Dallas commissioners hesitate over tax incentives to get 500 Nike jobs

Dallas County commissioners are hesitant to give Nike’s potential distribution center a 50% tax break after some of them challenged the company on its diversity. The commissioners’ leeriness could jeopardize the athletic shoe and clothing company’s plan to bring a $60-million-plus distribution center to Wilmer along with 500 jobs in 2025. The proposal would give Nike and its landlord, LPC Southport, a 10-year, 50% tax exemption, costing the county more than $68,000 a year in tax revenue. The promised 500 jobs would have an average salary of $37,000, about $7,000 more than most salaries in the inland port, Dallas County said. “Additionally, this project will increase the county’s tax base by at least $60 million,” the proposal said. In meetings this month, commissioners have questioned whether Nike’s tax break request should be granted, due to the company’s reported leadership diversity data.

In Nike’s most recent report on 2021 employee data and goals, women held 43% of leadership positions, and racial and ethnic minorities held just over 30% of positions as directors and higher. Commissioner John Wiley Price, one of the most vocal members of the court on this issue, and Commissioner Theresa Daniel told The Dallas Morning News that they are waiting on more information before making a decision. Commissioner Elba Garcia told KERA earlier this week that she was less inclined to support the tax break after reading Nike’s report. Commissioner J.J. Koch said on Sept. 6 that the county can afford to be selective in who moves into economically busy southern Dallas County. Tax reductions can be granted by a government for a wide range of reasons, including the promise of increased housing production or created jobs and the long-term impact to the tax base. He said there is a lot of work to be done before commissioners can justify to taxpayers a Nike tax break. “Definitely Nike can do more,” Koch said on the dais. “Looking at a lot of the stuff happening in South Dallas, we’re just not in a place to be desperate. We are just not. I don’t want to give off that message that we are just going to take whatever we can get.” Nike did not respond to requests for comment. Eric Geisler, president of Economic Incentive Services, a regional site and incentives consultant, represented Nike at the Sept. 6 Commissioners Court meeting. Geisler responded to Koch, saying that this site was “one of many they were looking at.”