Groveland Demands $1.4M Refund from Kroger After Fulfillment Center Closure

GROVELAND, Fla. — Groveland City Council unanimously voted on Dec. 19, 2025, to demand Kroger repay more than $1.4 million in incentives, including per-job payments and ad valorem tax rebates for 2022-2024, plus waived impact and building permit fees, according to a city statement. The 350,000-square-foot facility at Ford Commerce Park, which opened in June 2021, was required under the agreement to maintain at least 60 jobs with a $3.6 million annual payroll for 15 years. City officials declared Kroger in default after the company shuttered the site in January 2026, citing failure to meet financial expectations in a Nov. 18, 2025, announcement. Kroger's decision closed three automated Customer Fulfillment Centers (CFCs) nationwide, including Groveland, Pleasant Prairie, Wisconsin, and Frederick, Maryland, as part of optimizing its e-commerce network for $400 million in projected 2026 profits, per the company's statement filed with state notices. The Groveland closure led to layoffs effective Feb. 1, 2026, affecting an estimated 1,000 to 1,400 employees, many local residents commuting via State Road 50 or U.S. 27. Lake County, which provided $1.3 million in incentives, secured a termination agreement for Kroger to repay $460,714.53 by Dec. 31, 2025, as confirmed in county commission records. Groveland set a Jan. 30, 2026, deadline for full repayment in its council resolution, withholding 2025 incentives. The move equates to an economic blow for Lake County, described by Commissioner Josh Blake as a 'natural disaster' in economic terms, eliminating $1.3 million in expected revenue. The city is partnering with Lake County Economic Development and CareerSource Central Florida to connect workers to jobs, with residents urged to call 2-1-1 for Heart of Florida United Way assistance. This closure contrasts with Florida's robust job market, where the April 2026 unemployment rate hit 2.8%, the lowest in over a decade, driven by tourism and tech growth, per state labor department data. As the I-4 Ultimate project nears 90% completion, improving commutes for Orlando-to-Groveland drivers, local leaders emphasize resilience amid broader economic tailwinds like the $120 billion state budget with $2 billion in property tax relief.