NEWS & ANNOUNCEMENTS

Development Group Considers Other Effingham Sites for Shopping Center

Date Released: 9/20/07

A Chicago-based company considering purchasing property on the west side of Effingham for the site of a 500,000-square-foot shopping complex has determined it is not economically feasible to build the project on the site. However, the developer is considering other sites in Effingham.

Representatives of DB Development of Chicago told City officials the company is no longer considering building a shopping center on property currently owned by the City, Effingham Unit 40 School District and WKK Development Group. According to the company, it is not economically feasible to develop the site due to development costs and current retail market conditions for national retailers.

Although DB Development is no longer considering the site, company officials did say they are reviewing other sites in Effingham.

The site that was being considered is 45.5 acres of property located west of Effingham High School, north of U.S. 40, east of the interstate and south of the frontage road off of Fayette Avenue.

Action taken last year by the Effingham City Council had given the company an option to purchase the property. According to the option agreement, the City would have purchased the school district’s 25 acres for $70,000 an acre, then sold the 25 acres and the City’s 10 acres to DB Development for $70,000 an acre.

The purpose of the option was to allow the developer to secure the site while analyzing the feasibility of the project at the location, and as a result of the developer’s analysis of the property, it was determined the project would not be economically feasible at the location at this time.

Although the shopping center will not locate on the 45.5-acre site, Mayor John Lange said the City is not out of the running and City officials will continue to work with the DB Development on the project.

“They are very determined,” said Lange about the developer. “We will continue to work with them as they consider other sites to locate this shopping center."

“The City recognizes the importance of such retail shopping and the benefits it would bring to the area, so it will remain a top priority for the City to bring shopping to the area,” he added.