Kroger Project Update

June 26, 2017

Facts:

The following are some relevant facts regarding Kroger’s decision to not build a store in Colonial Heights and the old courthouse property:

• Kroger issued the following media statement regarding their decision to not build the store in Colonial Heights:

"After careful thought, we have decided that our planned Colonial Heights store will not move forward to the construction phase. We understand that our decision to not build the Colonial Heights store may seem confusing or cause frustration and we sincerely apologize to those who anticipated our store opening.  Our company has made a decision to focus our efforts on improving the customer experience at existing stores through renovations and innovative technology.

We have truly enjoyed working with the City of Colonial Heights and the entire community over the past few years. Kroger will work closely with the City of Colonial Heights to help find a new, viable tenant for the property and cover the cost of demolishing the courthouse. Thank you for your patience.”

• This was a Kroger business decision, not a decision by the City of Colonial Heights.
• The City did everything it reasonably could do to have the store constructed, and City officials are disappointed with Kroger’s decision.
• Kroger will market the property to sell, but the City has to provide written consent for who purchases the property.
• Under the City’s agreement with Kroger, the City does have the option to purchase the property back from Kroger (this option has not been exercised at this time).
• Kroger will demolish the old courthouse building, at no cost to the City.