Ottawa takes next step on $29 million wastewater treatment plant

Ottawa continues to move forward with plans for a new wastewater treatment plant, a major infrastructure project aimed at addressing capacity concerns and supporting future growth.

The new plant is estimated to cost $29 million and will be financed through a 30-year loan. The city has already secured a $7.7 million state loan to support the project.

Officials say the facility will serve as a second wastewater treatment plant, supplementing the city’s existing system and helping to meet regulatory requirements while paving the way for development.

Ottawa’s current plant is aging and operating near capacity, and city officials say the expansion is essential to avoid bottlenecks that could limit economic growth.

At Tuesday night’s meeting, Ottawa City Council approved a change to its engineering agreement with Fehr Graham, the firm leading the project’s design and planning.

While not classified as a “megaproject,” the wastewater plant is among the most significant local infrastructure investments in recent years.

Looking ahead, Mayor Robb Hasty said design work is expected to be completed by October 2025, with permitting through the Illinois Environmental Protection Agency anticipated by early January 2026.

The city plans to open the project for bidding in February 2026, with final completion targeted for May 2030.

Also, the city is pursuing a loan with an interest rate around 1%, which includes a 10% principal forgiveness provision.