A $5.3 million water main project was greenlit this week to aid incoming development on DeKalb’s south side, including a 560-acre Edged data center approved in December.

The DeKalb City Council this week unanimously selected Elliott and Wood, a local contractor for residential, commercial and industrial jobs, to install a 3.8-mile extension of a 16-inch transmission water main for the portions of Illinois Route 23, Keslinger Road and East Gurler Road corridors.

“This is another piece to be able to further expand some more economic development on the south side of town, which, as we all know, generates property taxes and jobs,“ City Manager Bill Nicklas said.

Economic development on DeKalb’s south side has grown significantly over the years with the addition of major industrial users, including Meta, Amazon and Ferrara Candy Company. Once it comes online, the transmission water main will also serve the new Edged data center.

The city received six bids on the water main project, city documents show. The lowest bidder was Elliott and Wood, which submitted a $5 million project bid. The total project cost of $5.3 million includes a city contingency of $253,750, documents show.

The city intends to pay for the installation using money available in the city’s water fund reserve. Officials said this is a move in line with how the city approached paying for the south water tower.

Nicklas said the city has ruled out the use of a low-interest loan from the Illinois Environmental Protection Agency for the project.

“That low-interest loan program we were looking at was really primarily for rehabilitating existing mains and not adding some new length as well as serving some existing properties,” Nicklas said. “It’s going to be for new growth.”

“How will this affect our reserves?” 3rd Ward Alderman Tracy Smith asked of the city’s reserve fund.

Nicklas said in response that the water main work was planned for.

“I’m happy to say our reserve will still be around 50% of our annual expenditures as the reserve for all of the capital-related funds,” he said. “This is by planning and design.”