Foot Locker Gains Support with Incentive Package from St. Pete

St. Petersburg is set to allocate $475,000 in public funding to Foot Locker in return for relocating its headquarters to the Sunshine City. This strategic move aims to enhance the city’s business landscape while boosting local employment.

City Council Vote Set for September 26

The St. Pete City Council will cast its vote on the incentive package on Sept. 26. The funding comes with several conditions, including the creation of 150 net new jobs. Interestingly, this is half the number of jobs Foot Locker was originally expected to provide when it considered moving to the city a few years ago.

Despite the slight reduction in job creation, the deal remains largely unchanged from the one approved by the city in October 2021. However, a month later, voters decided to end the tax incentive program that was part of the previous arrangement.

Tax Incentive Program Reinstated in 2022

By 2022, Foot Locker seemed to have lost interest in relocating to St. Pete, but the tide changed when voters restored the tax incentive program that same year. This reimplementation allowed for a new package to move forward, giving the city another opportunity to attract a Fortune 500 company.

“City administration recommends council approve this resolution,” city documents state. “These incentives will bring another Fortune 500 headquarters to St. Petersburg, generating new job opportunities for local residents, including those in the South St. Petersburg CRA.”

Base Incentive Package Details

The base incentive package amounts to $235,000 and comes with the following conditions:

• 150 new jobs with an average salary of $120,000
• An office lease of at least 100,000 square feet within city limits
• A capital investment of at least $20 million at the new headquarters
• Efforts to include small, minority-, and women-owned businesses in the process

Foot Locker currently subleases space from Franklin Templeton at 140 Fountain Parkway, but it remains unclear how much additional space it will require. JLL is representing Foot Locker in its search for office space in St. Pete.

Hiring Incentives for South St. Pete Residents

The second part of the economic development package, amounting to $240,000, focuses on hiring incentives for South St. Pete residents. The highest reward, based on salaries that are at least 200% of Pinellas County’s average wage, offers Foot Locker $10,000 per new hire from South St. Pete. This incentive is available for up to 10 years after the headquarters’ grand opening.

This hiring package is more substantial than the 2021 version, as the $100,000 workforce development incentive has been removed. Previously, this provision required a workforce training plan and a three-year implementation strategy. Additionally, Foot Locker is no longer required to collaborate with St. Pete Works.

Pinellas County Incentives Still Available

Cynthia Johnson, the Director of Economic Development for Pinellas County, stated that the county’s 2021 incentives are still available to Foot Locker.

“The Pinellas County Board of County Commissioners previously approved an Ad Valorem Tax Exemption Resolution to support the company’s relocation,” Johnson said. “The resolution confirmed the company as a qualified applicant for the ADVTE, ensuring they could maintain their competitive position for the project without forfeiting the possibility of receiving the ADVTE in the future.”

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