Clayton’s skyline is changing. The new headquarters of the Centene Corporation is under construction after years of challenges the corporation has had to overcome. The center hosting two commercial towers, retail stores, and restaurants, will have a significant impact on Clayton for many years to come.
Founded in 1984, the Centene Corporation is a national health care provider. Since 2004, the corporation has been searching for a new location for their new headquarters. Originally, Centene sought to build the new headquarters at a former bookstore at Forsyth Blvd. Centene also looked into other locations around the country without success, one of which was Ballpark Village in downtown St. Louis.
Ultimately, Centene chose to remain in Clayton and to build the new headquarters between Forsyth Blvd. and Carondelet Ave. on Hanley Rd. To encourage Centene to remain in Clayton, the city offered tax abatement to the corporation totaling about $18.9 million.
“We want corporate headquarters like Centene because they bring in jobs to the area, and if you bring in jobs, you bring in people, and those people support our restaurants and our retailers,†said Linda Goldstein, the Mayor of Clayton.
In 2007, the city of Clayton called for proposals to redevelop the block of Forsyth. Centene submitted the only proposal, and thus, with permission from the city, sought to acquire the entire block of Forsyth to help expand the new headquarters.
However, Centene faced opposition from some companies, and ultimately, the dispute took itself to the Missouri Supreme Court in Centene v. Mint Properties. The court ruled in Centene’s favor, and as a result, Centene acquired all of the retail shops on Forsyth Blvd.
Centene’s new headquarters will incorporate those businesses into the center’s new line of retail shops and restaurants on Forsyth Blvd. and the corner of Hanley Rd.
“It’s fabulous,†Goldstein said. She described the large open sidewalk with outdoor dining. In addition, the spacious plaza like an urban garden nestled between the two towers with a fire pit and peaceful water feature.
The center will feature two towers that will be mainly offices for Centene employees. The first tower is already under construction and when completed, will be 17 stories tall. The second will be located just south of the first tower on Hanley Rd. near Carondelet Ave.
The new headquarters will attract hundreds of new jobs to Clayton and generate a new tax revenue for both the city of Clayton and Clayton School District.
Goldstein explained how Clayton will definitely benefit through our tax base, the property taxes on the development, the people who are brought here and will spend their money here, and the presence of a major corporate headquarters
“Another corporate headquarters in Clayton will attract others,†Goldstein said.
Despite the tax abatement, the city is very pleased with the development of the corporation’s headquarters. In addition, the school district supports the development despite its nearly 50 percent loss in its future revenue from Centene due to the tax abatement. Instead of receiving $2 million a year from Centene, the school district will only receive about $1 million for the next 20 years.
“The psychology of [tax abatement] you could look at that as a glass half full or half empty, you could say we lost a million dollars or you can say we have a million more dollars in revenue that we would not have had without the development,†said Don Senti, Superintendent for the Clayton School District. “I think it’s a positive thing…It’s a million more dollars in revenue.â€
This new revenue Senti feels will take some pressure off the residential tax base.
However, overall, both Goldstein and Senti respect and admire the Centene Corporation for its continued involvement and support for the arts and education in the community.
“Centene has a history of getting involved in the community,†said Goldstein.
The corporation played a major role in the contributions for the redevelopment of Gay Field. Also, Centene sponsors events in the community such as the Big Read.
Both Goldstein and Senti look forward to the completion of the center.