New York-based financial giant Goldman Sachs will house 5,000 workers in an office complex to be built north of downtown Dallas.
City Council on Wednesday voted to give Goldman Sachs and Dallas’ Hunt Realty more than $18 million in economic stimulus to build the office project at 2323 North Field St., next to the Perot Museum.
The city council strongly supported the incentive.
Council member Kara Mendelsohn said, “This is exactly the kind of company I think we should be investing in.” “To me it’s an investment that makes sense.”
Council member Tenell Atkins said backing Goldman Sachs will shape the future of the city. “We’re not giving up shop,” Atkins said. “We’re trying to sell Dallas.”
Still, council member Paul Ridley questioned the global financial firm’s offer of millions in public funding.
“I don’t see the need for public support for a wealthy public corporation that is highly capitalized and doesn’t need this money to decide where they’re going to locate their offices,” Ridley said. Voted for the motion.
The Goldman Sachs campus will be part of Hunt Realty’s 11-acre North End development located between Victory Park and Uptown.
Plans for the mixed-use project include office, residential and hotel towers and retail space just north of the Woodl Rodgers Freeway. The new buildings will be constructed around a 1.5-acre park.
The Goldman Sachs office of over 800,000 square feet will handle the project.
City-sanctioned incentives are a combination of economic subsidies and tax exemptions. City Council agreed to grant Goldman Sachs $4.375 million and a property and business tax exemption, valued at $13.644 million.
Goldman Sachs currently employs approximately 2,500 full-time permanent employees in Dallas, most of whom are working at the Trammell Crow Center on Ross Avenue.
“That’s 5,000 jobs — 2,500 are retained here in the city and another 2,500 have been added,” said Robin Bentley, director of the Dallas Office of Economic Development.
Bentley said Citi Grant support is about $800 per employee, “which is less than what we’ve offered on similar deals.”
Workers would have an average annual base salary of at least $90,000.
“The types of jobs we’re looking at are the full spectrum of headquarters services,” Bentley said. “All divisions of the Goldman Sachs business will be represented from the Dallas office.”
According to the city’s Department of Economic Development, Goldman Sachs also considered Salt Lake City, Atlanta and South Florida for office. North Texas is already Goldman Sachs’ largest employer outside of New York.
The new office will be completed “no later than December 31, 2027”.
In addition to job creation, the city is asking Goldman Sachs to “partner” with Paul Quinn College, the University of Texas at Dallas and Dallas College to create workforce programs for internships and apprenticeships.
Council member Gay Donnell Willis said the city has to support projects such as the new Goldman Sachs office.
“The notion of sitting back on our heels in a competitive world would make Dallas a loser,” she said. “The competition is ready to step up and take the projects away from us. Dallas is a winner.”
Representatives for Goldman Sachs have declined to comment on the planned expansion of the Dallas office.
According to filings with the city, the proposed Goldman Sachs office would cost more than $480 million. This would make it the most expensive real estate project in Central Dallas in decades.
There are also hundreds of employees of the financial firm in an office in Richardson’s telecoms corridor.
Goldman Sachs’ stimulus package is Dallas’ biggest ever.
In 2019, California-based transportation firm Uber received more than $9 million in city incentives to bring 3,000 jobs to a new building in Dallas’s Deep Ellum neighborhood.
State, city and county officials approved approximately $36 million in total economic incentives to move Uber’s office to Dallas. But Uber significantly scaled down its Dallas operation during the COVID-19 pandemic and forfeited the support of millions.
Toyota North America received over $8 million in incentives from Plano to move its North American headquarters from California. Toyota also received $40 million from the Texas Enterprise Fund to move 3,650 employees to the new headquarters in Plano.