Starbucks set to get $30 million in state incentives for Nashville move
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Tennessee is preparing to give Starbucks $30 million in state government incentives in exchange for the coffee giant creating a corporate hub in downtown Nashville.
Why it matters: New information in a State Funding Board agenda is the first indication of the cost of bringing Starbucks' corporate offices to town.
Zoom in: The $30 million would be issued as an economic development grant, according to the agenda for the board's May 20 meeting. The board will need to vote to approve the grant.
Catch up quick: Starbucks plans to invest $100 million in its Nashville expansion, creating a major corporate hub that will bring 2,000 jobs to the area.
- Corporate leaders said building out a presence in Nashville was part of the company's broader plans to add more coffeehouses in the Southeast.
State of play: The company is opening a temporary office in The Gulch this month before moving into a permanent space in the Peabody Union complex in 2027, where it will occupy an entire building.
Driving the news: Starbucks expects to bring the jobs to Nashville over the next five years. They will include new roles, work brought in-house from contractors and some relocated teams.
- Some teams will move to Nashville from the global headquarters in Seattle.
What he's saying: In an oped published this week by the Wall Street Journal, former Starbucks CEO Howard Schultz tied the company's expansion in Tennessee to the state's more favorable business policies.
Between the lines: The Tennessee Department of Economic and Community Development collaborated with the Tennessee Valley Authority, the Nashville Area Chamber of Commerce and other agencies to bring Starbucks to Nashville.
What we're watching: Starbucks could be poised to get more than $30 million in incentives. Mayor Freddie O'Connell told the Tennessean this month that he is considering a separate city incentive deal.
- O'Connell didn't discuss dollar amounts, but he told the newspaper his goal was to make sure that existing residents would get a portion of the new corporate jobs.
- Any deal would require Metro Council approval.