City Council Acquires South End Parcel

The Effingham City Council Tuesday voted to authorize the purchase of a 153.6 acre tract of land on the south end of the city from the Hawickhorst Family Land Trust. The purchase price is $18,000 an acre, meaning a total cost of $2,764,800. 

The land is along South Route 45, north of John Boos and Company and south of J&R Collision Center. City Administrator Steve Miller acknowledged it's a lot of money, but once the City owns the property, he said they can push hard for development. 

Miller said the tract connects to rail and is along the highway, so it has a lot of attributes. 

The Council also voted to authorize the issuance of alternate revenue source bonds to finance the purchase, along with refinancing the bonds that are covering the debt of the Effingham Performance Center. The process of selling the bonds should be completed by the end of January, with the City saving about $100,000 in interest costs.

Council members also heard from Economic Development Director Todd Hull that the hearing went well regarding an expansion of the South Central Industrial TIF District. The expansion would involve land on the north end of the City Business Park, as well as property along South 4th Street.