New York financial giant Goldman Sachs will place 5,000 workers in an office campus to be built just north of downtown Dallas.
City Council voted Wednesday to give Goldman Sachs and Dallas’ Hunt Realty more than $18 million in economic incentives to build the office project at 2323 North Field St. next to the Perot Museum.
The city council overwhelmingly supported the incentives.
“This is exactly the kind of business I think we should be investing in,” board member Cara Mendelsohn said. “For me, it’s an investment that makes sense.”
Council member Tennell Atkins said the support from Goldman Sachs will help the city’s future. “We don’t give away the store,” Atkins said. “We are trying to sell Dallas.”
Still, board member Paul Ridley questioned offering the global finance company millions of dollars in public funding.
“I don’t see the need for public support for a wealthy public company that’s heavily capitalized and doesn’t need that money to decide where they’re going to put their offices,” said Ridley, who ultimately voted for the proposal.
The Goldman Sachs campus would 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 Woodall Rodgers Freeway. The new buildings will be built around a 1.5 acre park.
Goldman Sach’s over 800,000 square foot office will be the anchor for the project.
The incentives granted by the city are a combination of economic subsidies and tax allowances. City Council agreed to give Goldman Sachs $4.375 million in grants and property and business tax abatements worth $13.644 million.
Goldman Sachs currently employs about 2,500 full-time permanent employees in Dallas, most of them working at the Trammell Crow Center on Ross Avenue.
“That’s 5,000 jobs – 2,500 kept here in the city and another 2,500 added,” said Robin Bentley, director of the Dallas Office of Economic Development.
Bentley said the city grant support amounts to about $800 per employee, “which is less than what we’ve offered for similar offerings.”
Workers will have an average annual base salary of at least $90,000.
“The types of jobs we are considering represent the full spectrum of headquarters services,” Bentley said. “All Goldman Sachs business divisions will be represented from the Dallas office.”
Goldman Sachs also considered Salt Lake City, Atlanta and South Florida for the office, according to the city’s economic development department. North Texas is already Goldman Sachs’ biggest job outside of New York.
The new office would be completed “no later than December 31, 2027”.
Along with job creation, city asks Goldman Sachs to “partner” with Paul Quinn College, University of Texas at Dallas and Dallas College to create workforce programs for internships and learnings.
Council member Gay Donnell Willis said the city should support projects such as Goldman Sachs’ new office.
“The idea of us sitting on our heels in a competitive world will make Dallas a loser,” she said. “The competition is so ready to step in and take projects away from us. Dallas is a winner.
Goldman Sachs representatives declined to comment on the planned Dallas office expansion.
The proposed Goldman Sachs office would cost more than $480 million, according to documents filed with the city. That would make it the costliest real estate project in downtown Dallas in decades.
The financial firm also has hundreds of employees at an office in the Richardson Telecom Corridor.
Goldman Sachs’ incentive program is one of the largest Dallas has ever had.
In 2019, California transportation company Uber received more than $9 million in city incentives to create 3,000 jobs in a new building in Dallas’ Deep Ellum neighborhood.
State, city and county officials have approved nearly $36 million in total economic incentives to bring Uber’s office to Dallas. But Uber dramatically scaled back the Dallas operation during the COVID-19 pandemic and lost the supporting millions.
Toyota North America received more than $8 million in incentives from Plano to move its North American headquarters from California. Toyota also received $40 million from the Texas Enterprise Fund for bringing 3,650 workers to the new headquarters in Plano.