No Free Refills: The Starbucks Clawback Clause
☕️ Starbucks clawback clause · Burkley Allen enters vice mayor race · Metro's $16M trash-truck deal draws federal scrutiny · Much more!
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Note on Upcoming Events For the next two months, our standard event schedule will divert from the standard third Thursday pattern. We have a lot on offer for you and are excited to share more in the coming days.
If you still crave our company, we'll be doing a Happy Hour at Von Elrod's on Thursday, September 17th @ 5:30 PM. Our normal candence will resume in November.
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The state has a backup plan if Starbucks falls short.
From Megan Podsiedlik
Despite some pushback during public comment, Metro’s Industrial Development Board narrowly approved the state’s $30 million FastTrack economic development grant for Starbucks during today's meeting. When complete, Starbuck's new regional headquarters will be in Nashville. The $100 million investment in Music City involves a 250,000 square feet build out at Peabody Union.
“These are state of Tennessee dollars. They are not Metro dollars," clarified James Weaver, a partner at Holland & Knight representing Starbucks. “This is not an appropriation by the Metro Council. This is not a grant being awarded by the mayor’s office. This is not a grant being awarded by the metropolitan government.”
The Agreement The state’s FastTrack grant comes with a clawback clause tied to the company’s commitment to create 2,000 corporate jobs over five years. Those jobs don’t have to go exclusively to existing Tennessee residents. Instead, positions filled by workers recruited locally or relocated from outside the state count. It’s also worth mentioning that the jobs aren’t retail positions like barista jobs. Starbucks will be bringing corporate jobs with weighted-average salaries of about $125,000 per year. If the commitment is fulfilled, the state will have invested roughly $15,000 per new job created.
The Clawback The grant comes with a 10-year accountability period, during which Starbucks must report its job numbers annually and maintain its employment commitments. The clawback provision allows the state to recover some or all of the grant money if Starbucks falls short.
If the coffee giant creates less than 50 percent of the promised jobs, it will have to pay the entire incentive back to the state. If only 50-90 percent of the jobs are created, it will owe a proportionate amount of the money back. Even after Starbucks reaches 2,000 jobs, it must maintain them through the end of the accountability period or risk repayment.
Investment in Permanent Infrastructure Starbucks can only use the state's $30 million grant as reimbursement for eligible construction and build-out costs, rather than getting an upfront cash payment that can be used toward anything. Only permanent infrastructure and construction can be reimbursed by the grant dollars. “Starbucks agreed to make these commitments and agreed to the accountability requirements that accompany that support, including reporting obligations, performance standards, and clawbacks,” said Weaver.
✹ THE ARCHITECTURE OF OUR GLORY
Back to Our Roots We're sponsoring an event with the Meriwether Academy as they host Justin Shubow to speak about how beauty, civic architecture, and public design shape American culture and identity. Shubow is president of the National Civic Art Society and a former chairman of the U.S. Commission of Fine Arts, best known for championing classical and traditional architecture in American public life. For gentlemen only. Buy Tickets.
HEADLINES
- 🗳️ Burkley Allen enters vice mayor race. Councilmember Burkley Allen is officially running for vice mayor in 2027, joining fellow councilmembers Zulfat Suara and Kyonzté Toombs in what is already shaping up to be a competitive race. Allen has served on the Metro Council for 15 years, including leadership roles on the Budget and Planning committees, and is expected to make her experience a central part of her pitch. Incumbent Vice Mayor Angie Henderson has not yet said whether she will seek another term. (Axios)
- 🚛 Metro's $16M trash-truck deal draws federal scrutiny. Metro paid more than $16 million to Cumberland Capital for 14 trash trucks after the city's primary trash hauler went bankrupt in 2021, despite initially budgeting about $3 million for the first year of the emergency arrangement. The deal involved developer Mack McClung, then-Metro Water Services Assistant Director John Honeysucker and engineer/land planner Roy Dale. All three are now subjects of an ongoing federal investigation. (Banner)
- 🏮 Zoolumination canceled over visa denials. Nashville Zoo has canceled its 2026 Zoolumination Festival of Lights after visa applications for artisans with China's InLight Festival Group were denied, preventing the team from traveling from Zigong, China, to Nashville. The group has worked with the zoo since 2019 and provided the specialized lantern craftsmanship behind the event, which has been billed as the largest lantern festival in the U.S. (Post)
✹ PAMPHLETEER TOOLS
Pamphleteer Tools Council Watch tells you who funds your councilmember and how they vote. The Property Tax Calculator tells you what that cost you.
DATA
DEVELOPMENT
- Permit issued related to 33-story Hilton Signia tower to rise at Nashville Yards (Post)
THINGS TO DO
View our calendar for the week here.
📅 Visit our On The Radar list to find upcoming events around Nashville.
🎧 On Spotify: Pamphleteer's Picks, a playlist of our favorite bands in town this week.
👨🏻🌾 Check out our Nashville farmer's market guide.
TONIGHT
🎸 Roger Daltrey @ Ryman Auditorium, 7p, $102, Info
🥁 Jack Silverman @ Vinyl Tap, 7p, Free, Info
+ jazz guitarist
🪕 Songs & Stories by Larry Cordle & Friends @ Station Inn, 8p, Info
💀 Tennessee Dead @ Tennessee Brew Works, 6p, Info
🎸 Kelley's Heroes @ Robert's Western World, 6:30p, Free, Info
🎸 The Cowpokes @ Robert's Western World, 10:30p, Free, Info
🪕 Bluegrass Night @ The American Legion Post 82, 7p, Free, Info
📰 Check out the full newsletter archive here.
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Today's newsletter is brought to you by Davis Hunt, Megan Podsiedlik, and Camelia Brennan.