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City Council approves economic development annexation, major sewer infrastructure project

By Lindsay Romano Feb 18, 2025 | 6:16 PM

February 18, 2025 -The Decatur City Council approved an annexation agreement that will support economic development north of I-72, and approval of a major sewer infrastructure project to reduce wet weather basement backups.

The Decatur City Council approved an agreement with McLeod Properties, LLC to annex two parcels, generally located north of I-72 and west of Rt. 48, into the City of Decatur. This move allows the City to continue preparing a prime economic development location that has interest for new development.

The two parcels are adjacent to the McLeod trucking business and north of that is an area the City is preparing for economic development. The City was recently awarded a $3 million Site Readiness grant from the Illinois Department of Commerce & Economic Opportunity, which will fund the construction of water infrastructure to this area. Along with water available sewer infrastructure, the proximity to I-72 and a nearby Ameren power substation make this a desirable location 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. This is a savings for the company that also supports future economic development opportunities at the same time.

Council also approved a major sewer infrastructure project that will provide relief to residents experiencing wet weather basement backups in the Oakland/Grand area. The area is served by a combined sanitary and storm sewer which results in frequent wet weather basement backups in residences during storm events. This $9.73-million project would separate the combined sewer with the construction of a new sewer pipe.

The City will now apply for a low-interest loan from the Illinois Environmental Protection Agency’s Water Pollution Control Program. The loan interest rate is expected to be 1.87 percent and payable over a 20 or 30-year period. It will be paid back using the City’s Sewer Fund. The approved contractor is Decatur-based Entler Excavating, which was the lowest bidder for the project. Their bid came in 12.9 percent lower than the City Engineer’s estimate.

If the loan is approved by the IL EPA, construction is estimated to begin in April 2025 and be completed in October 2026.