access to the alley.

“I think this building has history, but it’s no architectural marvel,” Zasada said. “Every building has a history.”

Fifth Ward Alderman McAdams argued that the city is not looking to buy a parking lot but, rather, it’s about getting rid of a blighted building in the downtown.

“That building’s not in good shape,” McAdams said. “That building’s not attractive. We just gave away a bunch of money to redo the front facade of a bunch of businesses in town. It looks like a dump. I know I’m the one who has to say uncomfortable truths to make everybody unhappy, and I’m happy to play that role if we have an open, honest discussion. Nobody’s coming here to shop and to drop a couple hundred dollars when they have St. Charles, they have Geneva, and they have those other places close by that don’t have blighted buildings.”

DeKalb resident Nancy Dougherty suggested a parking alternative that involved using area parks instead.

“It appears that it has been decided that this building needs to be acquired,” Dougherty said. “I do not know how much parking is needed for the city. When 330 Grove St. was sold, the new owner indicated that he would provide more parking and a drive-by business. In fact, if you want more parking, why not convert some parks like the one on Fourth [Street] and Lincoln [Highway] that has flower planters in it?”

If the city acquired the building, staff proposed a plan to help its tenant in relocation costs. The plan would extend assistance to Tangles on Second in the form of first and last month’s rent, moving expenses and improvement costs incurred while renovating the space should the building be acquired and the business is displaced, according to city documents.

It remains unclear how much it would cost to execute the city’s plan in its entirety.

Nicklas said it will depend on bid results coming in within budget and acquiring the building at an appraisal price of $370,000, but the total project costs could be estimated at $750,000.

The city intends to use tax increment financing funds to pay for such costs, officials said.

Attorney Mark Doherty spoke on behalf of Dan Sears of D-N-J Properties. He said his client remains committed to figuring out a way to negotiate a deal. But he said his client believes the best metric for determining fair value is price per square foot.

“I’ve heard some concerns expressed about the condition of the property, but I think if we’re going to say that we’re going to focus on the condition of this property, then we also have to do some analysis and focus on the condition of all the other comparable properties that have sold, that have helped produce the compared competitive analysis that we’ve given you and these appraisals,” Doherty said.

Sixth Ward Alderman Verbic said he is adamantly against the use of TIF money for downtown parking.

“I believe the use of TIF money should be used for new development,” Verbic said. “We’ve seen some great success with that. ... The money that should support parking downtown should come from other sources. That revenue should come from a special service area, for example, that’s come up. Hopefully, it’s on an upcoming agenda where all downtown property owners would invest in this fund that they could choose to use funds for new parking [and] maintenance of new parking.”

A separate motion made during the meeting to cease the council’s pursuit of the building’s acquisition failed in a 2-5 vote. Walker and Verbic voted in support of the measure, while Alderpeople Larson, Smith, McAdams, Zasada and Perkins cast the dissenting votes. Barnes again abstained from the discussion and council action.

Perkins, who represents the 4th Ward, said that if the city decided to back away from the deal to acquire the building at any point, it’s important that the city not leave the issue at hand with the property owner unaddressed.

“We’ve got a safety issue for the citizens of DeKalb,” Perkins said. “We have to ensure that that building is compliant and up to all the codes.”

Further consideration and a potential vote on the matter is expected at the Aug. 28 council meeting.

This article was edited at 8:56 a.m. Aug. 21, 2023 to clarify a sentence which preceded a comment made by Alderman John Walker.