DeKalb city sells 2.4-acre property to NIU Foundation for Greek life center

DeKALB – The Northern Illinois University campus footprint has gotten a little bigger with the addition of an approximately 2.4-acre property at the corner of West Hillcrest Drive and Blackhawk Road on the city’s north side.

At Monday’s City Council meeting, DeKalb leaders agreed unanimously to sell the property to the NIU Foundation to build what’s dubbed the Greek Center for Life. It’s an initiative university officials have said is meant to help foster community engagement for its students partaking in Greek programming.

“This is a project we have been discussing with anticipation [and] excitement since a couple of proposals were presented to you back early in 2023,” City Manager Bill Nicklas said. “One of the projects that proposed now has chosen another site. … The NIU Real Estate Foundation has been committed from the beginning to making a difference.”

The construction of the building is slated to begin in 2028, no later than four years after the property’s closing date, city documents show.

City staff has said the NIU Foundation has some fundraising to embark on.

Seventh Ward Alderman John Walker said he believes this deal is a win-win all around.

“I have all the trust that you guys will make it work,” Walker said. “I honestly believe that when you guys set up there other people will come and invest there as well. That will make our community a lot better.”

Sixth Ward Alderman Mike Verbic said he is wary about not having clawback language included in the deal. He referenced earlier comments made by 1st Ward Alderwoman Carolyn Zasada, who said she didn’t believe the Greek center was the best use for the property.

“Alderman Zasada, I heard what you said and agree that this is not the purpose that people were generally looking for for all the meetings that we attended,” Verbic said. “I believe this is our one option for now that will spur other development. I truly believe that. City manager, I do disagree with you, though. We have a lot invested in this property. It’s on us to make sure that something happens there.”

Verbic motioned for a vote on a deal that includes clawback language, but it died failing to garner enough support.

Zasada voted for the land sale. She said on Thursday that she decided to support the deal after giving it thought, although she felt the project isn’t what the residents in the neighborhood wanted. She said she didn’t see any better alternative than to side with the rest of the council.

“I just don’t like making a vote to make a point,” Zasada said. “I had already been clear about it. I think the project is well thought out and as the council spoke, I could see where they were coming from.”

Nicklas tried to address why city staff are no longer suggesting clawback language in the deal.

He said staff were exploring what it may look like if clawback language were included in the real estate and purchase agreement for the property.

“As I thought about that over the last couple of years, and as I thought about it in preparation for this agenda, and through conversations I’ve had with Catherine [Squires] and other members of the [NIU] Foundation, I’ve retreated from that because I think that would be a deal killer,” Nicklas said. “This often happens with a major campaign at Northern in the past where you get a substantial way toward your goal. You’re anxious to get going under construction. You decide to pursue private bank financing to be able to say to a general contractor, ‘We’ve got the money on hand to pay your contract over time.’ The problem there is the banks want to know that there is collateral in the land. If the land is not going to be part of the foundation’s inventory, then that just can’t happen. So, I backed off of that.”

Third Ward Alderman Tracy Smith said he is fully behind the agreement as presented.

“I had my thoughts on agreeing to a clawback, but I’ve since pulled that back because I think it’s a good use of the property,” Smith said. “The Greek sororities have been there. … I think this is the right thing to do for that area. I have no doubt the foundation will follow through.”

Mayor Cohen Barnes said he couldn’t be more proud to see the deal go through, and he is in favor of the city’s sale of property to the NIU Foundation.

Barnes is a graduate of NIU.

“I’m proud to be a part of the vote that’ll definitely be a yes to seeing this project move forward and seeing NIU benefit from it, seeing the city of DeKalb benefit from it, but most importantly, seeing all the students that come here that attend Greek Life or that they have a house on Greek Row or not, all of them are going to benefit from this,” Barnes said. “I think that’s going to be impactful to Northern Illinois University.”