Chandler working on agreement with Allstate for 2,500 jobs
PHOENIX – Chandler city leaders are close to sealing a deal with insurance giant Allstate that would could create as many as 2,500 job at a new operations center within five years.
A recommendation that Mayor Jay Tibshraeny and the city council authorize the development agreement was discussed at a study session Monday. The facility would be near Loops 101 and 202.
“We seem poised to grow our insurance and financial services employment base, with a world-renowned Fortune 100 company in one of our target industries,” Tibshraeny said in a statement to KTAR News 92.3 FM.
“Chandler’s strong workforce and available office space continue to make the city a desirable location for these highly sought-after companies.”
The resolution was scheduled for a vote at Thursday’s regular meeting.
The development agreement noted that up to 4,000 jobs could be available with more expansion.
A lengthy memo outlined that the payroll at the operations center would be more than $102 million a year. But before that Chandler will reimburse Allstate up to $1.476 million on “hiring, training, relocation and related expenses.”
The city said if any of the new positions paid $65,000 or more a year, it would reimburse Allstate $600 for each qualifying job. The hires would have to be among the first group of 2,500.
The insurance company has leased 217,000 square feet at two sites in the East Valley city.
Chandler was in the running for the center along with two other unnamed Valley cities, the memo said, and Boise, Idaho.
Discussions between the two began in early 2017, according to the public document.
The Phoenix Business Journal reported Allstate will be spending about $27.7 million in “leases, tenant improvements and other expenses over an eight-year period.”