Buena Vista trustees agree to continue talks with Kroger on tax‑sharing for proposed City Market relocation

Buena Vista trustees voted Tuesday to continue negotiations with Kroger over a proposed relocation of its City Market store and a request that the town share a portion of incremental sales tax to help close the project’s funding gap. The board directed staff to pursue financial details and return with analysis of impacts on town revenue, local businesses and housing.

The discussion centered on a Kroger presentation by Jose Cervantes, identified as the company’s real estate asset manager, who said the company is proposing to relocate its existing 20,000‑square‑foot Buena Vista store to a new site on the northwest corner of Crossman Avenue and Highway 24 and build “roughly [a] 60,000 square foot store.” Cervantes said the project would add services the present store lacks and estimated the total project investment at about $33,000,000.

“We are proposing a 75/25% split of this new incremental sales tax that our store will produce,” Cervantes said, adding the company would cap both the term and the amount and that the town would be asked to participate only on the incremental growth in sales tax, not the store’s current tax receipts. Cervantes said the project currently shows a budget gap of about $1,600,000 that Kroger hopes to close with a sales‑tax sharing agreement, and that the company would seek roughly a 10‑year term.

Kroger and staff also discussed other project elements: the new store would create roughly 60 additional jobs (Cervantes estimated annual incremental payroll at approximately $1,600,000, a total annual payroll afterward of about $5,000,000), and the project team described infrastructure work that would increase costs — a traffic signal on Highway 24 (Cervantes said it’s “roughly an $800,000 improvement”), underground detention and relocation or burial of utility lines. The company also said it expects to include a fuel station; Kroger’s presenter said fuel infrastructure costs for the site were lower than typical for their stations but still substantial (on the order of several million dollars).

Trustees and members of the public raised multiple concerns the board asked staff to study before any agreement: possible net effects on total town sales tax if some existing retailers lose business to a larger supermarket; the fiscal impact on town services (police, roads, parking) from a larger regional draw; the adequacy of housing for new employees; and whether the requested incentive is necessary for the project to proceed. Trustee remarks repeatedly urged staff to obtain Kroger’s gap analysis and documentation so the town can verify the financial need for public participation. Town attorney Jeff (identified in the record as the town’s attorney) advised that staff obtain the developer’s financial figures and explore other options before finalizing any deal.

The board adopted a motion to continue discussions and directed staff to negotiate with Kroger and return with more detailed fiscal analysis and proposed agreement terms. The motion passed on a voice vote.