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$1.1 million approved in city economic development grants for Kroger, Ocado
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$1.1 million approved in city economic development grants for Kroger, Ocado

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Kroger

Ocado Solutions USA, Inc. is expected to add an additional $50 million in investment to the Kroger Fulfillment Center development.

The Concord City Council approved $1,139,870 in Economic Development Incentive Grants for the Kroger Fulfillment Center coming to Concord.

In December 2021, Gov. Roy Cooper, along with Cabarrus Economic Development Corporation, announced that Kroger Co. will build a high-tech customer fulfillment center in Concord, bringing 692 new jobs with an average wage of $42,107, which is above the county average.

The Cabarrus EDC later announced that Ocado Solutions USA, Inc., a technology and automation company for online grocery stores, will also bring added investment and 30 new jobs with an average wage of $60,000.

The combined investment of Kroger and Ocado is projected to be close to $137 million, much higher than the initial $92 million projected. This is due to Ocado’s added investment. The project is expected to be in operation in 2023.

Kroger received a Job Development Investment Grant (JDI grant) approved by the state’s Economic Investment Committee. Over the 12-year term of the grant, the project is estimated to grow the state’s economy by $820.8 million. The JDIG agreement authorizes the potential reimbursement to the company of up to $2.3 million, spread over 12 years. Ocado did not qualify for a state JDI grant.

The city council approved contracts for a three year, 85% tax based Economic Development Incentive Grant for Kroger Fulfillment Network, LLC and Ocado Solutions USA, Inc.

Kroger’s proposed investment represents a total $89 million investment in real and personal property such as furniture, balers, lifts, totes, material handling equipment and technology infrastructure. The total value of the city’s three year grant is estimated to equal $791,846 dependent on the actual investment. After the incentive payments, the city will collect a three-year net revenue of $139,738.

Ocado’s proposed investment represents an estimated total of about $50 million investment in personal property related to proprietary robotics equipment and the supporting technology infrastructure grid at the project facility. The city’s three-year grant will total to $348,024 dependent on the actual investment, and the city will collect a net revenue of $61,416 after the incentive payments.

The 200,000-square-foot robotically automated fulfilment center will be located at 227 Highway 49 S.

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