Local business and civic leaders celebrated companies that \u201cbecome St. Pete\u201d in February, a list highlighted by Foot Locker\u2019s impending arrival. The company has called off the moving trucks.<\/p>\n
Foot Locker will no longer relocate its global headquarters to St. Petersburg following its acquisition by Dick\u2019s Sporting Goods. Mayor Ken Welch\u2019s administration notified City Council members in a memo Nov. 12, a day before they were set to vote on a formal update.<\/p>\n
The Manhattan-based Fortune 500 company will no longer receive up to $475,000 in municipal financial incentives. Foot Locker planned to open an expansive office in St. Petersburg\u2019s business-centric Gateway area this fall.<\/p>\n
\u201cFollowing the acquisition, the company reevaluated its corporate strategy and decided not to move forward with relocating its global headquarters to St. Petersburg,\u201d wrote City Development Administrator James Corbett.<\/p>\n
\u201cAs a result of this decision, Foot Locker will not be fulfilling the conditions required under the city\u2019s approved incentive package. Therefore, no financial incentives or tax exemptions will be provided to Foot Locker, Inc. by the City of St. Petersburg.\u201d<\/p>\n
The news is a blow to local workforce development efforts. City officials expected Foot Locker\u2019s move to create $18 million in new salaries.<\/p>\n
Dick\u2019s announced Sept. 25 that it was buying the athletic apparel conglomerate for $2.4 billion. However, hope remained that the relocation train would stay on the tracks, as the omni-channel retailer planned to operate Foot Locker as a stand-alone entity.<\/p>\n
Foot Locker would have received a $235,000 base incentive and up to $240,000 for meeting conditions related to job creation, wage levels, capital investment into the headquarters and supplier diversity. The mayoral administration also preliminarily approved the company\u2019s request for an economic development property tax exemption.<\/p>\n
\u201cThere is no fiscal impact to the city,\u201d Corbett said of the failed deal. \u201cThe previously allocated incentive funds within the Economic and Workforce Development Division will remain unexpended and available for future qualified projects.\u201d<\/p>\n
The acquisition came less than two months after Foot Locker announced it secured 110,998 square feet of Class A office space at 570 Carillon Parkway. City officials expected the company to put $20 million toward building out its new headquarters.<\/p>\n
Welch previously called the relocation an \u201cinvestment in the promise of St. Pete\u2019s culture, workforce and local economy.\u201d Foot Locker would have joined fellow Fortune 500 companies Raymond James Financial and Jabil in the Gateway area.<\/p>\n
\u201cI\u2019m sure we\u2019re all disappointed about the Foot Locker announcement, but no more so than I am, because this was a huge opportunity in my district,\u201d council member Brandi Gabbard said Nov. 13. \u201cI wholeheartedly supported the incentives, and I felt like we did a very good job with the administration \u2026 so, I am incredibly disappointed.\u201d<\/p>\n
Council member Richie Floyd requested the update. He noted that the memo was \u201cbrief and straight to the point,\u201d and he still wanted to ask questions publicly.<\/p>\n
For example, the memo does not state whether Foot Locker will occupy some space it leased earlier this year. The company has long operated a corporate office in St. Petersburg.<\/p>\n
Foot Locker did not immediately respond to a request for comment.<\/p>\n
While Gabbard understood Floyd\u2019s desire to \u201chave a conversation in the sunshine,\u201d she believes that belaboring the point \u201cpours salt in the wound.\u201d<\/p>\n
\u201cWe know what is happening \u2014 it\u2019s not,\u201d said council chairperson Copley Gerdes. \u201cIt seems like we should be focusing on things that are happening rather than aren\u2019t.\u201d<\/p>\n
Floyd\u2019s resolution failed in a 4-4 vote. He and council members Gina Driscoll, Corey Givens Jr., Mike Harting and Lisset Hanewicz voted in favor of a committee discussion.<\/p>\n
Foot Locker president Frank Bracken was the St. Petersburg Economic Development Corp.\u2019s keynote speaker for its eighth annual meeting in February. He called the company a \u201cbeacon to attract talent\u201d at the event and credited the city for its warm welcome.<\/p>\n
\u201cWe\u2019re proud to establish our new headquarters in St. Petersburg,\u201d Bracken said March 31. \u201cWith many of our team members already calling this city home, we\u2019re excited to deepen our roots, foster connectivity and create greater alignment and inspiration for our team and brand patterns to bring sneaker culture to life.\u201d<\/p>\n