02/18/2026
We would like to outline our path forward for Village Square Mall amid the ongoing legal delays.
As previously noted, Square Southtown prevailed at a foreclosure auction on November 4, 2024, to purchase the Village Square Mall, with the intent of revitalizing the long-deteriorating property and reinvesting in Effingham’s south side.
Although the judicial confirmation of sale is not under appeal, the transaction has been unable to close due to a tangential stay currently pending before the appellate court. That appeal has now been ongoing for more than 15 months, with no clear indication of when a ruling may occur. As a result, Square Southtown must now confront the reality that, without intervention, the project may never move forward.
This situation leaves us with two clear choices. We could walk away and allow the property to remain in the hands of the current owner, where deterioration would likely continue. Or we could remain committed, even in uncertainty, and create a responsible path forward for the community.
Square Southtown has chosen the latter. Rather than abandoning the transaction, Square Southtown has proposed a put option agreement with the City of Effingham designed to protect the community’s interests while the legal process plays out. Under this approach:
- Square Southtown will not walk away from the transaction.
The company will leave its $130,000 deposit in escrow and maintain its contractual interest until the appellate court issues a ruling.
-If the court rules in favor of the City, Square Southtown would close immediately on the transaction.
-Following closing, Square Southtown would evaluate whether the originally planned redevelopment remains financially feasible.
-If the project is no longer feasible, Square Southtown would sell the property for an amount sufficient to cover the purchase price and certain administrative expenses—ensuring the property is no longer owned by the current owner and that the City’s $1.19 million lien is satisfied.
This proposal is about doing what is right for Effingham. If we are unable to see our full redevelopment vision come to fruition, that will be deeply disappointing. But we will know our efforts were not in vain if this allows the City to finally take meaningful steps to renovate and revitalize this long-neglected area.
Our goal has always been to support the community, stabilize the Village Square Mall property, and contribute to the long-term health of Effingham’s south side.
