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Nike wins tax break for distribution center in southern Dallas County despite diversity concerns

Dallas County Commissioners sit at their seats in the county courtroom, facing staff and a podium. Behind them are three large screens containing a budget presentation.
Bret Jaspers
/
四虎影院
Dallas County commissioners have approved a tax abatement for Nike in the southern part of Dallas County.

Dallas County commissioners approved a tax abatement for Nike, the athletic apparel powerhouse, for a distribution center in the southern part of the county. The vote came despite concerns over the diversity of the company鈥檚 top leadership.

The tax break was passed with four votes in favor and one abstention from Commissioner Elba Garcia. Garcia said Nike鈥檚 relative lack of diversity on its board and in senior roles was why she abstained.

鈥淚 really think they lack, and they have a long way to go when it comes to diversity and inclusion,鈥 she said.

When the deal first came to commissioners on September 6th, Nike had no Latinos and three African Americans on its twelve-member Board of Directors. In late September, a Hispanic woman joined its board, along with another white man.

Garcia asked for specific future goals for diversity at the company. Jesse Crawford, the county鈥檚 director of the office of Small Business Enterprise, said those milestones are 鈥渟till under development.鈥

A said that at the director level and above, 14% of employees are Asian, 6% are Black, and 6% Latino. Distribution center employees, by contrast, are .

The Dallas County population is about 41% Latino, 24% Black, 7% Asian, and 27% white.

Representatives of Nike said they plan to have robust community engagement and will work with local colleges to prepare employees for advancement.

鈥淲e know that we have not arrived exactly where we want to be, but we know that we鈥檙e taking the strides in the right direction,鈥 said Robert Shorty, who works on diversity, equity, and inclusion in Nike鈥檚 supply chain.

The deal will reduce increases in appraised value for Nike and its landlord on land and 鈥渂usiness personal property鈥 鈥 things like machinery and computers. That, in turn, will reduce their property tax bill. The said the county will abate about $68,000 a year for ten years.

At the same time, it estimates the project will increase the county鈥檚 tax base by more than $60 million and support 500 new jobs. Under the county鈥檚 abatement policy, the project must employ at least 150 people in three years. The average salary would be $37,000.

The logistics company DHL will operate the distribution center.

Commissioner John Wiley Price, whose district includes Wilmer, praised Nike for returning with another presentation.

鈥淚 appreciate the fact you took the scrutiny,鈥 he told company representatives.

Price and Garcia both noted that Wilmer 鈥 which is giving Nike its own tax incentives and a cash grant 鈥 needs economic development. The city administrator for Wilmer did not immediately respond to an email seeking more detail.

The distribution center was 鈥減art of our strategy at Nike that we are putting in regional service centers,鈥 said Emily Whittenburg, a tax specialist at Nike. She noted the Wilmer site 鈥渟its in the middle of the United States.鈥

Got a tip? Email Bret Jaspers at bjaspers@kera.org. You can follow Bret on Twitter .

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Bret Jaspers is a reporter for 四虎影院. His stories have aired nationally on the BBC, NPR鈥檚 newsmagazines, and APM鈥檚 Marketplace. He collaborated on the series Cash Flows, which won a 2020 Sigma Delta Chi award for Radio Investigative Reporting. He's a member of Actors' Equity, the professional stage actors union.