Goodyear, Arizona to honor Nike plant commitment as governor withdraws incentives
The mayor of Goodyear, Arizona, on Tuesday said the city would honor its agreement with Nike on a new manufacturing plant, despite state Gov. Doug Ducey’s decision to pull financial incentives after the brand canceled a “Betsy Ross flag” sneaker launch.
City officials approved a deal this week that called for Nike to build a manufacturing plant that would create more than 500 jobs with an average salary of more than $48,000. In exchange, Goodyear agreed to waive up to $1 million in review fees and reimburse an additional $1 million for jobs created, according to local reports. Arizona’s state commerce authority, which falls under the governor’s jurisdiction, was set to deliver an additional $1 million in incentives.
The deal is in doubt after Ducey withdrew the incentives to protest Nike’s decision to nix the sneaker’s release out of concerns that the flag’s inclusion could offend some customers. Despite the governor’s decision, Mayor Georgia Lord said city incentives for the Nike plant were still active.
“We will honor the commitment we made in our agreement,” Lord said in a video statement obtained by the Arizona Republic. “It has been a focus of Goodyear City Council to build a strong economy for years to come, and we will continue to work hard to bring the kind of high quality jobs that our residents deserve.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 76.51 | -0.16 | -0.21% |
The “Betsy Ross flag” is a 13-star design that dates back to the Revolutionary War. The Wall Street Journal reported that Colin Kaepernick, a Nike endorser, told company executives that the flag was offensive because it hailed from an era where slavery was legal.
Nike said it still intends to build a new manufacturing plant, but the company did not say if it would be located in Goodyear as previously planned.
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“Nike is a company proud of its American heritage and our continuing engagement supporting thousands of American athletes including the US Olympic team and US Soccer teams,” the company said. “We already employ 35,000 people in the U.S. and remain committed to creating jobs in the U.S., including a significant investment in an additional manufacturing center which will create 500 new jobs.”