City Council Adopts Northside Business District Plan

Effingham City Council members Tuesday adopted a business district plan including the area north of the interstate stretching from the Buffalo Wild Wings complex east to North 4th Street.

The Interstate North Business District is expected to include a 1,000-foot easterly extension of Ford Avenue and development of retail businesses along that route. The City has also requested grant funds that would allow a further easterly extension of Ford to 4th Street.

The project would also involve imposition of a 1% special service tax on businesses developed in the district. 

Economic Development Director Todd Hull said the documentation will now be sent to the State. The hope is that the district will go into operation on January 1, 2021.

The Council voted to accept a proposal from AKRA Builders for repairs at Village Square Mall. AKRA was one of three firms that submitted proposals.

A court ruling from early this year allows the City to hire a firm to do the repair work, which will include enclosing the fire suppression system. That should protect the system from the atmosphere in hopes of preventing the weather from affecting the system.

Another hearing is set for this Friday as to whether the City will retain the authority to move ahead with the work. The current owner of the mall has indicated interest in getting repairs made, but some disagreement over the scope of the work has led the owner to seek a change and take away the City's authority to hire the work done with the mall owner paying for it.

City Attorney Tracy Willenborg said the City will not go ahead with the work before they know the outcome of Friday's hearing.

Council members accepted a proposal from Civil Design for GIS database and online mapping work for the fiscal year for just over $24,000, and approved a replat of a lot at Raney Street and Commerce Avenue from one lot into two lots. 

The Council discussed an economic development incentive for Effingham Railroad in the city business park. The development is in both a TIF District and the Enterprise Zone and can't receive both incentives. The proposal discussed by the Council was to have the railroad pay the property tax bill for the development with the City then reimbursing the railroad that amount, a total of $75,075. That's $10,725 per year for the seven years remaining on the incentive.

Council members awarded a sidewalk replacement project for the fiscal year for just more than $121,000, and awarded a street resurfacing project for Oak Street from Edgar Avenue to Fayette Avenue and Edgar Avenue from Henrietta Street to Maple Street for just more than $117,000.