Uber Cuts 2,500 Planned Jobs in Deep Ellum Site, Pulls Out of Government Incentives – NBC 5 Dallas-Fort Worth
Uber pulled out of all local and state government incentives on Thursday when the rideshare company announced it was scaling back its plans for the proposed Deep Ellum offices.
The company originally promised to create 3,000 jobs with the opening of a new hub in Deep Ellum, but said “dramatic effects” of the pandemic would have reduced the capacity of the office at Epic to 500 employees.
“We are focusing our efforts on our core mobility and delivery platforms and adapting our company to the realities of our business, which has led us to the difficult decision to reduce our future Dallas office capacity to 500 employees,” an Uber spokesperson said in a statement on Thursday.
In August 2019, Uber signed local, state and federal economic incentive agreements totaling over $ 36 million in grants and tax breaks.
Of that $ 36 million, $ 24 million came from the state incentive fund Texas Enterprise Fund, the largest amount any Dallas Fort-Worth company has received since 2018.
Dallas City Council approved a $ 9 million package in August 2019 to lure Uber to north Texas. Additional incentives from the Dallas County Commissioners included a 50% reduction in Dallas County taxes and a 90% reduction in commercial property taxes for 10 years.
But those tax breaks had to create at least 2,500 jobs with salaries of at least $ 100,000 by January 2023.
Dallas Mayor Eric Johnson announced in a statement Thursday that the city of Dallas is canceling its hiring-based incentive agreement with Uber.
Johnson called the incentive package between Uber and the city of Dallas a win for all groups involved in 2019. However, he said he was “disappointed but not surprised” by Uber’s decision on Thursday due to the “significant economic impact of the COVID-19 pandemic “. “
“Uber has been an excellent partner for the city for the past year and a half,” Johnson said in a statement Thursday. “We are encouraged that Uber continues to be committed to Dallas and employs hundreds of people in our downtown area. We expect to continue working together in the years to come to build for the future and make Dallas an internationally recognized center for innovation and entrepreneurship. “
According to Dom DiFurio of Dallas Morning News, Uber currently employs approximately 200 people in the proposed Deep Ellum offices.
DiFurio also reported that the city of Dallas is expecting a payment of $ 25,000 to allow the company to repay the expenses, according to a memo written to city council members Eric Johnson, Dallas director of economic development and neighborhood services sent.
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