Local business and civic leaders had celebrated companies that “become St. Pete” in February, and Foot Locker’s impending arrival was a highlight. Now, those moving trucks have been called off. Following its acquisition by Dick’s Sporting Goods, Foot Locker will no longer relocate its global headquarters to St. Petersburg.
Mayor Ken Welch’s administration informed City Council members of the decision in a memo on Wednesday—one day before a formal vote on updating the city’s incentive package. As a result, the Manhattan-based Fortune 500 company will not receive up to $475,000 in municipal financial incentives previously approved for its relocation.
Foot Locker had planned to open an expansive office in the Gateway business district this fall. “Following the acquisition, the company reevaluated its corporate strategy and decided not to move forward with relocating its global headquarters to St. Petersburg,” wrote City Development Administrator James Corbett. “As a result of this decision, Foot Locker will not be fulfilling the conditions required under the city’s approved incentive package. Therefore, no financial incentives or tax exemptions will be provided to Foot Locker, Inc. by the City of St. Petersburg.”
City officials had anticipated that Foot Locker’s move would generate $18 million in new salaries and spur local workforce development. Under the approved package, the company stood to receive a $235,000 base incentive plus up to $240,000 more for meeting targets on job creation, wage levels, capital investment, and supplier diversity. The mayoral administration also preliminarily approved an economic development property tax exemption for the new headquarters.
Corbett stressed that the change carries no fiscal impact for the city: “The previously allocated incentive funds within the Economic and Workforce Development Division will remain unexpended and available for future qualified projects.”
The acquisition by Dick’s Sporting Goods—a $2.4 billion deal announced Sept. 25—came less than two months after Foot Locker secured 110,998 square feet of Class A office space at 570 Carillon Parkway. The company had planned a $20 million build-out for its new headquarters.
Welch had lauded the relocation as “an investment in the promise of St. Pete’s culture, workforce and local economy.” Foot Locker would have joined fellow Fortune 500 firms Raymond James Financial and Jabil in the Gateway area.
Council member Brandi Gabbard expressed disappointment at the announcement: “I wholeheartedly supported the incentives, and I felt like we did a very good job with the administration… I am incredibly disappointed.”
Council member Richie Floyd, who requested the memo, said he still wants to raise questions publicly—such as whether Foot Locker will occupy any of the space it leased earlier this year. Although the company already has a small corporate office in St. Petersburg, no details have been provided.
Gabbard cautioned against dwelling on the setback: “We know what is happening. It seems like we should be focusing on things that are happening rather than aren’t.” Floyd’s push for a committee discussion on the matter resulted in a 4–4 tie vote, falling short of the support needed for further public debate.
Foot Locker did not immediately respond to a request for comment. In March, President Frank Bracken had called the company a “beacon to attract talent” during the St. Petersburg Economic Development Corporation’s annual meeting, praising the city for its warm welcome and expressing excitement about deepening the company’s roots in St. Petersburg.
https://floridapolitics.com/archives/765777-foot-lockers-relocation-deal-is-dead-on-arrival/