The Effingham City Council recently discussed the preliminary draft agreement with Square Southtown to revitalize Village Square Mall.
City Attorney Tracy Willenborg emphasized that the agreement is only a draft, and it is subject to the lifting of any stays in the court system.
The agreement is for the city to pay $2 million to Square Southtown with TIF funds, which will be used for improvements such as the western facade and parking lot. The Square Southtown team – Michael Brummer, Scott Kabbes and Karen Etter – will also invest funds.
The contract also states that the Square Southtown team will create a pickleball area and have at least three tenants within the first three years. If these criteria are not met within three years, they will owe the city $500,000.
Willenborg is in touch with Square Southtown’s attorney, Daniel Hamilton, to make the language more specific for topics such as minimum square footage for tenants, the occupancy during the first three years, the Rural King area and the Jubilee Food area.
“Arguably, with the languages being provided, you could have a tenant in a broom closet or a small area, and so there could be compliance with two, three tenants in 500 square feet, and I don’t know that that’s your goal because we’re taking out the minimum square footage [from the contract],” said Willenborg. “This is contract language, an attorney saying, ‘Hey, typically, we have more detailed specifics for the parties.”
She also reminded the council that there may be a different council during the span of the contract, so it’s best to have a clear understanding of it.
City Administrator Steve Miller thinks they need an updated project plan and concept to make the agreement clearer.
“Getting all the wording correct is important because when someone picks it up three years from now, we want to make sure that the way they read it is the intent of the agreement,” said Miller.
Mayor Mike Schutzbach agreed with Willenborg and Miller.
“If our attorney is advising us this, I think we should probably take great note into it,” said Schutzbach. “I just want to make sure that the citizens are protected with their investment.”
On the other hand, City Commissioner Hank Stephens believes the minimum square footage clarification is unnecessary because he believes the Square Southtown team will be highly motivated to get as many tenants in as possible.
“If they haven’t gotten some minimum number of square footage leased in three years, they’ve got problems bigger than the (repayment),” said Stephens. “The developers have every reason to get this thing redeveloped as soon as possible.”
City Commissioners Larry Micenheimer and Libby Moeller agreed with Stephens.
After much discussion and advice given by Willenborg, the agreement will be revised to make the wording clearer. The city does not expect to take action until after the court case is settled.
In other news, Public Works Director Jeremy Heuerman announced the extension of Santa Maria Avenue from Fourth Street to Maple Street, which will include sidewalks, a bike trail, street lights, curbs, gutters, storm sewers, a pond and a walking trail. Feutz Contractors will be completing the project since they offered the lowest bid of about $4.7 million. The money will come from TIF and general funds.
Fire Chief Brant Yochum introduced Blake Poe, the newest, full-time firefighter. Before this, he was an on-call firefighter for 20 years and a mechanic. His wife, Dana, and their three kids are his biggest supporters, he said.
“I think this is a huge accomplishment for him, and we’re all very proud of it and very excited,” said Yochum.
Yochum also introduced two new 2nd Lieutenants Jake Burrell and Chad Berg – who used to be paid, on-call firefighters.
Burrell had been a volunteer firefighter with Teutopolis for 23 years, and he’s been with the Effingham Fire Department for four years. His dad worked with the fire departments, and they worked three years together.
Berg has worked six years for the Shumway Fire Department and 13 years with the Effingham Fire Department. Along with being a firefighter, he is also an EMT, a fire investigator and a hazmat technician. He’s been part of the city’s dive team for 17 years, as well.
“This is the only thing I’ve ever wanted to do,” said Berg. “It’s the greatest job in the world.”
In September 2019, the city was awarded $300,000 – now $481,053 due to inflation – to upgrade the Amtrak pedestrian crossing. Heuerman hopes the upgrades will happen this year.
“Once we get that upgraded to meet quiet zone requirements, hopefully, we can continue them all the way through the south end of town,” said Heuerman.
Miller announced that both Unit 40 and Unit 50 schools have agreed to let people use their facilities in the event of an emergency.
Then, City Planner Greg Koester informed the council that on May 15, there will be a special City Council, Zoning Board of Appeals and Plan Commission meeting for the city’s comprehensive plan. It will be an open house format with multiple stations set up.
The next Effingham City Council meeting is scheduled for May 20 at 5 p.m. in the City Council Chambers.