DeKalb city leaders postpone vote to acquire 133-year-old downtown building

DeKALB – DeKalb city leaders this week sparred with the owner of an 133-year-old building eyed as a way to grow downtown parking only to table the matter for two weeks.

The two-story building, located at 128-140 S. Second Street, has been a topic of debate at public meetings dating back to last month.

But discussions between the city and the property owner first started in January, according to city documents.

Dan Sears, the principal of D-N-J Properties, said during the meeting that he does not consider matters in good standing between him and the city.

“I feel the city’s not being forthcoming and honest about negotiations on the building,” Sears said. “From day one, [City Manager Bill] Mr. Nicklas has demanded things that are not part of the contract between two parties in a voluntary transaction, which they claim they want. There’s nothing voluntary about it. I’m being forced to sell this building to the city. If anyone else bought my building, that buyer would accept the assignment of and honor all leases. Mr. Nicklas has clearly stated he would not do that. From day one, Mr. Nicklas promised he’d used every legal means available to get the building. That message delivered isn’t wrapped in good faith.”

Nicklas said negotiations had stalled with the property owner prompting the city to put the ordinance authorizing the building’s condemnation on the meeting agenda for consideration.

According to the city, part of the contention between the two parties had dealt with the property owner not allowing the city to get its own appraiser inside the building.

Sears said he’s not sure how the city came under the impression that he wouldn’t allow it to get an appraiser in the building. He said he would be open to letting their appraiser in and that he had never received contact from the city requesting such access to his building.

The city, on the other hand, has had an anecdotal appraisal performed on the exterior of the building and it valued the property at $243,000, only for the city to extend the owner an offer of $275,000, according to city documents. The owner had a window of 10 days to respond to the offer, which has since passed.

Nicklas said the city still would like to find out what the property’s fair market value and acquire the building from its owner.

“One of the reasons why we’re here is because but for the threat of eminent domain we probably wouldn’t be this far,” Nicklas said. “We’re happy if we’ve reached this point where we’re all in agreement that there ought to be a full inside and outside appraisal. We’ve made some progress. It’s been contentious and needn’t have been that way.”

Not everyone during public comments shared the same viewpoints.

Donna Gable said she would like for the building to be preserved, not torn down.

“It feels terribly ironic to me that in Barb City, we’re going to lose a piece of barbed wire fencing history,” Gable said. “I’d rather have a plaque on a building than a plaque on a parking lot.”

Stacey Chilton said he would rather have more space for parking in the city’s downtown.

“Every time I look out my back door, I see a building that should be a parking lot,” Chilton said. “I support the city trying to acquire that property, make it into a parking lot and help the whole downtown.”

Some council members expressed support for proceeding with eminent domain to acquire the building.

Fourth Ward Alderman Greg Perkins said the council needs to take action to help improve the city’s downtown.

“I want to move the ball forward because we’re still focused on trying to develop the downtown,” Perkins said. “Whether it’s a parking lot or not, I see value in improving accessibility for that block down there. That’s the first thing that I see. Now if we develop it, great. But I want to do something. I’m just not happy with the current condition of just being.”

Attorney Mark Doherty spoke on Sears’ behalf, refuting the argument made by some DeKalb city leaders calling for the building’s condemnation.

“I understand that the council is considering approving the pursuit of an eminent domain proceeding,” Doherty said. “I submit that the pursuit is not necessary – not now, perhaps not ever.”

Dan Sears’ brother, Joe Sears, said this is a “crummy” way to be put out of business.

“This is all driven by the want for parking, not the need,” Joe Sears said. “The businesses on Lincoln Highway might want that parking, they don’t need it. We have plenty of downtown parking. Everybody knows it. This is about certain businesses wanting parking right next to theirs. It’s not a need for more parking spaces.”

First Ward Alderwoman Carolyn Zasada, who is a Realtor, said she hopes the city can find a way to proceed without exercising the legal powers of eminent domain.

“I don’t think a parking lot is the highest use for this land,” Zasada said. “I think that the building itself likely is the highest use and improvements to the building are likely the highest use. … I’ve never really been a fan of more parking. I think I’ve said very frequently that we don’t need more parking. However, I can envision it being useful to business owners downtown. I can see that business owners would really appreciate having that located in a better spot that’s more efficient for all of those businesses that that alley backs up to.”

Second Ward Alderwoman Barb Larson urged the City Council to table its vote and come to the table to negotiate.

“Everybody come with good faith and try to take any emotions out of words and thoughts that are chosen and ... try to come up with the best agreement that everyone can walk away with,” Larson said.

But Perkins said he’s concerned that if the council postponed the matter, there needs to be a definitive date set for continuing the discussion or taking potential action.

“We’re having this conversation I think now because there is some eminent domain pressure to get to the table and start talking,” Perkins said. “The longer we wait, the more we kick it out.”

Nicklas agreed.

“I support the council’s idea of tabling this until we can see that,” Nicklas said. “I also support Alderman Perkins that it shouldn’t be an open-ended timeframe.”

A motion was approved in a 6-0 vote to table taking any action on an ordinance to condemn the property. Third Ward Alderman Tracy Smith was absent. Mayor Cohen Barnes recused himself from the vote and discussion because his business, Sundog IT, falls with the downtown tax increment financing district.

DeKalb city leaders are expected to give the matter further consideration at the council’s next meeting in two weeks.