Nike officials have decided to expand their headquarters in Washington County, rather than break new ground in Portland.
Nike says putting up two new buildings on different parts of its campus near Beaverton is more cost-effective than the deal Portland offered in the South Waterfront area.
Nike spokeswoman Mary Remuzzi says the company is expanding its office space by a half-million square feet.
Oregon lawmakers convened a special session late last year for the purpose of approving a deal to help Nike expand.
The deal gives Nike tax assurances, so long as the multinational invests at least $150 million in its headquarters expansion, and it adds at least 500 employees.
Spokeswoman Remuzzi says the company will meet those requirements, but wouldn't go into details.
Governor John Kitzhaber and area congresswoman Suzanne Bonamici both issued statements applauding Nike's announcement.
A city of Portland press release expressed disappointment that Nike won't build in South Waterfront but relief that the headquarters will be as close as Washington County.
This story originally appeared on Oregon Public Broadcasting.