Thoughts for Our Membership: Centene Project

Over the past few months there have been numerous articles and opinion pieces presented by the local St. Louis Media regarding Centene Corporation and its qualification for tax credits that were awarded by the City of Clayton in 2016 totaling $75 million. These Tax Credits were available in part upon timely completion of certain construction goals related to the Centene Corporate Campus Project that was approved at the same time. The Media reported that key construction goals have not been met. In fact, Michael Neidorff, CEO of Centene, is on the record pausing the Centene Construction plans. We understand that this “pause” relates to Mr. Neidorff’s concerns about crime in the St. Louis Area and local government’s inability, at least as Mr. Neidorff sees it, to take action to curb this problem.

Centene Corporation has also announced that it is building a regional headquarters campus in Charlotte, North Carolina. The Media further reported that the State of North Carolina has awarded Centene up to $450 million in incentives, over 39 years, to complete this project and move significant numbers of jobs to North Carolina.

In 2016 there was a lot of local opposition to the awarding of these tax credits to Centene Corporation. The deal was concluded by the Board of Alderman without public input. We find it interesting that Centene has allowed its $75 million in local tax credits to expire just as it is announcing concerns about local crime and entering into agreements with North Carolina to build a massive campus, one even larger than the one that is under development here in Clayton. The news media reported that St. Louis Community leaders are running to Mr. Neidorff seeking assurance that Centene’s headquarters will remain in St. Louis.

Many in our community have begun to wonder if these announcements by Centene might just be a ploy to cause Clayton to renegotiate the tax credits awarded in 2016. Perhaps the amounts awarded by North Carolina have provided a new perspective on his prior commitments. While we have no way to know what Mr. Neidorff’s motives are, we can’t help but wonder how members of our community would feel about a substantial increase in tax credits that may be up for renegotiation with Centene. We suggest that our membership begin to think about this now as we would not want to be caught off guard if a new deal is announced.