City and Mall Owner Reach Agreement on Renovation Plan

The City of Effingham and Durga Property Holdings, Incorporated, the owner of Village Square Mall, Friday reached an agreement for renovations to the mall property.

Effingham City Attorney Tracy Willenborg said the City has been diligent to reach an agreement to get the mall put back into compliance. Willenborg particularly mentioned Assistant Fire Chief Matt Kulesza, Building Official Michelle Lilley, and Plumbing and Electrical Inspector Chris Niemerg for their work to help craft the agreement. The owner of Cincinnati-based Durga Property Holdings was in Effingham for the conclusion of negotiations Friday morning and at Friday's hearing before Judge James Eder.

Willenborg said the agreement is "amazing for the City, the public and the mall." She said the agreement details the work that must be done, including start and end dates for the projects, and a lien is included valued at $44,000 that will cover attorney fees and court costs.

The agreement includes work on the former Rural King loading dock area, the JC Penney Suite Roof and Parapet Wall, the JC Penney Suite Interior Cleanup and Reconstruction, the Rural King Front Walk Canopy, the replacement of the Village Square Mall Exterior Horn Strobes, the Village Square Mall South Public Restrooms, the Village Square Mall North Public Restrooms, the JC Penney Storage Area, and Miscellaneous Areas Within the Interior of the Premises.

The agreement also stipulates that, should Durga Property Holdings fail to strictly comply with the terms of the Order, the City is authorized to perform the work.