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Petitions target Centene incentives

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Petitions target Centene incentives
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Centene's planned data center

O'FALLON, Mo. • Petitions with more than 800 signatures were submitted Monday to try to force a citywide election on a financial incentive package approved in June to get Centene Corp. to build a data center.

City officials, however, contend that the petitions are invalid because the Centene ordinance relates to spending and authorizes a capital program — two matters which the city charter says aren't subject to a referendum.

A.C. Dienoff, who chairs the Operation Stop Tax Break committee, said he'll go to court to challenge the city's interpretation.

"The people have spoken very loudly and on paper that they want a vote on this issue," Dienoff said.

A city spokesman said work on the project has yet to begin. Centene officials could not be reached for comment.

The deal approved by the City Council gives Centene, a Clayton-based health benefits administrator, a 50 percent property tax break over 10 years and the city's promise to issue $24 million in bonds to finance the project.

The city also would waive Centene's property taxes during construction. The company also will get some sales tax breaks on the purchase of construction materials.

Dienoff, a frequent candidate for public office, argues that "the city's giving away the store" to get a facility that promises few jobs. The company has said it expects the project to generate six to 10 jobs.

Mayor Bill Hennessy, a supporter of the project, said the city will see a net gain of new tax revenue from the vacant site on Waterbury Falls Drive.

"It's not costing the city a dime," he said. "The city's at no risk."

Under the city charter, signatures of 554 registered voters — an amount equal to 7 percent of the total vote for mayor last year — can begin the referendum process. If the council refused to repeal the ordinance in question, it would go before voters. The committee wants the vote at the municipal election in April.

Copyright 2012 STLtoday.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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