Groveland City Council members voted unanimously this week to pursue more than $1.4 million in incentive repayments from The Kroger Co., citing the company’s failure to meet job creation requirements tied to the establishment of its grocery distribution center at Ford Commerce Park.
Under an incentive agreement approved by the city, Kroger committed to building and operating a 350,000-square-foot distribution facility that would create and maintain at least 60 jobs for a 15-year period, with an average annual payroll of $3.6 million. City officials now say Kroger is in default of that agreement, triggering a full reimbursement of incentives already received.
As a result, Kroger must repay all per-job incentives and ad valorem tax rebates issued for tax years 2022 through 2024, along with the value of impact fees and building permit fees waived by the city as part of the deal. Kroger is also ineligible for incentive or rebate payments for tax year 2025.
The city has set a refund deadline of January 30, 2026.
Breakdown of Kroger Repayment Request:
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Job Growth Incentive: $104,000.00
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Ad Valorem Tax Rebates: $209,892.37
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Impact Fees Waived: $390,603.36
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Building Permit Fees Waived: $755,737.76
Total Requested from Kroger: $1,460,233.49
Kroger’s technology partner, Ocado Solutions USA Inc., also received an incentive package tied to the project. To date, Ocado has received the following payments:
Ocado Incentives Received:
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Job Growth Incentive: $60,000.00
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Ad Valorem Tax Rebates: $742,917.10
Total Received by Ocado: $802,917.10
City officials confirmed that discussions with Ocado representatives are ongoing regarding potential repayment or resolution.
The Kroger distribution center opened in June 2021, bringing significant employment to the area. However, on November 18, 2025, Kroger announced plans to close the Groveland facility, laying off 935 on-site employees and an additional 500 employees across Florida by February 1, 2026.
City leaders emphasized that the incentive program was designed to ensure long-term economic benefits for Groveland and that enforcing repayment provisions is necessary to protect taxpayer interests when contractual obligations are not met.
