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 City Council Again Discusses Square Southtown Project at Village Square Mall 

Published on May 6, 2025 7:52 pm
Last Updated on May 7, 2025 6:00 am

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Despite a pending court case, progress is being made between the City of Effingham and The Square Southtown on a development project at Village Square Mall.

City Attorney Tracy Willenborg said she expects to talk with the attorney for The Square Southtown Wednesday and feels things could be moving along. Getting the agreement in writing is a key, though.

The agreement is expected to include development by The Square Southtown of a pickleball complex and the locating of at least three tenants. The City would reimburse Square Southtown half the purchase price of the real estate, not to exceed $637,500. The City’s proposed financial package totals $2 million.

The development area would not include the former Jubilee Foods and Rural King areas. Also, Square Southtown would make interior and exterior improvements to the areas of the mall south of those areas.

Scott Kabbes of Square Southtown said he, Karen Etter and Michael Brummer plan to spend $8 to $10 million on the project.

The matter was on Tuesday’s agenda at Commissioner Hank Stephens’ request. He is in favor of the project as are Commissioners Libby Moeller and Larry Micenheimer. Mayor Mike Schutzbach said again Tuesday that he supports the project. He did say after the meeting that he continues to have concerns over the amount of the proposed financial package.

Also Tuesday, the Council voted to award a contract to extend Santa Maria Avenue from 4th Street to Maple Street. The almost $4.7 million project will include street, water and sewer service construction, and a pond and walking trail near the Workman Sports and Wellness Complex. Director of Public Works Jeremy Heuerman expects construction of the street to begin in July.

Also, the Council approved a new two-year contract with City Administrator Steve Miller for $156,600 this year with a 5% increase the second year. The Council also introduced Blake Poe as a new firefighter. Fire Chief Brant Yochum said it finally gets the fire force to full staffing. Also approved Tuesday was promotion of 2nd Lieutenant Paid on Call Firefighters Jake Burrell and Chad Berg.