$5 million state grant to help buy land for industrial ‘megasite’ in metro-east
America’s Central Port in Granite City has been awarded a $5 million state grant to help it buy 350 acres of metro-east farmland that could become a rail-served industrial “megasite.”
The term “rail-served” is key, according to Dennis Wilmsmeyer, executive director of the port, a special governmental unit that operates a logistics hub along the Mississippi River and promotes economic development throughout southwestern Illinois.
Wilmsmeyer said St. Louis and the metro-east are “deficient” in the number of large parcels of available land with on-site or nearby access to railroads for product shipping, and that’s what some manufacturers need to build plants that create high-paying jobs.
“The St. Louis region used to be the No. 1 rail center in the country back 100-plus years ago, and we’ve been bypassed and left behind (in manufacturing) because we kind of turned our back on rail,” he said.
Wilmsmeyer characterized the grant as an opportunity for the region to regain some of its lost ground. He declined to give the exact location or other details about the farmland due to ongoing negotiations but confirmed that all 350 acres are owned by one entity.
The land could be made available for construction of manufacturing or logistics facilities with railroad tracks built to connect them to a nearby mainline, or it could be used for a rail hub.
“The great thing about southwestern Illinois and our St. Louis regional area is that we’re one of a very few places in the country where all six Class I rail carriers come together,” Wilsmeyer said.
America’s Central Port applied for the grant from the Illinois Department of Commerce and Economic Opportunity through its Regional Site Readiness Program.
The award was announced this week by state Rep. Jay Hoffman, D-Swansea, for the 113th District in a press release.
“Our community is a uniquely positioned transportation hub, and investments like this will aid operations and ensure America’s Central Port can successfully handle demanding freight networks,” he stated in the release.
“This investment is going to strengthen our region, further support jobs and generate additional economic benefits for years to come.”
News of the grant was welcomed by Mary Lamie, vice president of multimodal enterprise for Bi-State Development, who also oversees the agency’s Gateway Arch Riverboat, St. Louis Downtown Airport in Cahokia Heights and St. Louis Regional Freightway.
Lamie said they regularly get calls from manufacturing and logistics site selectors and brokers looking for parcels that are several hundred acres and accessible to different modes of transportation.
Frieghtway’s website lists 20 development-ready properties with “rail potential” in the region. Six consist of more than 200 acres.
Steve Zuber, a real estate broker and principal with BarberMurphy Group, based in Shiloh, said it’s a challenge to find land along the Mississippi River industrial corridor for companies to buy or even lease for storing or cleaning rail cars or transferring freight between different transportation modes.
“There’s just a variety of businesses that need the rail-served sites,” he said. “I’m probably engaged in five site searches right now.”
For years, Freightway has led a campaign to make the St. Louis region a “freight epicenter” with its interstate highways, railroads, public barge ports, private river terminals, regional and cargo airports and industrial, business and product-distribution parks.
The new America’s Central Port site would be “unique and valuable” because of its 350 acres and proximity not only to rail lines but also to Interstates 270 and 255 and the Mississippi River, according to Lamie.
“This is planning for the future and making sure that we’re going to continue to be able to attract more business to our area,” she said.
The port covers 1,200 acres with 29 miles of railroad tracks connected to its “intermodal harbor.” It formerly served as a U.S. Army base known as the Charles Melvin Price Support Center.
The port board is expected to vote Monday night on whether to enter into an agreement with the Illinois Department of Commerce and Economic Opportunity and accept the $5 million grant before moving ahead with the purchase of the farmland.
The six Class I freight railroads in the St. Louis region include BNSF Railway Co., Canadian National Railway Co., CSX Corp., Kansas City Southern, Norfolk Southern Corp. and Union Pacific Railroad.
