The City Council on Wednesday voted unanimously to approve an economic incentive package aimed at bringing an online grocery fulfillment center to southern Dallas.
Kroger Co. and Ocado Solutions USA Inc. sought the deal for a proposed 350,000-square-foot robotic grocery fulfillment center on a 55-acre site the northwest corner of Telephone and Bonnie View roads. The facility would make at-home grocery delivery available to all Dallas households, as the delivery radius of the facility is up to five hours. Kroger has also committed that it will not redline or exclude any neighborhood in Dallas from receiving grocery delivery.
Dallas Mayor Eric Johnson said the council’s vote “will send a message that the City is tech-savvy and open for business in the 21st century.”
“This deal represents a big step forward for southern Dallas, and I’m hopeful it can be a transformative partnership for our entire City,” Mayor Johnson said.
As part of the deal, the City would include a nomination for designation as a Texas Enterprise Zone project, property tax abatements and $2 million in 2012 economic development bond funds meant to offset public improvements required at the site.
The incentives are tied to multiple requirements, including the creation of at least 410 jobs and a workforce that includes Dallas residents. The council’s agreement included provisions that Kroger will pay a $15 minimum wage.
The deal also requires Kroger to participate as an industry partner with Dallas ISD and Richardson ISD P-TECH programs; meet with Paul Quinn College, University of North Texas at Dallas, and Cedar Valley to discuss workforce collaborations; review southern Dallas for a potential new retail store site; and determine, within 24 months, whether a remodel of its existing Wynnewood Village store will be completed.
Over 10 years, Kroger estimated that the taxable sales from the fulfillment center will total approximately $460 million, meaning a sales tax payment to the City of approximately $500,000 each year.
“I believe we are offering a robust, detailed and competitive incentive package, and I commend the staff, my council colleagues and Kroger and Ocado for their work on it,” Mayor Johnson said. It would provide for hundreds of jobs that pay living wages. It would reward the hiring of Dallas residents. It would bring hundreds of thousands of dollars back to the City for services for our residents every year. And it would facilitate community engagement with our higher education institutions.”
If the project moves forward as planned, the City expects the facility to open in 2023.
