Streator councilmen Thursday put their stamp of approval on a $13.4 million loan for the major Kent Street interceptor sewer project, as well as other construction projects such as installing stoplights at Main and Otter Creek streets because of the high number of accidents recorded.

The Streator City Council met in special session Thursday to discuss the Kent Street interceptor sewer project, improvements to the corner of South Otter Creek Road from Main Street south to 12th Street and the construction of a parking lot at 138 S. Bloomington St.

The council approved a $13,445,347 loan agreement with the Illinois Environmental Protection Agency for the Kent Street interceptor sewer project. The loan is for 20 years at zero interest as part of the federal stimulus package.

"In effect this is a formal acceptance and agreement with the EPA," said Paul Nicholson, city manager. "Once it was approved by the EPA and the city accepts it, the city can award the contract."

According to Jeremy Palm, city engineer, the EPA will issue monthly checks to the city and the city will then issue checks to D Construction of Coal City, the contractor awarded the job Thursday.

The multi-year project entails replacing the 88-year-old combined sewer systems and separating the individual sanitary and storm water piping systems.

The council also moved forward on the South Otter Creek Road rehabilitation project, entering into an agreement with the Illinois Department of Transportation, which will supply $24,000 for the project with matching city funds of $6,000.

The city will install stoplights at Main and Otter Creek streets. Because there have been 18 accidents at the intersection in the last five years, IDOTrequirements warrant the installation of the lights. During the day, the lights will be activated by a time signal. In the evenings they can be actuated. In addition, the project will include new curb and gutter, pavement and a storm sewer.

Palm said the project will begin in 2010 or 2011. Federal funding for the $1.4 million project will be available as long as the project is started by 2012.

The council awarded a contract to U.C. Paving of La Salle for $62,590 to pave the lot at 138 S. Bloomington St. and turn it into a parking lot. The project will include pavement of the public alley to the north of The Times building. The project is expected to begin this fall.

The funding for this project will come from tax increment financing funds, according to Nicholson.