In 2012, Oregon State and Nike Inc. struck a deal. In exchange for tax breaks from the state, Nike was required to spend at least $150 million and create 500 jobs. The deal was struck in order to prevent Nike from moving its headquarters.
Last week, Nike’s general counsel informed Gov. Kate Brown that the sportswear corporation has spent $380 million to date on the expansion of its Washington County headquarters — more than double what Nike was required to spend.
Furthermore, Nike says that exceeded the other requirement — creating 500 jobs — by hiring 2,000 workers since making the deal. (Of course, that does not mean the firm retained all the workers, only that it hired them.)
“Nike made a promise to Oregon and not only kept but exceeded that promise,” said Gov. Brown, in a statement. “These projects do more than expand Nike as a business, creating hundreds more jobs for Oregonians, it is emblematic of Nike’s commitment to Oregon as its home.”
The deal was made by former Gov. John Kitzhaber during an extraordinary special session of the Legislature in December of 2012. It was viewed by some as controversial, according to the Portland Business Journal.
In 2014, Nike filed plans for two commercial office buildings and two parking garages, further growing the already enormous 341-acre campus. These projects would add 1.3 million square feet of office space and 2,400 parking spaces. A third garage is possible, according to the Portland Business Journal.
“Our overall campus design plan will support Nike’s future growth and create an even better workplace for our employees,” said Nike general counsel Hilary Krane in a letter to the governor.
“Accordingly, while Nike has undertaken a great deal of work related to the qualifying investment to date, a significant amount of work remains to be done. As that work continues, it is expected that Nike’s presence will continue to have an increasing positive economic impact on the state.”
Let’s not forget that Nike posted a record $30.6 billion in fiscal sales this year.
Source: Portland Business Journal
This is why the economy broke in half, deals like this are great for corporations, not for actual Americans.
True that. Corporations are so big — Nike is so big — that the President of the US asks Nike to produce shoes in America again. CEO says, “Maybe.” As a consolation gift, hands Obama the MTM pack.
So as an Oregonian that’s been here since birth, can I get a Nike pass to the employee store cause you know, gotta keep the revenue in state
Haha if only man