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GROVELAND, Fla. – On Friday, Groveland officials declared their intention to reclaim over $1.4 million from Kroger following the shutdown of its fulfillment center.
The city council, in a unanimous decision, resolved to demand the repayment, setting a firm deadline of January 30, 2026, for Kroger to return the incentives provided for establishing the grocery distribution hub at Ford Commerce Park.
Back in mid-November, Kroger revealed plans to shut down its facility and cease delivery operations across Florida by February 1.
[SEE PREVIOUS COVERAGE BELOW]
The agreement between Kroger and the city outlined that the 350,000-square-foot center was expected to not only create but also sustain a minimum of 60 jobs over 15 years, with an average annual payroll reaching $3.6 million.
“The city says Kroger is in default of its agreement and must reimburse all incentives received to date, including per-job incentives and ad valorem tax rebates for tax years 2022-2024,” the city said in a release.
The city said the breakdown of the over $1.4 million is as follows:
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Job Growth Incentive = $104,000.00
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Ad Valorem Tax Rebate = $209,892.37
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Value of Impact Fees = $390,603.36
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Value of Building Permit Fees = $755,737.76
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Total = $1,460,233.49
Groveland officials said there are discussions with Kroger’s technology partner, Ocado Solutions USA Inc., who also received an incentive package and received the following incentive payments:
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Job Growth Incentive = $60,000.00
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Ad Valorem Tax Rebate = $742,917.10
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Total = $802,917.10
This comes after Kroger agreed to a termination deal with the Lake County government and reimburse the county $460,714.53 by Dec. 31.
The county had provided more than $1.3 million in incentives to Kroger and Ocado to support the facility, which employs some 1,000 people who are expected to be laid off. Once the funds are returned, the county commission will figure out what to do with that money.
[WATCH BELOW: Lake County approves Kroger termination agreement]
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