Nashville mayor: Oracle to bring 8500 jobs, $1.2B investment

Officials in Tennessee say the Texas-based Oracle Corporation plans to bring 8,500 jobs and a $1.2 billion investment to Nashville over coming years

Via AP news wire
Thursday 15 April 2021 00:02
Economic Development Tennessee
Economic Development Tennessee

Oracle Corporation plans to bring 8,500 jobs and a $1.2 billion investment to fast-growing Nashville over the coming decade, a deal Mayor John Cooper s office announced Wednesday as unprecedented in the history of Tennessee economic development projects.

Cooper's office said the Austin Texas-based computer technology company requested a public hearing for its economic impact plan with the Metro Industrial Development Board. That board and the Metro Council would need to finalize the deal. According to documents provided by Cooper's office, the project would create 2,500 jobs in Nashville by the end of 2027, reaching the full 8,500 by the end of 2031, with an average salary of $110,000.

Oracle's plans for a campus with 1.2 million square feet (nearly 111,500 square meters) of office space along the East Bank of the Cumberland River would surpass those of Amazon, which in 2018 announced it would bring 5,000 jobs through a $230 million investment in a new operations hub in Nashville.

“We are thrilled that Oracle is ready to make a billion-dollar bet on Nashville,” Cooper said in a news release. “Oracle will bring a record number of high-paying jobs to Nashville and they will pay upfront all the city’s infrastructure costs. This is a huge win for our city."

Oracle plans to buy the land and offer $175 million upfront for public infrastructure, including a pedestrian bridge over the Cumberland River, environmental cleanup, a sewer pump station and a riverfront park, the mayor's office said.

Half of Oracle's future property taxes — which the company estimates will be roughly $18 million annually when the project is fully built — would reimburse the company for the upfront investment, without interest payments, with the other half going into the city's general operating fund, Cooper's office said.

The company also expects the project to produce about $8.8 million annually in local sales and use taxes, according to the mayor's office.

In a statement, Oracle said it's meeting demand for its cloud product by building “new digital hubs in cities with well-educated workforces and vibrant cultures that draw top-tier talent.”

"We think Nashville has tremendous potential to be Oracle’s next success, and we look forward to working with city and state officials as the process moves forward,” the company said.

The city's proposal even drew praise from The Beacon Center of Tennessee, a free-market thinktank that has long scrutinized Nashville's approach to economic incentive deals.

“Based on initial reports of the deal’s structure, we applaud the mayor for doing things differently and in a way that does not cost taxpayers money," Beacon Center CEO Justin Owen said in a statement.

State officials have not yet said how much they expect to contribute to the deal.

The announcement shows the Democratic-leaning capital city remains in high demand for companies, even as Republicans leading the state continue to move bills on divisive social issues that have faced corporate opposition, including ones that target the LGBT community.

In recent years, a number of high-profile companies, including Amazon, have penned letters of opposition to Tennessee bills that center on LGBT people. Some ultimately became law, including this year's ban on transgender athletes in public middle school and high school sports.

Joe Woolley, CEO of Nashville’s LGBT Chamber of Commerce, said his group looks forward to working with Oracle on diversity and inclusion initiatives, noting the company's perfect score on the Human Rights Campaign Equality Index.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in