Foot Locker no longer moving headquarters to St. Petersburg

Local business and civic leaders celebrated companies that “become St. Pete” in February, a list highlighted by Foot Locker’s impending arrival . The company has called off the moving trucks.Foot Locker will no longer relocate its global headquarters to St. Petersburg following its acquisition by Dick’s Sporting Goods. Mayor Ken Welch’s administration notified City Council members in a memo Wednesday, a day before they were set to vote on a formal update.The Manhattan-based Fortune 500 company will no longer receive up to $475,000 in municipal financial incentives. Foot Locker planned to open an expansive office in St. Petersburg’s business-centric Gateway area 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.”The news is a blow to local workforce development efforts. City officials expected Foot Locker’s move to create $18 million in new salaries.Dick’s announced Sept. 25 that it was buying the athletic apparel conglomerate for $2.4 billion. However, hope remained that the relocation train would stay on the tracks, as the omni-channel retailer planned to operate Foot Locker as a stand-alone entity.Foot Locker would have received a $235,000 base incentive and up to $240,000 for meeting conditions related to job creation, wage levels, capital investment into the headquarters and supplier diversity. The mayoral administration also preliminarily approved the company’s request for an economic development property tax exemption.“There is no fiscal impact to the city,” Corbett said of the failed deal. “The previously allocated incentive funds within the Economic and Workforce Development Division will remain unexpended and available for future qualified projects.”The acquisition came less than two months after Foot Locker announced it secured 110,998 square feet of Class A office space at 570 Carillon Parkway. City officials expected the company to put $20 million toward building out its new headquarters.Welch previously called the relocation an “investment in the promise of St. Pete’s culture, workforce and local economy.” Foot Locker would have joined fellow Fortune 500 companies Raymond James Financial and Jabil in the Gateway area.“I’m sure we’re all disappointed about the Foot Locker announcement, but no more so than I am, because this was a huge opportunity in my district,” council member Brandi Gabbard said Thursday evening. “I wholeheartedly supported the incentives, and I felt like we did a very good job with the administration … so, I am incredibly disappointed.”Council member Richie Floyd requested the update. He noted that the memo was “brief and straight to the point,” and he still wanted to ask questions publicly.For example, the memo does not state whether Foot Locker will occupy some space it leased earlier this year. The company has long operated a corporate office in St. Petersburg.Foot Locker did not immediately respond to a request for comment.While Gabbard understood Floyd’s desire to “have a conversation in the sunshine,” she believes that belaboring the point “pours salt in the wound.”“We know what is happening — it’s not,” said council chairperson Copley Gerdes. “It seems like we should be focusing on things that are happening rather than aren’t.”Floyd’s resolution failed in a 4-4 vote. He and council members Gina Driscoll, Corey Givens Jr., Mike Harting and Lisset Hanewicz voted in favor of a committee discussion.Foot Locker president Frank Bracken was the St. Petersburg Economic Development Corp.’s keynote speaker for its eighth annual meeting in February. He called the company a “beacon to attract talent” at the event and credited the city for its warm welcome.“We’re proud to establish our new headquarters in St. Petersburg,” Bracken said March 31. “With many of our team members already calling this city home, we’re excited to deepen our roots, foster connectivity and create greater alignment and inspiration for our team and brand patterns to bring sneaker culture to life.” This content provided in partnership with stpetecatalyst.com .

Foot Locker no longer moving headquarters to St. Petersburg

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Foot Locker no longer moving headquarters to St. Petersburg

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