JEFFERSON CITY, Mo. — The Missouri Development Finance Board approved about $10 million in bonds on Tuesday to help finance Centene Corp’s planned $770 million expansion to its headquarter’s in Clayton, Mo.
The board voted unanimously to approve $10.3 million in bonds from the state’s Build Program for the health-care company’s proposal that would create 3.3 million square feet of new buildings and parking.
The 11-member board met in downtown Jefferson City on Tuesday, with two board members appearing via conference call. The board consists of three state department directors — agriculture, economic development and natural resources — as well as Lt. Gov. Peter Kinder and seven others who are appointed by the governor.
Those board members who spoke seemed impressed with the proposal, which calls for two new office towers, an 11,000-seat civic auditorium, retail, hotel space and 100 residential units, largely for condominiums. Centene said the project would create about 1,000 new jobs.
“I like the plan, I like the development,” said board vice chairman Reuben Shelton.
In a statement released to the media Tuesday, Centene, a Fortune 500 company with over $40 billion in annual revenue, said it is pleased that the board approved the $10 million in the aggregate over a period of 15 years in Missouri Build Bonds for its proposed construction project in Clayton.
“As the second largest corporation in the state of Missouri based on revenue, we look forward to the opportunity to bring 2,000 full-time jobs to the city of Clayton, of which 1,000 will be net new full-time jobs in the state of Missouri,” the company said in the statement. “While we are still early in the process, we look forward to partnering with the Missouri Development Finance Board, St. Louis County and the city of Clayton on this important project.”
Larry Chapman of Clayco went over the project with the board members Tuesday morning. Clayco is Centene’s construction manager on the project, Cushman Wakefield is the lead project manager and HOK is its architect.
Chapman said that, ideally, the project could be under construction by December and completed by 2019.
Build Bonds are a state incentive used to provide a financial incentive for the location or expansion of large business projects. The incentives are designed to reduce infrastructure and equipment expenses if a project can demonstrate a need for funding.
The company is seeking a total of $147 million in incentives and tax breaks for its expansion, according to documents on file with the board. The city of Clayton would kick in nearly $96 million in property tax abatement.
One board member asked Chapman about some “push back” from nearby residents, who were upset that the expansion would block their scenic views from the condominiums where they lived.
Board members seemed unmoved.
“They could have bought the property if they wanted to protect their view,” said board member Kelly Martin. “So I have a limited amount of patience with them.”
Centene is a multi-national healthcare enterprise that provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured people. Their clients receive benefits from Medicaid, including the State Children’s Health Insurance Program (CHIP), as well as aged, blind or disabled, foster care, and long-term care.
Centene operates with local health plans and offers a range of health insurance solutions.
