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A $2 million expansion of a Publix warehouse facility near the Polk Parkway is moving forward with conditions — in order to reap the benefits of eight years of tax exemptions, the grocery store chain that employs over 16,000 workers in Lakeland must add 10 full-time positions and safeguard flood-prone areas.
The expansion will add two facilities to the west Lakeland warehouse on County Line Road:
- A 403,871-square-foot produce warehouse with truck loading bays on both sides
- A 63,022-square-foot return center to process and recycle merchandise
Lakeland officials approved an updated site plan for the location on Oct. 27. The approval came with conditions involving stormwater management, floodplain protections, and pedestrian access along Allen K. Breed Highway, according to the city’s review documents.
Expanding a major distribution hub
In October 2023, Publix purchased 137.6 acres formerly occupied by Key Safety Systems, an automotive supplier, for $8.25 million.
Lakeland commissioners unanimously approved the expansion in February 2024, incorporating the newly acquired property into a distribution campus encompassing approximately 406 acres.
Gray Construction Inc. of Kentucky is listed as the produce center’s general contractor. City permits put the value at approximately $200 million: $159 million for the produce warehouse, $17.5 million for the return center, and $23.5 million for site work.
LkldNow reached out to Publix regarding the expected completion date and how many new positions the expansion may create but a spokesperson said she had no information to share at this early stage.
Managing traffic and flood risks
Among the conditions attached to the project are safeguards for flood-prone areas, including requirements for construction sequencing, stormwater storage, and drainage improvements.
Chuck Barmby, Lakeland’s urban planning and transportation manager, said the new facilities will be accessible from Allen K. Breed Highway and through the existing County Line Road warehouse complex. The project follows zoning approved in 2024 and administratively amended Oct. 20.
A traffic study commissioned by Publix examined the expansion’s effects on County Line Road, Allen K. Breed Highway, and intersections near the Polk Parkway, factoring in traffic to and from Interstate 4.
The report, revised in January 2024, projected 846 additional vehicle trips on an average weekday and concluded that no additional road capacity would be needed.
County tax breaks and city incentives
Lakeland economic development official Jason Willey confirmed to LkldNow that the warehouse expansion is known as “Project Harvest,” which received an eight-year property-tax exemption from Polk County commissioners in August 2023.
The exemption covers 60% of the assessed value of qualifying improvements and equipment, excluding land. Publix committed to invest at least $125 million. Polk County estimated a $747,566 revenue loss if the exemption applied in 2023.
Because of construction delays, county commissioners amended the agreement in May 2026, shifting the eight-year exemption to 2028 through 2035. The revised terms require at least 10 new full-time Polk County jobs paying a $63,978 average annual wage.
Separately, Willey said Lakeland approved a 50% reduction in city development impact fees through its Economic Development Impact Fee Mitigation program. The reduction applies only to city fire, transportation, and law enforcement fees, not water and wastewater fees or any Polk County impact fees.
Publix by the numbers
Publix employs 16,537 people in Lakeland, making it the city’s largest employer, according to the Lakeland Economic Development Council. The company, considered the nation’s largest employee-owned business, has more than 260,000 employees throughout its operations.
The grocery chain operates 10 primary distribution centers serving supermarkets across eight southeastern states, including seven distribution centers in Florida. Publix reported $62.7 billion in sales during 2025, an increase of 5% over the previous year.
However, sales growth has slowed for four consecutive quarters. The company’s most recent quarterly report showed revenue increasing just 1% while comparable-store sales declined 0.5%.
Third-quarter results are expected in early November.
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