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| Economy |
| Clayton Mo. approves $75 million in tax breaks for Centene Healthcare HQ |
| 2016-11-16 |
| [Post Dispatch] The Clayton Board of Aldermen unanimously approved a tax abatement agreement with Centene Corp. on Tuesday night that paves the way for the fast-growing health insurer to build a huge new office campus for 2,000 additional employees. An agreement between the Medicaid managed care company and Clayton knocks 40 percent off real property taxes on the new buildings planned along Forsyth Boulevard in downtown Clayton. Half of the personal property taxes are to be abated. The vote came despite opposition from some residents, who complaints included the hefty tax incentives, the lack of a public vote on the plan, congestion from the project and construction noise while it is built. Mayor Harold Sanger, while expressing empathy for residents’ concerns, said board members ultimately made the decision they believe is best for the community, including the school district. Sanger added that some opposition to the proposal was based on misinformation, namely people believing that a tax abatement means the city is taking public funds "and writing a check" to Centene to build. In all, the agreement is projected to save Centene about $75 million over 20 years, or about $40 million in today’s dollars, on the $772 million project. The company has also won approval for $10 million in Missouri BUILD bonds and has requested some $35 million in state incentives for companies that add enough new workers. Con't. |
| Posted by:Besoeker |
| #2 A $772 MILLION project will generate a lot more than the 2000 jobs in the company. Huge sales tax and income source for the state and locals from the building materials and labor costs of the project... The $75 million in tax savings to the company are a spit in the ocean to the multiplier effect of the income and material purchase cash flow from the construction. |
| Posted by: Sock Puppet of Doom 2016-11-16 11:48 |
| #1 ...Call me cynical ("You're cynical!") but I'd be curious to know exactly what kind of gratitude is being shown to the Board of Aldermen to get a 40% property tax break. Wish every state had a law that says ANYTHING past about 15% needs to be approved at the state level, because they're the ones who will have to bail these places out when it unexpectedly goes south.... Mike |
| Posted by: Mike Kozlowski 2016-11-16 05:53 |