The city of Groveland has officially received a $1.46 million refund from The Kroger Co. following the company’s decision to shut down its grocery fulfillment center and exit the Florida delivery market.
The refund is a result of a breach of contract regarding the economic incentives Kroger received to build its 350,000-square-foot facility at Ford Commerce Park, which opened in June 2021.
Why was the refund issued?
Under the original agreement, Kroger committed to maintaining at least 60 jobs with a specific average annual payroll for 15 years. However, in November 2025, Kroger announced it would close the facility by February 1, 2026, and lay off over 900 employees. Because the company failed to meet the long-term job requirements, the city moved to claw back 100% of the incentives provided.
Breakdown of the $1.46 Million
The total amount returned to the city is precisely $1,460,233.49, which consists of:
- Building Permit Fees: $755,737.76 (previously waived)
- Impact Fees: $390,603.36 (previously waived)
- Ad Valorem Tax Rebates: $209,892.37 (refunded for 2022–2024)
- Job Growth Incentives: $104,000.00
How will the funds be used?
As of March 2026, Groveland city leaders are evaluating the best way to utilize the windfall. While the city initially set the funds aside, recent council discussions have focused on two primary paths:
- Infrastructure Upgrades: Accelerating planned city projects, such as road repairs and utility improvements.
- Debt Reduction: Paying down existing municipal debt to improve the city’s long-term financial health.
- Community Improvements: Investing in parks or public safety enhancements that were previously on the back burner.
Broader Impact
Beyond the refund to the city, Kroger also reached a termination agreement with Lake County, returning over $460,000 in county-level incentives. The closure has significantly impacted the local workforce, leading to job fairs and the reallocation of some incentive funds toward retraining programs for the approximately 1,400 affected employees across Florida