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DeKalb house-buying plan on hold Aldermen: Using TIFs to convert multifamily homes needs more study By DAVID THOMAS dthomas@shawmedia.com DeKALB – DeKalb aldermen want more information before they decide to buy private homes and convert them at a financial loss. That’s the central policy question the DeKalb City Council needs to decide under a proposal that would have the city use tax increment financing to buy multifamily houses and convert them into single-family homes in the Ellwood Historic Neighbor-
hood, which is northwest of downtown DeKalb. “Is that loss worth the benefit of reducing density in the neighborhood?” City Manager Mark Biernacki said. No vote was taken at Monday night’s meeting. City staff will present more information about the pilot conversion program during the council’s Committee of the Whole. DeKalb aldermen voiced positive sentiments about the program. Alderman Dave Baker, of the 6th Ward, said he would vote for the program.
“I think there would be a tipping point eventually where that would be the most valuable spot in the neighborhood,” Baker said. Officials believe the city Mark will lose $45,000 Biernacki City manager per house conversion. They are estimating buying a house at $150,000 and renovating it at $75,000, then reselling it at $180,000.
Biernacki said the program would be voluntary, and there would be legislation to ensure that the house could not be converted back into a multifamily unit. The program would start with one willing property owner. “We have worked with a local realtor and contractor to identify a willing seller of a multiunit house in the neighborhood,” said David Castro, a member of the Ellwood House Neighborhood Group, a group of residents who have worked with the city in the
past to restore the area. However, neither Biernacki or Castro knew how many multifamily houses this program could apply to in the Ellwood Historic Neighborhood. As the 5th Ward alderman, Ron Naylor represents residents of the Ellwood Historic Neighborhood. Although he indicated his support for the program, he wants more information, including information about the viability of converting some of these houses. “How much more life is really left in some of those hous-
es?” Naylor said. David Jacobson, 1st Ward alderman who has been a vocal critic of how TIF funds are used, expressed some skepticism about the program. Jacobson wanted to see private developers take the initiative with this program, and was worried about the city getting involved in property speculation. “I think it would be a great opportunity for a lot of developers and home builders to get involved and step up,” Jacobson said.
Obama tries to defuse scandals
A YEAR AFTER SALE, FATE OF OLD SCHOOL BUILDINGS UNCERTAIN
On defense with IRS, Benghazi By JULIE PACE The Associated Press WASHINGTON – President Barack Obama tried to swat down two brewing controversies Monday, denouncing as “outrageous” the targeting of conservative political groups by the federal IRS but angrily denying any administration cover-up after last year’s deadly attacks in Benghazi, Libya. Simultaneous investigations – and demands by Republicans for more – have put the White House on the defensive, emboldened GOP lawmakers and threatened to overtake a second-term Obama agenda already off to a rocky start. During a joint news conference with British Prime Minister David Cameron, the normally even-keeled Obama appeared agitated over the resurgent investigation into the September attack at a U.S. diplomatic compound in Benghazi. He dismissed the Republican-driven effort as a “sideshow” that dishonors the four Americans who were killed, including Ambassador Christopher Stevens. “There’s no there there,” Obama declared in his first public comments since GOP lawmakers launched new hearings on the matter. “The fact that this keeps on getting churned up, frankly, has a whole lot to do with political motivations.” Seeking to keep another controversy from spinning out of control, the president rebuked the IRS for scrutinizing the tax-exempt status of groups with conservative titles such as “Tea Party” or “Patriot” in their names. Those responsible, Obama said, must be held “fully accountable.” “I’ve got no patience with it,” he added. “I will not tolerate it and we will find out exactly what happened.”
Still vacant Since being auctioned off, no work has begun at old Cortland and Malta elementary schools By DAVID THOMAS dthomas@shawmedia.com
S
tephanie Black wouldn’t have moved to 113 S. Nina St. in Cortland if she knew the school across the street was going to close. “I wish the school never closed down,” Black said. “That’s why we bought [the house] eight years ago.” The old Cortland Elementary School, which has been closed since 2009, used to be very convenient for Black. She said her children used to walk to school and play in the field that surrounds the building. Cortland Elementary School and Malta Elementary School were sold at auction a year ago to an Iowa-based businessman. Since then, virtually no work has occurred at either of the former schools, although their owner, Destan Aliu, has said he wants to turn at least one into a banquet facility. Jerry Thompson, a village trustee
in Malta, can sympathize with Black. His house is a block from the old Malta Elementary School, which DeKalb School District 428 closed at the end of the 2010-11 school year. In addition to being a vital part of the community, Thompson said he misses seeing students walk to school. “It was always nice to sit on the front porch and wave to the kids coming and going,” Thompson said. “On a very personal level, I miss that a lot.” Aliu paid $82,500 total for the two school buildings in 2012. Community members and school officials said they know Aliu has hired a landscaping service to mow the lawns, but they haven’t spoken to him since the sale. Efforts to contact Aliu at a restaurant he owns in Oskaloosa, Iowa, were unsuccessful. Property tax records from the county put the net value of the
See VACANT, page A7
Photos by Rob Winner – rwinner@shawmedia.com
The old Cortland Elementary School building, seen here Wednesday, remains vacant.
About the sale n The Cortland Elementary School and Malta Elementary School buildings
were sold at auction to an Iowa businessman, Destan Aliu, in 2012. n Aliu paid $82,500 for the two school buildings. n Aliu has said he wants to turn at least one into a banquet facility. n Aliu has hired a landscaping service to mow the lawns, officials say they haven’t spoken to him since the sale. n Property tax records from the county put the net value of the Cortland property at $45,404 and the Malta property at $28,652.
Voice your opinion What would you put in an old elementary school? Vote online at Daily-Chronicle.com.
See OBAMA, page A7
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