Saturday, May 07, 2005

Members of St. Charles City Council Fear Express Scripts Move to St. Charles in Jeopardy

By Phyllis Schaltenbrand
Months of hard work and creative thinking has St. Charles City on the short list for the new site of Express Scripts headquarters.
Express Scripts, one of the nations largest mail order pharmaceutical companies, has been looking throughout the St. Louis Metropolitan area to relocate their current operations from Riverport. Three locations in St. Charles were considered: the City owned property on Little Hills Expressway, New Town and Fountain Lakes.
It appears Fountain Lakes has made the short list. Fountain Lakes is located on the Northwest side of Highway 370 in northern St. Charles City. Bob Millstone and Hyatt Bangert are the developers of Fountain Lakes and had originally planned for the area to be primarily a distribution center. Since then, The New Town at St. Charles has them reconsidering that use and has many corporate clients looking to build. Keith Schnieder of Colliers Turley Martin stated at last Tuesday Nights Council meeting, “New Town has created a tremendous amount of interest in the Fountain Lakes area.”
Nadine Boone, Councilman John Gieseke and Bob Millstone have been trying to find a way to compete with the three other sites on the short list. Gieseke told the First Capitol News, “One of the sites is the airport property. This area is an enterprise zone and can offer so many economic incentives it makes it difficult for St. Charles to compete. St. Charles made the short list because of our area and the amenities we offer. Ms. Boone and Mr. Millstone have really been working to find a solution to place St. Charles on as close to a level playing field as possible. There are some incentives for creating environmentally sound buildings as part of the equation along with other creative ideas. The fact is, we are a long shot.”
It is ironic the Express Scripts relocation comes forward while the Council is conducting an administrative hearing into the signing of a contract for services provided by Express Scripts. Much has been written about Mayor York signing a contract with Express Scripts and she has now admitted to signing the document. Councilman Gieseke told the FCN, “I am confident the two issues are considered separate inside the corporate walls of Express Scripts. The only concern I have is whether or not Express Scripts will have the comfort level to trust the City if we sign any documents promising services or economic enticements to relocate the 200 jobs to Fountain Lakes. Since the Council is unable to get the witnesses who might clear the Mayor, it places the City in a poor position to deal in good faith with Express Scripts. Are they going to trust the Mayor? I think it is going to take the best efforts of the City Administrator and the St. Charles City Council to alleviate any concerns about the City’s resolve to have Express Scripts as a corporate resident if the deal makes sense.”

Council President Rory Riddler told the FCN, “The tax incentives and other economic tools being offered in St. Louis County have created a playing field that is not level. When you get right down to it whether we have the contract with Express Scripts or not will not be a deciding factor. Millions of dollars of tax relief will be the difference, it is an issue of economics.”

Councilman Joe Koester stated, “I am fearful the Mayor’s questionable signing of the Express Scripts contract may spill over to any negotiations for economic incentives the City may be able to offer.”

Express Scripts has reportedly asked for all incentive packages to be delivered by next week. We were unable to find out what, if any, incentives the City could offer to lure Express Scripts to St. Charles.

City Administrator Allan Williams and Economic Development Director Nadine Boon did not return our call.