DeKALB | DeKalb City Council voted last week to purchase five parcels of land, with the primary piece at the corner of Locust and First streets.

City council also voted to finance the purchase by issuing $1 million in bond anticipation notes to the Northern Trust Co.

The land will be a substantial gain for the city and the deal is expected to close within the next 60 days, according to DeKalb’s assistant city manager Linda Wiggins.

“I think it shows the council’s commitment to renovating the area,” Wiggins said.

Rather than attempt to rehabilitate the buildings, a mix of residential and commercial, the city will wait until leases with the current tenants expire, and then demolish the structures. All of the leases will be up within one year.

“They have just reached functional obsolescence,” Wiggins said. “There are environmental issues on the commercial properties that we have to take care of.”

The city expects to have more than $300,000 of the loan left after purchasing the Miller property, but it is uncertain how much will need to be spent tearing down the buildings and addressing maintenance issues.

The ordinance authorizing the loan suggests that some funds may be used for other land purchases, but Wiggins said the city is not currently eyeing any other specific properties.

Businesses such as the Magic Door, SPA INC. and Richoz-Sullivan Real Estate are currently located in the building at Locust and First streets. While the city will not be forcing out any businesses before leases expire, the idea of a move still makes at least one owner nervous.

“We love our location,” said Arch Richoz, of Richoz-Sullivan Real Estate.

Richoz has been in the building for 12 years. He does not expect to lose customers over the course of the move, but he worries about business being interrupted.

“It’s not just moving; there are lots of changes that go along with it,” he said.

Since last week’s meeting, he said he has received numerous phone calls about possible new locations but has not settled on any yet.

“Everything is up in the air,” Richoz said.