City Seeks Reimbursement for Breached Agreement
The city of Groveland has initiated a claim against The Kroger Co., demanding reimbursement exceeding $1.4 million. This action follows allegations that Kroger failed to fulfill contractual obligations tied to its grocery distribution facility at Ford Commerce Park.
Job Commitment Not Met
According to the city, Kroger entered into an incentive agreement requiring the maintenance of at least 60 positions with an average annual payroll of $3.6 million for a 15-year period at the 350,000-square-foot center. The facility commenced operations in June 2021.
However, Kroger disclosed plans on November 18 to shut down the distribution center. This closure will result in the termination of 935 on-site workers and an additional 500 employees across Florida by February 1, 2026.
Financial Details of the Claim
Groveland is seeking a specific reimbursement of $1,460,233.49. This sum comprises a $104,000 job growth incentive, a $104,000 ad valorem tax rebate, and nearly $1.1 million in waived impact and permit fees. Due to the planned closure, Kroger will also be ineligible for incentives scheduled for 2025.
The city has set a deadline of January 30, 2026, for Kroger to repay the total amount. Failure to comply by this date may lead to further legal measures.
Related Discussions with Technology Partner
Ocado Solutions USA Inc., Kroger's technology collaborator at the site, received its own incentive package valued at approximately $802,917. City officials are currently engaged in discussions with Ocado representatives regarding this agreement, though the results of these talks are not yet determined.
