Dallas has successfully enticed Koya Medical Inc. to relocate its headquarters from Oakland, California.
This development, driven by a newly introduced framework for business incentives around the city, hopes to bring more substantial economic growth to the Dallas-Fort Worth area.
Koya Medical, a key player in the medical device industry known for its compression devices, will set up its new headquarters in a 35,000-square-foot building at 2332 and 2340 Valdina Street, close to the Design District, according to a report from Dallas Business Journal.
This relocation comes as a direct result of Dallas’ revamped incentive program, which allows for “administrative action” incentives, streamlining the process for smaller-scale business grants.
The Dallas City Council’s updated economic development framework, approved in January 2023, was designed to ease the process of awarding incentives for smaller businesses and to attract investment in underdeveloped areas, particularly southern Dallas, as previously reported by The Dallas Express.
Under this new plan, Koya Medical is eligible for a grant of up to $350,000. The grant is contingent upon the company meeting specific criteria, including investment and job creation quotas.
Koya Medical’s planned investment in the new space is estimated at approximately $1.7 million by the end of 2028. The company, which specializes in compression devices to treat venous diseases and lymphedema, will house its corporate offices at the new location and conduct “light assembly operations,” fulfillment, distribution, and research and development, reported Dallas Business Journal.
According to a memo dated August 2, Koya Medical’s move is projected to retain seven existing Dallas-based jobs, bring ten additional employees from out-of-state, and generate 220 new positions by the end of 2029. These new jobs are expected to have a minimum average annual salary of $62,400. The grant will be disbursed in two phases: $175,000 upon verification of tenant improvements and another $175,000 upon meeting job creation milestones and local hiring requirements.
In addition to Koya Medical’s expansion, Dallas has also approved incentives for Presidential Concepts LLC. This company will convert a 59,742-square-foot building at 1499 Regal Row into a state-of-the-art commercial kitchen facility. The $9 million investment includes significant property improvements and construction, with the project expected to be completed by December 2025. Presidential Concepts is set to benefit from a decade of property tax abatements as part of the deal, reported Dallas Business Journal.
These “administrative action” incentives are part of Dallas’s broader strategy to boost growth in economically distressed areas.
The Texas Enterprise Program helps identify target zones where poverty rates exceed 20%, and incentives are designed to spur growth in these regions. Companies operating in these areas, as well as certified minority- and women-owned businesses, are eligible for streamlined incentives valued up to $1 million, according to Dallas Business Journal.
Koya’s move to Dallas reflects a broader growing interest in companies moving their headquarters to Texas.
As previously reported by The Dallas Express, Elon Musk has revealed plans to move the headquarters of both SpaceX and X from California to Texas, citing political differences and the pursuit of a more favorable business climate. He detailed this decision in a series of online posts in July.
“This is the Final Straw, “ Musk posted on X. “Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas,” he added.
Musk also confirmed that X, the platform he acquired as “Twitter” in 2022 for $44 billion, will also be relocating to Austin, Texas.