DECATUR - The Decatur City Council on Monday approved extending a $1.4 million line of credit to demolish old buildings on the west side of the 300 block of North Water Street.

Reynolds Development LLC is building a 75,000-square foot structure on the east side of the 300 block of North Water Street, and city leaders agreed to acquire properties on the west side of the block to demolish or rehabilitate.

Anchor tenants Consociate/Dansig and Regions Bank are expected to move into the facility by August. The structure also will provide 15,000 square feet of space for retail, restaurant and commercial outlets.

Chicago-based National Wrecking Co. submitted a bid of $1.3 million for the demolition work.

A landscaped courtyard will be constructed between Main and Water streets. A pedestrian walkway will also be built, connecting a nearby city parking garage to the upper stories of structures on the west side of the 300 block of North Water Street.

In other business, the council approved reimbursing Millikin University up to $24,000 to move two large masonry signs, which will be relocated for a project to improve the streetscape near the campus.

The city recently completed a $2.7 million project to refurbish the West Main streetscape, and city leaders plan to extend the work from Oakland Avenue to Fairview Avenue.

John Phillips, owner of the BP station at 1096 W. Main St., told the council on Monday that he is "making a fortune" on tire repairs as motorists bump into islands staggered along the new roadway.

The islands recently wreaked havoc for a city snowplow, Phillips said.

"Leave them there, I love them," Phillips said, to chuckles from council members. "But it is costing the city significant money to scrape and clean that street in its current condition."

The council also postponed a discussion of whether to reimburse Councilman Dan Caulkins more than $2,700 for legal bills he incurred to ensure that he could participate in a recent council debate about health insurance.

Consociate Inc., the former administrator of city's health plan, filed a defamation lawsuit last year against Macon County Shared Vision for comments posted on the citizen group's Web site.

Caulkins said the group's attorney challenged his ability to participate in a debate on health insurance because of his involvement with the Shared Vision group.

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