GROVELAND, Fla. — Groveland City is seeking more than $1.4 million from The Kroger Co. over an alleged breach of contract concerning a grocery distribution center at Ford Commerce Park.
This week, the Groveland City Council unanimously decided to pursue reimbursement from Kroger after the company allegedly did not uphold its commitment to maintain at least 60 jobs with an average annual payroll of $3.6 million at the 350,000-square-foot facility. This requirement was to be met for 15 years as per their incentive agreement.
The city asserts that Kroger is in breach of the agreement and is required to return all incentives received so far.
The Kroger distribution center opened in June 2021, with an agreement that focused on job creation as a key condition for receiving financial support. However, Kroger announced plans to close the facility on Nov. 18, leading to layoffs for 935 on-site employees and an additional 500 in Florida by Feb. 1, 2026.
Groveland seeks $ 1,460,233.49 reimbursement for incentives including a $ 104,000 job growth incentive, $104,000 ad valorem tax rebate, and nearly $ 1.1 million in waived impact and permit fees. Kroger is ineligible for 2025 incentives due to closing the facility.
Kroger’s technology partner, Ocado Solutions USA Inc., was awarded its own incentive package. Ongoing discussions with Ocado officials are underway, with the company receiving approximately $802,917 in incentives related to the agreement. However, the outcome of these discussions remains uncertain.
The city has established a deadline of January 30, 2026, for Kroger to settle the total amount owed. Should no repayment be received by this date, the city has indicated its intention to pursue further legal actions.
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