ATHENS-A grocery store plans to locate in western Athens on Elm Street, meeting a demand expressed by residents on
that side of the city.
On Monday, the Athens City Council approved an economic development project agreement with Food City.
The grocery store chain said the project will create approximately 200 new jobs and include an investment of
$19,585,000. The project is anticipated to generate $23 million in annual taxable sales.
The Council approved an incentive for Food City. The City will collect annual sales tax generated by the store
and reimburse it annually for 10 years or until $2.4 million is paid.
Food City will be at Elm Street and Lucas Ferry Road. The project will include street improvements in that area.
Mayor Ronnie Marks said the eastern side of Athens, which has the most population and access to major
thoroughfares like U.S. 31 and I-65, sees the majority of new retail growth. Residents in western Athens have
asked about retail opportunities in their part of the city.
“This project presented us with the opportunity to address a need in that part of our city and grow our sales tax
base,” Marks said. “More than 40 percent of our city budget is from sales tax so growing our sales tax base is a
priority. We have to grow it in order to hire more responders, buy more garbage trucks, do paving projects,
improve outdoor recreation and other services.”
K-VA-T Food Stores, Inc., the corporate banner for the Food City supermarket chain, is an acronym for its
original service area of Kentucky, Virginia and Tennessee. The privately held, family-owned company has grown
over the years by expansion, new store construction and acquisitions.
The Food City banner dates back to 1918, with a store in Greeneville, Tenn. Today, the company spans five
states, operating 150 retail outlets throughout southeast Kentucky, southwest Virginia, east Tennessee, north
Georgia and Alabama.
