Franklin commission approves tax-exempt industrial revenue bonds for Kroger distribution center; one commissioner objects

The Franklin City Commission voted to approve an industrial revenue bond resolution tied to a Kroger distribution center project, enabling property tax exemptions during the bond term while the company remains responsible for the bonds.

Bond counsel Jim Parsons told the commission the transaction supports a roughly $400 million Kroger distribution and fulfillment center and said the company expects to create "approximately 430 jobs at a significant payroll here." Parsons described the bonds as the company’s obligation and not city debt and said the state has approved applicable incentives and Kroger has closed on the property.

Commissioner Stewart moved to approve the resolution and Commissioner Powell seconded. During the roll call, Commissioner Bush announced a no vote, saying, "I like Kroger as a company, but I just have a real problem with the way the last line ... it basically is a business inducement and tax mechanism for the company to save tax money." The motion passed with the recorded opposition from Commissioner Bush.

Supporters on the commission framed the bonds as a standard economic-development tool that will create local jobs and noted that payroll and other nonexempt taxes will still be paid. The bond counsel also noted a 100% payment to the local school district is expected during the term of the arrangement.

The commission’s approval moves the project forward administratively; the resolution authorizes the city to issue bonds up to the stated maximum and directs staff to complete closing steps. The commission did not change the authorized maximum amount or add conditions during the vote.