City Council Votes to Sell Site for New Hotel

Effingham city council members Tuesday approved the sale of two acres of property to McHugh Hospitality Group as the site for a new hotel.

The property is located at the corner of Avenue of Mid America and North Raney Street. The two-acre tract was sold for $775,495. John McHugh said he plans to have the extended stay mid-range hotel completed by 2024. 

The Council released the bond for fire sprinkler system modification work at Village Square Mall. The nuisance remediation work cost  $22,875. The City will now seek payment for the work from the mall owner. 

Council members approved the replat of one lot into two lots at S & K Subdivision east of South Banker Street at Professional Park Avenue, and the replat of one lot into two lots at Lohman Subdivision, northwest of Effingham along 1200th Street.

The Council also approved special use permits for property along Illinois Routes 32/33 at Nazarene Road. Part of the property will be used for an auto sales facility and part will be developed with miniwarehouses.

Council members discussed a service agreement with Civicserve for a reporting and management system, discussed whether interest earned on four bond issues generated enough revenue to make the bond payments for this year, and discussed three options for the coming fiscal year's tax levy.