Effingham considers requests to expand enterprise zone boundaries

Sep. 7—EFFINGHAM — The Effingham/Effingham County Enterprise Zone Board's efforts to encourage development in the area, particularly residential development, are proving to be somewhat successful as the city considers multiple requests to annex property into the boundaries of the zone.

During an Effingham City Council meeting Tuesday, Economic Development Specialist Sasha Althoff discussed requests for the annexation of four properties into the zone.

"The Effingham/Effingham County Enterprise Zone Board recently received an annexation application from Todd Kabbes to annex three properties into the enterprise zone for the purpose of residential development," Althoff said.

Althoff told the council Kabbes met the annexation application's requirement to build five or more single-family homes and to begin construction within the next two years.

The three properties Kabbes would like to see added to the enterprise zone include a 43.8-acre property near East Evergreen, a 90.8-acre property along Route 40 and a 268.8-acre property near Illinois Route 33.

According to Althoff, the estimated cost for the initial development of these properties is $3.15 million.

"As we face a housing affordability crisis across the country, these incentives are a real means of reducing the cost of housing for homeowners," Kabbes said.

Effingham Enterprise Zone incentives include five-year property tax abatement on the increase to the base amount of a newly constructed single-family home located within the Enterprise Zone. Additionally, all newly constructed single-family homes located within the boundary with a cost of $50,000 or more, will be eligible for a sales tax exemption on all permanently affixed building materials.

"There's been a lack of building site options available, especially within the city of Effingham," Kabbes said. "We need more options to support the job creation that we all hope is coming to the area over the next couple of years."

Effingham City Commissioner Larry Micenheimer commented on Kabbes efforts to bring more housing to the area.

"In a lot of ways, it's like a dream come true for the city," Micenheimer said.

The request to annex the fourth property came from South Central FS Inc. a couple weeks after Kabbes made his request, and the Effingham/Effingham County Enterprise Zone Board is planning to combine the applications instead of submitting them to the state and other government entities within the zone separately.

Althoff said the 1.14-acre property South Central FS Inc. is asking to annex is located at 420 South Willow Street in Effingham, where the company plans to construct a 17,000-square-foot building that its representative, Brandon Laue, said will have a similar style as the surrounding buildings.

"We are proposing to build a farm store and warehouse just south of our current property," Laue said.

Althoff said South Central FS Inc. has met all the requirements necessary to apply for annexation, which include a workforce expansion of at least five employees.

The council is expected to vote on the matter during its next regular meeting.

In other matters, the council unanimously approved a proposal from the lowest bidder, A&R Mechanical, in the amount of about $2.5 million for the extension of Thies Avenue and improvements to Airport Road.

"The city and the county went together and applied for a few different grants for this project, and that's the primary way it's funded," Effingham City Engineer Luke Thoele said.

According to Thoele, the city received approximately $2.25 million in grant funds to help cover the cost of the project.

The city will pay for the remaining cost of the project with its general and sewer funds as well as $50,000 in the city's motor fuel tax funds. Thoele said the city is also requesting an additional $300,000 from the Illinois Department of Transportation (IDOT).

However, he said the cost of the project is "higher than expected" and "significantly over budget."

"Even with that, we're over enough that we will be looking to remove some of the work," Thoele said.

Also during the meeting, the council discussed a request from Effingham Mini Golf for a $1,000 reimbursement upon the completion of curbing around the holes on the course.

Effingham Tourism Director Jodi Thoele said the new ownership has already invested funds into the improvement of the property, including the installation of a new metal roof.

"Evergreen Mini Golf this past year changed to Effingham Mini Golf," Thoele said. "The group that now owns it, they've done a lot of work."

The council won't vote on the matter until its next meeting, but some members voiced their support for the reimbursement request.

"It's a really nice place for family activities," Micenheimer said. "They need to put some money in that, and it'll continue to grow if we can get some interest and generate some more revenue from it."

"I agree with Larry," Effingham Mayor Mike Schutzbach said. "It's nice to have."

In other matters, the council:

—Approved an ordinance authorizing the sale and/or disposal of city vehicles and old lockers.

—Adopted a resolution authorizing a supplemental agreement to the collective bargaining agreement between the FOP Labor Council and Fraternal Order of Police, Effingham Lodge 209 and the city for Effingham police officers to assist with Effingham Unit 40 security and mentoring.

—Adopted a resolution accepting public infrastructure improvements and releasing a right of way permit bond for Technology Drive near QuikTrip.

—Approved a certificate of completion and release of bonding for the 2022 Industrial TIF Water Main Replacement.

—Approved a certificate of completion and release of bonding for the 2022 Jefferson Avenue and Jefferson Street Reconstruction.

—Approved a certificate of completion and release of bonding for the 2023 Fayette Avenue Force Main.

—Approved change order No. 2 in the amount of -$3,839.30 for the Fayette Avenue Force Main.

—Approved a certificate of completion and release of bonding for the 2022 Heritage Avenue Extension Construction.

—Approved a bid tabulation for the Thies Avenue and Airport Road Improvement Project.

Nick Taylor can be reached at nick.taylor@effinghamdailynews.com or by phone at 618-510-9226 or 217-347-7151 ext. 300132.