STRATEGIC PRIORITY: Growing
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S):|910|DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
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SUBJECT
Title
Authorize the amendment and restatement of the Chapter 380 Economic Development Incentive, Real Property Tax Abatement, and Business Personal Property Tax Abatement Agreement ("Agreement") between the City of Dallas, The Kroger Co. ("Kroger"), and Ocado Solutions, USA ("Ocado"), previously authorized on August 28, 2019, by Resolution No. 19-1316, related to the development and operation of a new regional e-commerce grocery fulfillment center project ("Project") located at 4221 Telephone Road in the International Inland Port of Dallas, in accordance with the City of Dallas Economic Development Policy - Financing: No cost consideration to the City
Body
BACKGROUND
On August 28, 2019, in consideration of the Project, City Council authorized a tri-party Agreement with Kroger and Ocado, including:
1. up to 50% business personal property tax abatement on added applicable business personal property tax for a period of five years for Kroger and Ocado (depending on local hiring percentage);
2. up to 90% real property tax abatement on added applicable real property tax for a period of ten years for Kroger (depending on local hiring percentage); and
3. Chapter 380 economic development grant of $2,000,000.00 to offset the cost of public infrastructure improvements required at the Project site.
Under the tri-party Agreement, Kroger and Ocado were obligated to develop a 300,000 square foot grocery fulfillment center by December 31, 2022. The grocery fulfillment center celebrated its grand opening on July 28, 2022. Each party had their own job creation and wage requirements in the Agreement. Kroger has met and exceeded the minimum job creation requirement of 350 permanent full-time jobs and the average wage requirement of $41,750. Ocado h...
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