Economic Development

Herculaneum is in a period of transition. Currently, the McNutt Road corridor is a strip of two-lane road connecting the exit off of Interstate 55 to Highway 61/67. The area has commercial sectors near the I-55/McNutt Rd exit and intersection of McNutt Rd and Highway 61/67, but the road itself needs to be widened and straightened in order to facilitate better traffic flow and visibility between the two sectors. The Missouri Department of Transportation has budgeted $4 million for the expansion and improvement of McNutt Road, but this money must be used by May of 2012. The City recently passed a half-cent increase in sales tax that, in combination with an existing Community Improvement District (CID) in the area, and is expected to generate approximately $600,000 annually that would be used for the project. Also, the City has applied for TIGER (Transportation Investment Generating Economic Recovery) grant money that could become available in order to help the City pay back their portion of the project. This all adds up to a City that is aggressively pursuing infrastructure improvements in order to bolster economic development in a region with vast commercial potential.

The McNutt corridor would be widened to six lanes and a turn lane near the I-55 overpass and to four lanes leading to Highway 61/67. This would create a commercial sector prime for development from the interstate to Highway 61/67. As of now, McNutt Road has an annual average daily traffic (AADT) count of 18,362, but this number is stifled from congestion problems and lack of accessibility due to the road’s limited capacity. With the expansion of the road and the addition of more lanes, it is expected that this number will increase significantly. Near McNutt Road Interstate 55 has an AADT count of 57,752, and Highway 61/67 has a count of 10,809. After the improvements to the corridor, it is expected that Highway 61/67 will see an increase in AADT as well, resulting in a prime area of development for the city. As of now there is commercial development near the I-55 exit and near the McNutt Rd Highway 61/67 intersection. Besides just adding lanes to McNutt Road, the City plans to flatten out the road through the corridor. This will additionally help with traffic flow problems, but also allow for visibility between the two sectors of commercial development. With an increase in the already high traffic counts in the area and the creation of a visibly vibrant area, the sector is poised to become a prime commercial destination for development.

Throughout this area there are many sites that have been identified as prime land for development (see Developmental Sites). These are areas that have undeveloped land near Interstate 55, McNutt Road, or Highway 61/67. With the improvements to McNutt Road about to commence, these areas have been selected as ideal sites for development due to their potential to capture some of the increased traffic flow that will come with the improved infrastructure in place. There is a range of possibilities for new development, with some of the sites located near residential developments and others within commercial sectors. Several of the sites are in a Tax Increment Financing District, which would allow the City to offer incentives to developers on those properties.

Another reason for the City’s urgency to improve its infrastructure is to accommodate possible new developments near its industrial sector on the Mississippi River. Currently the Doe Run Company, who operates a factory on the property, owns most of the land in the area. Within the next several years Doe Run will be closing its lead smelting division at its Herculaneum location, and with that will open opportunities for other developments at the site. One possibility is Doe Run opening a lead processing facility where the smelting division currently resides. Jefferson County Port Authority has also been looking into the Herculaneum site as a potential location for a new port on the Mississippi River. Several studies have been conducted relating to the feasibility of the site for a port and also redevelopment plans for the Doe Run property. There are several different plans for the site, but all of them include new developments in commercial and light industrial space in the area along with the plans for the port. To accommodate future developments at the site the city has constructed a new bridge across the Joachim Creek that will divert heavy traffic away from the city center. This, combined with the planned improvements to the McNutt St corridor, will allow for streamlined access from Interstate 55 and Highway 61/67 to the riverside properties.

As mentioned previously, the City of Herculaneum is in a period of transition. The improvements to a major commercial and industrial sector of the City are only part of the reason for the transition. The other is the growth the city is experiencing already. Between 2000 and 2010, the population of Herculaneum is estimated to have grown by 25.5%, and is projected to grow another 7.0% within the next five years. The number of households is estimated to increase 33.8% between 2000 and 2010, with an increase of 8.2% projected between 2010 and 2015. In terms of average household incomes, over the past ten years the City has increased by 28.0%, and is projected to increase by 6.7% in the next five years. The demographic data shows that the City is currently experiencing very healthy growth in its population and financial sectors, and with the new development opportunities on the horizon Herculaneum is poised to emerge as a prime destination for businesses and families alike in the near future.