Armstrong Teasdale plans Clayton move
Armstrong Teasdale LLP has signed a letter of intent to move from downtown into the planned $200 million Centene Plaza in Clayton, the law firm said Wednesday.
"Until a final lease is signed, we are not able to comment on the ongoing process, and we have no further announcements at this time," said Michael A. Chivell, managing partner.
If Armstrong Teasdale moves to Clayton, downtown St. Louis will lose 406 workers, including 186 lawyers. The firm currently has headquarters at One Metropolitan Square, 211 North Broadway.
"We’re very sorry Armstrong appears to have chosen to leave downtown," said Barbara Geisman, deputy mayor for development. "We do not believe that leaving downtown is a good decision for Armstrong."
The city tried to convince the firm to remain at Metropolitan Square and has continued to talk to individual members about the benefits of staying downtown, Geisman said. She did not discuss any incentives that were on the table.
But the city was able to keep a bigger fish, Thompson Coburn LLP. On Tuesday, the firm, which employs 595 people downtown, announced it would stay at U.S. Bank Plaza in exchange for $700,000 in tax abatements and incentives from the city. Thompson Coburn employs the most lawyers in the city and generates $1.2 million in taxes annually for city services.
Thompson Coburn’s announcement came one day after Robert Wislow, chairman and chief
executive of U.S. Equities of Chicago, one of the Centene Plaza developers, told the Clayton Plan Commission and Architectural Review Board that Armstrong Teasdale expects to occupy "multiple floors" at the top of the 21-story tower.
That building, planned for the corner of Forsyth Boulevard and Hanley Road, would be built first and is expected to be completed in 2010 under the developers’ timetable.
Clayton Center LLC, made up of U.S. Equities, Centene Corp first cash advance. and Clayco, already has an agreement with the city to redevelop the site. The developer plans two office towers, shops, restaurants and a parking garage. It hopes next month to begin demolition of the old Library Ltd. building, where the 21-story tower would be. The high-rise is planned for the southwest corner of Hanley Road and Forsyth Boulevard. It also would house Centene’s headquarters.
The review board voted Monday to recommend in favor of the necessary rezoning and approved some planning for the first phase and architectural details of the tower. The rezoning will go to the Board of Aldermen on Sept. 23.
Armstrong Teasdale has worked as Centene’s lawyer on the project over the past several years and has been mainly responsible for preparing its financing package.
After being thwarted in its first attempt to develop the mixed-use complex in Clayton, Centene last September flirted with St. Louis, promising to come downtown as part of Ballpark Village. But Centene later reversed course after a deal with St. Louis couldn’t be reached and Clayton offered a new incentives package.
In an agreement with Clayton, Centene will get a 50 percent tax abatement for real and personal property taxes up to $22 million over 20 years, a sales tax exemption on construction materials and a sales tax exemption on personal property.
In addition, Centene has received $8 million from the state and will receive roadwork contributions from St. Louis County.
Clayton Mayor Linda Goldstein said the city had not offered any incentives to Armstrong Teasdale.
"This was a negotiation between the developer and the law firm, and we were not at involved in the conversation," Goldstein said. "But I am delighted."
gappleson@post-dispatch.com | 314-340-8331
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