Slay Says Centene “taking advantage of the state incentives”
Last month Mayor Slay got a bit ticked at a board meeting of the East-West Gateway Council of Governments. These meetings are recorded and below is Slay’s comments as they were transcribed and sent to me. This was following a staff report on the use of tax incentives:
“We have a situation that I hope you look at. There is a Modesa that is being used, I think the way the statute is written I’m not suggesting anyone did anything wrong. It’s available and people are going to take advantage of whatever is available. But we have a situation now that there is a long time law firm that’s been in downtown St. Louis and they have announced they are moving to Clayton* The reason they have given me is because that they threw so much money at this law firm that they had no other choice other than to leave the city even though they like being downtown and it was actually pretty controversial within the firm itself.
“They are moving to Clayton because they threw so much money at them, and I’m not saying it was Clayton who did it, but through the state, Centene who went to the state and got some incentives to build spec office space. They want to build their own headquarters plus they want to build their own spec office space, they want to try to fill that space and to create jobs is what they told Missouri Development Finance Corps. What they didn’t tell the Missouri Development Finance Corps is what they were going to do to create some of those jobs was to bring some jobs out of St. Louis city into St. Louis County, into Clayton, one of the wealthiest municipalities in the state if not the wealthiest, certainly from a school district standpoint, out of one of the most depressed and distressed school districts anywhere in the state.
I hope you take a good look at that one. I do think there should be some kind of changes at the state level to prohibit that from happening in the future. It is not good policy to shuffle jobs around like that, particularly from a distressed area into an area that cannot be considered distressed. That is going to have a tremendous impact on downtown by itself. There is another effort being undertaken by Brown Shoe to attract Thompson and Coburn into Clayton, using the same types of incentives. Thompson Coburn is the largest law firm in the region*we’re talking with the two firms somewhere between 800 to 1,000. Not only is it the reality of losing those jobs out of downtown, and we all agree it’s important to have a strong downtown, not only important to have a strong downtown, but it is the psychological impact on our ability to maintain a strong downtown. If people see major law firms that have been downtown forever, leaving for the suburbs. That does not bode well for the confidence level people have.
It’s happening because of one reason and one reason only * they having so much money thrown at them.
What I’m being told is that they are being offered $95 per square foot for tenant improvements — $95 per square foot. That is unconscionable. I’ve never heard anything close to that being given anywhere. They are offering $95 a square foot. They could not do that without the state incentives. Centene is not just giving it to them, they are in some way taking advantage of the state incentives to be able to offer this to the law firms to bring them out of the city to Clayton.
He’s right. Using tax incentives to move jobs across municipal & county lines is not what the programs meant by creating new jobs. Using tax dollars to move jobs out of a disadvantaged area into an affluent area is certainly wrong.
Centene is not the first nor the last to twist tax incentives to their favor. Remember West County Mall’s TIF – Des Peres blighted the old mall saying it was obsolete so they owners could get tax incentives to raze and rebuild. So now Centene is creating new jobs by stealing jobs from the city. It is a system run a muck. Incentives should be reserved for those circumstances where the market needs a little help.
Fox2 covered the Mayor’s view on Centene on August 21st (see their story). Do we just end all the incentives to prevent the haves from using what was intended for the have nots? Better yet we get our state legislators to tighten up the criteria.
I like this Mayor Slay. Angry. Passionate. Vocal. We need more of this mayor and less of the one that is more diplomatic.
