Decatur City Council approves annexation, and $9.73 million sewer infrastructure project

DECATUR, Ill. (WAND) - On Tuesday night, the Decatur City Council approved an agreement to annex two parcels north of I-72 and west of Route 48 into the city, allowing Decatur to advance a key area for new economic development.

The city received a $3 million site readiness grant from the Illinois Department of Commerce and Economic Opportunity to build water infrastructure. With existing water and sewer systems, plus proximity to I-72 and an Ameren power substation, this area is ideal for future economic development.

In exchange for the annexation approval, the City will cap permit fees for a new McLeod warehouse being constructed on E Mound Road at $50,000.

The Council also approved a $9.73 million sewer project to address basement backups during storms in the Oakland/Grand area. The current combined sanitary and storm sewer system often causes flooding, and the new project will separate these systems by installing a new sewer pipe.

The City plans to apply for a low-interest loan from the Illinois Environmental Protection Agency’s Water Pollution Control Program. The loan is expected to have an interest rate of 1.87 percent, which will be payable over a period of 20 or 30 years. The repayment will be funded by the City’s Sewer Fund.

The approved contractor for the project is Entler Excavating, based in Decatur, which submitted the lowest bid. Their bid was 12.9 percent lower than the City Engineer’s estimate.

If the loan is approved by the Illinois EPA, construction is anticipated to start in April 2025 and be completed by October 2026.