A $30 million state grant to support Starbucks' Nashville corporate office was scrutinized during an Industrial Development Board meeting Sept. 9, with board members raising concerns about the company's jobs commitment, contract timeline, treatment of workers and other concerns.
Earlier this year, Starbucks announced its plan to invest $100 million and create up to 2,000 corporate jobs in Nashville as part of a strategic office expansion beyond Seattle.
"Starbucks has proudly been part of Nashville and communities across Tennessee for more than two decades," Starbucks Director of Strategic Communications Betsy McManus told The Tennessean after the board meeting.
"We continue to focus on creating quality, local jobs in Tennessee, with competitive
pay, industry-leading benefits, and opportunities for partners to grow at Starbucks, while driving local impact through our coffeehouses."
The Industrial Development Board did not play a role in crafting the Tennessee Department of Economic and Community Development's incentive package. But all similar TDECD-approved grants pass through the local industrial development board, Board Chair Nigel Hodge explained during the Sept. 9 meeting.
Board member Tequila Johnson said she received dozens of calls from Nashvillians, including Starbucks baristas, concerned about the deal because of stalled contract negotiations with unionized and the company's history of unfair labor practice allegations. Johnson said she is trying to understand the situation from all perspectives but is ultimately accountable to the public.
"My feet are in the shoes of the workers right now," Johnson said, during the meeting. "They seem to be treated a little unfairly. I had about 50 calls from people."
Johnson was one of three board members who voted against the measure, which passed with four votes in favor and Chair Hodge abstaining from the vote.
Starbucks' plans to create a corporate office in Nashville have become politicized in recent months, with Metro Nashville Council memberscalling on the company to negotiate fairly with workers and Tennessee lawmakers pointing to company's Southern expansion for political talking points.
In August, Starbucks confirmed it would lay off more than 100 workers who refused to relocate to Nashville during the company's restructuring. That prompted further discussion comparing Tennessee's political environment, business friendliness and cost of living to that of Seattle, Washington, where the company was founded and maintains its corporate headquarters.
Meanwhile, an incentive package for Starbucks sponsored by Nashville coffers is still not off the table. Nashville Mayor Freddie O'Connell told The Tennessean in May that his office was weighing the possibility of offering incentives to the company but declined to provide further details about what that could look like.
Any potential deal would mark a notable shift for O'Connell, who has so far avoided cash-per-job incentives as Nashville weighs how to attract high-paying jobs without squeezing local businesses. Furthermore, a deal would need approval from Metro Council.
James Weaver, a lobbyist who spoke on behalf of Starbucks at the board meeting, said representatives of the company have met with around 32 of Nashville's 40 council members to discuss the establishment of the new office and answer any questions they may have.
"We've been very intentional about meeting with council member after council member," he said. "We have three more tomorrow."
District 3 Metro Council member Jennifer Gamble spoke in favor of the state-sponsored grant during the public comment period of the meeting.
"I believe that Starbucks continues to demonstrate its commitment to social and corporate responsibility across the country, and this project reinforces Nashville's position as a place where major employers choose to grow and invest."
Molly Davis covers growth and development in Nashville and assists with special projects. You can email her with comments, questions and tips at mmdavis@tennessean.com.
This article originally appeared on Nashville Tennessean: Nashville board approves Starbucks grant after heated debate
