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LAKE COUNTY, Fla. - Kroger signed a termination agreement with Lake County, in which the company will reimburse over $400,000 to the county by the end of the year.
What we know:
Under an agreement between Kroger and Lake County, the grocery company will reimburse the county $460,714.53 by Dec. 31, 2025. This amount represents the incentive and impact fee rebates received for tax years 2022–2024, a Lake County Dec. 5 press release said.
Additionally, Kroger will forgo its 2025 incentive and rebate payments, the county said.
The backstory:
This agreement comes after Kroger announced in November that it would close three of its Kroger Delivery fulfillment centers in three cities, including one in Groveland.
Kroger said the decision to close these centers was due to them not meeting the company's financial expectations. It follows previous closures in South Florida, effectively ending Kroger Delivery in much, if not all, of the state.
According to notices filed with the state, most of Kroger's employees in Rockledge, Tampa, Jacksonville, Groveland will be let go from the company on Feb. 1. That means 1,403 people in these four facilities will lose their jobs.
On Dec. 2, the Lake County Board of Commissioners voted to terminate its agreements with Kroger and Ocado Group, following Kroger's November announcement that it would close three of its fulfillment facilities, including the one in Groveland, Florida.
As part of that decision, county leaders said it would keep the $400,000 tax incentive for Kroger and redirect it to help those employees impacted by the upcoming closure. Leaders also said they will also make an effort to collect the tax incentives awarded to Kroger from 2022-2024, totaling $1.3 million.
Under the agreement:
- Lake County will keep the 2025 tax incentive ($400,000)
- That money will be redirected to other areas: $40,000 towards road improvements, $360,000 in workforce support programs
- County hopes to get reimbursed for the $1.3M in incentives awarded to Kroger in 2022, 2023, and 2024.
Lake County said the $360,000 would be used to "provide retraining, upskilling, and job-placement services" towards those impacted by the closure. The county plans to work with CareerSource of Florida to oversee education opportunities at Lake Technical College, Lake-Sumter State College, and other local organizations.
What's next:
Once the funds are returned, the Board of County Commissioners will determine how they will be used.
The Source: Information in this story was sourced from a Lake County press release.