County considers $63 million in bonds for Express Scripts expansion
St. Louis Business Journal
November 11, 2010
By Kelsey Volkmann
St. Louis pharmacy benefits manager Express Scripts is seeking $63 million in bonds from St. Louis County for an expansion at NorthPark.
If the deal goes through, the company would add at least 150 new jobs and build a 225,000-square-foot technology center at North Hanley Road and Evans Avenue across Interstate 70 from the company's headquarters.
The St. Louis County Economic Council submitted a request on behalf of Express Scripts to the St. Louis County Council for an incentives package that includes $43 million in "taxable redevelopment leasehold revenue bonds" and $20 million in "taxable industrial revenue bonds." The county council has not yet voted on the measure. The incentives would provide 50 percent reduction in real and personal property taxes for 10 years, according to county officials.
The aid package also would help Express Scripts retain 1,300 existing jobs here, county officials have said. Retained jobs earn an average of $40,500 annually, and the new jobs would generate an average salary of about $60,000 a year, county officials said.
Express Scripts "is exploring options for increasing efficiencies by consolidating operational functions now performed at multiple sites," spokesman Thom Gross said. "It is too early in the process, however, for us to comment on any specifics."Express Scripts did not say what other locations it is considering for expansion but it now has a presence in Ohio and South Carolina following its $4.7 billion acquisition of NextRx from WellPoint.
The company said its final decision would be based on the county's incentive package and another package of incentives it submitted to the Missouri Department of Economic Development and Missouri Development Finance Board.
Earlier this month, Express Scripts said its profit soared more than 53 percent in the third quarter to $301.5 million, compared with $197.6 million a year ago. The company, led by Chairman, President and Chief Executive George Paz, said revenue for the quarter ended Sept. 30 doubled to $11.2 billion, from $5.6 billion a year earlier.
