Centene Tower has begun to rise
CLAYTON — Three years ago, the shops and offices along the southern side of the 7700 block of Forsyth Boulevard were the focus of an acrimonious battle over eminent domain.
Later, the expansion plans of adjacent Centene Corp. became the coveted prize sought by the city of St. Louis and numerous other governments here and around the country.
Now, the pushing and shoving is over, and the offices and shops on Forsyth are being demolished — without objection — and Centene Tower has begun rising.
When completed in the summer of next year, the first phase of the $212 million project will include the 17-story tower, a 1,000-space parking garage, space for restaurants and shops and the Forsyth Court public plaza, all on half of a city block.
Earlier this month, the Clayton Board of Aldermen passed a key piece of financing legislation when it authorized selling up to $229 million in industrial revenue bonds.
Centene will use those bonds to become eligible for partial tax abatement.
Under it, 50 percent of Centene’s real estate and personal property taxes will be abated for either 20 years, or until Centene’s payment reaches $18.9 million.
In addition, the project has promises of:
— A sales tax exemption from the city of Clayton on construction materials.
— Job tax credits from the Missouri Department of Economic Development based on the number of new jobs created by the project.
— $8 million from the Missouri Build program.
— $1 million for road and infrastructure improvements from St. Louis County.
(The city of Clayton itself has no liability if the project has financial problems down the road, officials said.)
Mayor Linda Goldstein and other supporters say that the redevelopment will significantly boost revenue for local governments and provide hundreds of jobs for the region no faxing payday loan. Goldstein is encouraged by the progress.
"Things are really happening and that’s particularly exciting in this challenging economy," she said in an interview. "It appears that Clayco (a partner and the general contractor for the project) is keeping a tight construction schedule and that they’re determined to deliver a completed project by next summer."
The details of the development have changed over time. And so has the location — from Clayton to the proposed Ballpark Village downtown and then back to Clayton in 2008. In February, the project was downsized in response to economic conditions, and the Koman Group was brought in as a partner in the last few months.
Koman joins the original partners: U.S. Equities Realty, an international commercial real estate firm based in Chicago; Clayco, the real estate, design and construction company based here; and Centene, a health care management company.
Centene will retain its current offices at 7711 Carondelet Avenue and the old city garage next door, which Centene purchased.
A second phase, if built, would include a nine—story office building at Hanley Road and Carondelet and expansion of the plaza.
Ironically, Centene and its development partners were able to obtain all the land needed only after the company lost its bid to use blighting and eminent domain to acquire three of the properties.
The late Daniel Sheehan of Dolan Realty, Debbie Pyzyk of Kohner Properties and David Danforth had filed suit to challenge the use of blighting and eminent domain. After the Missouri Supreme Court ruled in their favor, the plaintiffs agreed last year to sell their properties to a third party. Those properties in the 7700 block of Forsyth later were sold to Centene.
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