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'A disappointment': Officials react to Centene's pause on more Clayton development

The health care giant has paused a second phase of development, including another new office tower, hotel, residential units, a civic auditorium and parking
Credit: SLBJ
Centene Corp.'s expansion project, under construction in Clayton in 2017. The company has paused a subsequent phase of development amid concerns over crime in the region.

ST. LOUIS — A Centene Corp. decision not to complete its planned headquarters development in Clayton "would certainly be a disappointment," the city's mayor said Tuesday.

The health care giant has paused a second phase of development, including another new office tower, hotel, residential units, a civic auditorium and parking, Clayton Mayor Michelle Harris said, with the company citing concerns over crime in the region. The St. Louis Post-Dispatch reported the company's decision Monday night.

"We've got one of the most successful companies, a real success story here in the region. If we were to lose further investment from Centene, I think it would be a real shame because we've got a corporation and CEO who have been successful in creating a lot of jobs," Harris said. As of June, the company employed 5,500 people here.

Jason Hall, CEO of Greater St. Louis Inc., the new economic development group taking shape Jan. 1, also praised Centene in a statement Tuesday, calling it "an incredibly important employer" and "an engaged corporate citizen."

"Our team at Greater St. Louis Inc. is laser-focused on job creation and driving inclusive economic growth," Hall said. "We stand ready to work with Centene and other businesses to help them grow in the St. Louis metro area."

Hall also acknowledged Centene's concerns, saying "like most metro areas, St. Louis has challenges that we need to address, including public safety."

"We believe that the economic development community is one of the relevant voices in shaping strategies to address regional challenges," he said. "We look forward to working with community partners to develop effective solutions."

Another business group, the Regional Business Council, of which Centene is a member, didn't immediately respond to a request for comment.

A Centene spokeswoman, Marcela Hawn, declined to comment on its decision about construction, saying CEO Michael Neidorff's concerns over crime in the region have long been publicized.

In the works for years, Centene's projected $770 million Clayton expansion was first to include a 27-story office building, which is substantially completed. That and a second phase were to be supported by $6.6 million in tax credits through the Missouri Works program and $75.6 million in Clayton, St. Louis County and state of Missouri tax abatements over 20 years, with $72 million from the city.

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