Majority of Council Show Support for Funding for Square Southtown

A majority of the Effingham City Council voiced support Tuesday for contributing toward a project to renovate the Village Square Mall. Any vote by the Council on the matter, though, will await a decision by the 5th District Appellate Court on the sale of the mall to the proposed developers.

While Commissioners Hank Stephens, Larry Micenheimer and Merv Gillenwater said they would support contributing City funds toward the project, Mayor Mike Schutzbach said he was opposed to the financial proposal, although he said he was in favor of the project. City Commissioner Libby Moeller was not present for Tuesday's meeting, but has indicated support for the project previously.

City Administrator Steve Miller said the proposal would involve the City contributing $2 million in Tax Increment Financing district funds. The money would not be awarded in a lump sum.

The Square Southtown partners Scott Kabbes, Karen Etter and Michael Brummer have pledged to land three tenants for the mall within 36 months of closing, as well as deveopment of what is to be known as the Picklebox, an outdoor/indoor complex that will utilize the south end of the mall.

Schutzbach said the City has already invested $1.2 million on the mall to address structural problems. Kabbes responded, "We are going to write a check that will pay it back." He also reminded that the money spent by the City earlier was to make structural repairs for another owner and that work was not for their benefit.

Stephens said of the project, "This is a classic use of TIF. This will improve the tax value, and help the Mall and the southtown area." Schutzbach contended that "residents would like us to spend tax dollars wisely. I feel this ask may be too large."

Once again, there was no vote on the project Tuesday; a vote will await a decision by the Appellate Court. There's no word on when the Court will rule.

There was also discussion of whether Effingham's guidelines for construction are too stringent. Local businessman Mark Mayhood said he has checked with other downstate communities and said Effingham's regulations are the most restrictive.

City officials responded that local guidelines comply with state regulations, although steps are taken where possible to lessen those regulations.

Stephens said he has heard that Effingham's regulations are too stringent for years. He said, "This is something we need to get our arms around." He added, "Have we made it harder to build inside the city limits than just outside the city limits?"

City Planner Greg Koester reminded that this week's Effingham 2050 Comprehensive Plan gathering will address housing. The gathering, open to all, will begin at 5:30pm Thursday at City Hall.

Also Tuesday, the Council amended the city's golf cart ordinance, allowing a crossing on Willow Street at Grove Avenue. Gillenwater voted No on adding the crossing and Stephens said he has concerns about crossing on such a busy street especially with the high volume of traffic and the number of trucks using Willow, but said he would "hold his nose and vote Yes" since there isn't any other way to get in and out of Homewood Subdivision with a golf cart. Micenheimer and Schutzbach voted Yes.

The Council discussed amending the boundaries of the Central TIF District to allow two apartment buildings to be built along 3rd Street with a vote on the matter expected at the next Council meeting. 17 apartment units would be created in the two buildings. There was also informal agreement on making the intersection of Market Avenue and 2nd Street by East Side School a four-way stop intersection.