DECATUR, Ill. (WCIA) — The Decatur City Council approved an annexation of land and a major sewer infrastructure project at its meeting Tuesday evening.

The Decatur City Council has acquired two parcels of land from McLeod Properties, LLC to add into the city. The new property is north of I-72 and west of Rt. 48.

City leaders say it should be an easy target for economic development due to the location being close to the interstate and an Ameren power substation. The state recently awarded Decatur a $3 million Site Readiness grant to help with construction of water infrastructure in the area.

For the annexed land, the City will cap permit fees for a warehouse for McLeod on Mound Street at $50,000. Officials say this will stimulate economic development for the company while also saving money.

The council also voted to approve a sewer separation project to help prevent basement backups during storms around the Oakland/Grand neighborhood. The City will spend $9.73 million for the new sewer pipe.

The next step for the project is to apply for a low-interest loan from the Illinois Environmental Protection Agency’s Water Pollution Control Program. The City would pay back the loan over 20 or 30 years with the city’s Sewer Fund.

Entler Excavating in Decatur is the contractor for the project. If the City has the loan approved by the IL EPA, construction is expected to begin in April and finish around Fall 2026.