DECATUR - Members of the Decatur City Council grumbled about increasing costs to spruce up the roadway near Millikin University, but the council voted 6-1 to spend about $120,000 more on the project.

Councilman Dan Caulkins cast the sole "no" vote for the increased funding.

"At some point, you have to draw the line," Caulkins said. "We need to find a way to get this project back under control."

The Decatur City Council in March approved a nearly $2.3 million project to design and construct improvements on the West Main Street area near Millikin University.

Millikin University was awarded a $1.5 million federal grant to improve safety and aesthetics around the campus. The grant required a 20 percent match, and council members initially expected to contribute about $300,000 toward the effort.

But the city's share in March surged to about $753,000, due largely to requirements and modifications to the plan from the Illinois Department of Transportation.

On Monday, the council approved spending a total of $872,710 for its share of the construction.

Otto Baum Inc. in April provided the sole bid for the project at nearly $2.2 million, which was nearly $120,000 over the estimated cost.

The increased price tag for the project is due to rising costs for fuel, concrete, steel, rock and labor, said Richard Marley, director of engineering and infrastructure.

Councilwoman Betsy Stockard inquired about scaling back elements of the project to cut costs.

That's not an option, Marley said.

"At this point, it's a thumbs up or thumbs down decision," Marley said. "When we looked at the project and we looked for items to take out, the only items there are to take out are streetscape elements.

"If you take out streetscape elements, what's the point of doing the project? It comes down to that. We looked for areas of value engineering - the pavement, the storm sewers and every other part - and there's just no place to take out costs."

Several council members voiced disappointment about another round of increased costs.

"I'm hoping this is the end of it," Stockard said.

"I'm going to vote for this, but this one has left a terrible taste in my mouth," Councilman Shad Edwards said.

"I'm going to vote for this, but I wouldn't try this every other week," Councilman Michael Carrigan said.

Councilman Patrick Laegeler said he was disappointed by the increased costs, but he was surprised fellow council members didn't anticipate the costs to overrun earlier estimates.

"We should have gone into this with eyes wide open," Laegeler said.

Caulkins said the city's share has surged about to about three times what council members originally envisioned.

The council later approved borrowing up to $1.5 million to fund streetscape improvements on the 300 block of North Water Street as well as its share of the West Main Street project.

The council also approved changes to a plan to develop the Wabash Crossing neighborhood on the city's near north side.

The council on Monday approved plans for demolition work on the Ullrich Center to make room for a future town center.

The plan calls for building 90 living units in 30 buildings - 68 two-bedroom dwellings and 22 three-bedroom dwellings.

Developers earlier hoped to build new homes in the neighborhood, but those plans largely have been abandoned because of lack of interest from homebuyers.

Tom Smith, executive director of Decatur Housing Authority, said city-owned land still is available south of the current development if a market develops for new homes.

Council members expressed disappointment that plans largely have failed to establish homeowners in the new neighborhood.

"The whole idea behind Hope VI itself was to intermingle residential owners with others from low to moderate income so it didn't have a housing project feel," Edwards said.

Stockard added, "People are not moving in there because they're afraid we're going to revert back to (housing) projects."

Mike Frazier can be reached at mfrazier@herald-review.com or 421-7985.