Dallas approves $9.3 million in incentives for Uber's big expansion plan
Dallas is a leading contender for an office that'd be Uber's largest hub outside of its San Francisco headquarters. The tech company also looked at sites in Arizona, according to city of Dallas documents.
The logo for Uber appeared above a trading post on the floor of the New York Stock Exchange, Friday, Aug. 9, 2019. (Richard Drew / AP)
By Melissa Repko
Dallas may have gotten a step closer to landing Uber's major office. City leaders unanimously approved about $9.3 million in economic incentives Wednesday to try to land the tech company's corporate hub.
The city's economic incentive package for Uber includes a tax break of about $746,000 from a five-year tax abatement and up to $8.6 million in economic development grants.
Dallas is a leading contender for an office that's expected to bring 3,000 jobs and become Uber's largest hub outside of its San Francisco headquarters. Employees at the office would have a minimum average annual salary of $100,000. The tech company also looked at sites in Arizona, according to city of Dallas documents.
If Uber picks Dallas, it would move into a new tower that will be built at The Epic, an 8-acre development in Deep Ellum.
City Council members approved the agenda item without discussion. Council member Adam Medrano, who represents the Deep Ellum site, declined to comment.
In a statement, Mayor Eric Johnson said the incentive package "illustrates Dallas' continued commitment to innovation in strengthening its workforce."
Uber spokesman Chris Miller said the company "looks forward to making a decision in the near future."
"It's very encouraging to see the mayor and city council excited about approving this investment in our project," he said.
Uber must meet investment and job creation targets to get the incentives, according to the city's agreement. It must invest at least $50 million in business personal property improvements and create or relocate 2,500 full-time jobs by the end of 2023. It must maintain at least 2,500 jobs with a minimum average annual salary of $100,000 for 10 years starting at the end of 2023.
The company also has to hold, host or participate in two job fairs by the end of 2022 in Dallas to encourage local hiring.
Uber is planning to open the new office as it faces headwinds and scrutiny from investors. The venture capital-fueled company went public in May. The company has expanded across the globe and become a household name, but it has never turned a profit. It recently laid off about 400 marketing employees and froze hiring of engineers in many divisions of its business.
Dallas County leaders will consider economic incentives for the company next week. The county will vote Aug. 20 on a tax abatement proposal that could save Uber about $2.6 million in taxes over a 10-year period.
The governor's office declined to say whether it is offering economic incentives to Uber.
Melissa Repko, Staff Writer. Melissa covers technology, innovation and other business news for The Dallas Morning News. She reports on companies from venture-backed startups to Fortune 500s. Her reporting has been featured on NPR and PBS NewsHour. Before joining The Dallas Morning News in 2010, she worked for The Buffalo News, The Oregonian and ABC News.
mrepko@dallasnews.com @melissa_repko