$1.275 Million Bid Submitted for Village Square Mall

There could be a new owner of Village Square Mall in Effingham.

An entity known as Square Southtown LLC of Effingham submitted the highest qualified bid of $1,275,000 during an auction Monday morning at the Effingham County Government Center.

Entrepreneur Scott Kabbes is listed as the registered agent for Square Southtown LLC. Kabbes is a native of Effingham. Other managers are Karen Etter and Michael Brummer. 

The starting price was $1.2 million. The City of Effingham submitted a bid for that amount, but the bidding escalated from that point. 

The maximum bid was $1.9 million, but a qualification was that the winning bidder had to have on hand at least 10% of the bid. Both Durga Properties, the current mall owner, and LDI Properties submitted higher bids, but neither had the 10% on hand. City Attorney Tracy Willenborg conducted the auction and reminded bidders that the 10% requirement was in the information on file prior to the auction.

Kabbes said following the auction that he didn't want to comment on Square Southtown's plans for the mall until the transaction is finalized, but said his group does have "many plans" for the property.

As for Durga, their case with the City was in court as recently as Friday. The City has made repairs to the Mall and the bid submitted by the City was to make sure what the City is owed is collected by whoever purchased the property. The City has sought Durga to reimburse the City for the cost of the repairs. 

The theatre complex at the Mall is not included in the transaction as they are under separate ownership.

Willenborg at the auction shared that there are further repairs needed to the Mall that the purchaser will have to address as part of the transaction.