Tampa developer sues Kroger over abandoned Lucky's Market in Clearwater
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Apr 3, 2020

A Tampa developer is suing grocery giant Kroger Co. over an abandoned Lucky's Market under construction in Clearwater.

Greenleaf Capital, which was redeveloping a former Albertsons box on Gulf to Bay Boulevard for Lucky's, on Wednesday sued Kroger to enforce its obligations under the lease guaranty agreement, seeking damages in excess of $75,000.

It is also asking the court to rule that Kroger must deliver on everything outlined in the lease, from finishing construction to obtaining a certificate of occupancy and providing labor and manufacturer warranties, among other things.

Cincinnati-based Kroger Co. in 2016 entered a partnership with Lucky's, an organic grocer that specialized in affordable, private label products. In December 2019, Kroger divested from Lucky's, and by late January Lucky's had filed for Chapter 11 bankruptcy protection.

Greenleaf signed a lease with Lucky's for the Clearwater location in June 2018. When Kroger terminated its investment in Lucky's, Greenleaf alleges, "Lucky’s Market issued a stop work order to its general contractor assigned to the project, which resulted in the abandonment of the project in an unfinished and hazardous condition."

Kroger, according to the lawsuit, guaranteed the lease terms, including "prompt payment" of "all sums payable" and "every one of the terms, conditions and covenants of the lease."

Representatives from Greenleaf and Kroger were not immediately available for comment Friday.

When the work stoppage was ordered, Greenleaf says, the grocery store's roof, walls and floor slab of the structure weren't finished, and the property was exposed to the elements.

When Greenleaf raised those concerns, it says in the suit, representatives from Lucky's Market said they would secure the site. But the lawsuit alleges that as of its filing, neither Kroger nor Lucky's has moved to secure the site or finish construction.

The general contractor, Snyder Construction Inc., has since filed a $900,000 claim of lien against the property.