Last year, Uber announced a $36 million tax incentive deal with the city of Dallas in order to expand its operations. But the company failed to meet its promises, leading the city to lower its promised footprint by 25 percent and pull out of 3,000 jobs in the city. Now, it is ending the incentive deals with Dallas, citing the COVID-19 pandemic as the primary reason. The company's future plans in Dallas remain unclear.
Although the city aims to retain its existing employees, the impact of the pandemic has made some of its plans stalled. In Dallas alone, the number of technology degrees awarded each year increased by more than 100 percent. The company's presence is expected to inspire new generations of students and open up new doors for the business community. As an extension of the San Francisco-based company, Uber will elevate the city with its newfound influence on economic growth and the city's business community.
The city of Dallas had originally welcomed the move of Uber. It signed economic incentive agreements with the city and county to attract the company. The city council of Dallas approved a $9 million incentive package in August. The Dallas County commissioners offered a 50% tax abatement to Uber if it creates 2,500 jobs at an average salary of $100,000. In return, the city and county would receive a $24 million tax refund.
On top of all this, Uber has committed to build an office high-rise in Dallas with a total of four hundred and seventy thousand square feet and will open its doors in late 2022. During the pandemic, the company froze its hiring efforts but resumed hiring afterward. While Uber is still under construction, the company expects to be open for business in Dallas in late 2022. The company has received a two-year extension to meet economic incentive requirements in Dallas.
In addition to opening an office in Deep Ellum, Uber is looking to sublease a building on Pacific Avenue. The building has several features for offices, including lounge areas and conference facilities. As of last year, the company announced plans to expand its operations in Dallas, with 3,000 employees. The lease agreement between Uber and CBRE is for a five-year deal. There are two additional options: Uber will also be leasing office space in downtown Fort Worth.