Dallas Offers Scotiabank $5M Incentives Package for Uptown Hub

Dallas is dangling one of its richest incentive packages in years to land a Canadian banking giant.

The Bank of Nova Scotia — or Scotiabank — one of Canada’s “Big Five,” is weighing a 10- to 15-year lease for roughly 100,000 square feet in Hillwood’s Victory Commons One, at 2601 Victory Avenue in Uptown Dallas, the Dallas Business Journal reported. The Toronto-based bank is considering relocating or creating more than 1,000 jobs as part of the move, which would significantly expand its U.S. presence. Charlotte is also in the running, city documents show.

To tip the scales, Dallas has lined up nearly $5 million in incentives, including a 10-year business personal property tax abatement valued at $831,000, plus up to $2.7 million in economic development grants tied to job creation and permitting costs. The city also pledged to nominate Scotiabank for Texas Enterprise Zone status, which could unlock another $1.25 million in state sales tax refunds. If approved by Dallas City Council this week, the package would be among Dallas’ largest since its $18 million award to Goldman Sachs last year for its 800,000-square-foot campus now under construction near Uptown.

Scotiabank’s potential Uptown lease would give the bank a regional hub in a market that has become a magnet for financial firms. JPMorgan, Charles Schwab and Wells Fargo have also upped their North Texas presence in recent years, and boosters have dubbed the migration “Y’all Street.” Texas’ lack of personal and corporate income taxes, newly established business courts and deep labor pool give it an edge over rival hubs. John Boyd Jr., a Florida-based site selection consultant, said Dallas’ central location, air connectivity and concentration of Fortune 500 headquarters likely make it the frontrunner over Charlotte.

Founded in 1832, Scotiabank has long operated in North America but has a relatively modest U.S. presence. Its main U.S. office is in New York, though none of its locations operate as a U.S. “headquarters” for the bank, with smaller outposts in Houston and San Francisco. A Dallas lease would mark a significant expansion of its wholesale banking, global business payments and wealth management units. Scotiabank does not provide retail or consumer deposit accounts or cash services in the U.S.

Should the deal go through, construction could begin before year’s end, with Scotiabank becoming the latest global financial player to bet on Uptown. For Dallas, it would be another high-profile win reinforcing the city’s ambitions to rival Wall Street as a financial center.

— Eric Weilbacher