To get taxpayer support, developer Vernon Krause still needs to acquire an NHL expansion franchise, even though league leaders have said they are not considering expansion at this time.
The $2 billion Gathering project is unprecedented in size for Forsyth, one of the fastest growing counties in the metropolitan area, with a large number of apartments, potential for public subsidies, high-net-worth residents and The promise of bringing metropolitan events to the tier is causing some heartburn. A conservative suburban enclave. Commissioner Todd Levent, the lone dissenting vote, warned his colleagues not to let their guard down in pursuit of professional sports.
“If you're putting out a shiny carrot to get all the hockey buzz, that's great,” Levent said. “But let's make sure we're protected and bite the bugs as soon as we see them so they don't snatch us.”
The new condition means the county was unable to obtain an amendment to state law that would have allowed Forsyth to create an arena authority to manage the facility, forcing it to instead rely on the county's existing development authority to issue bonds. partially reflects. However, the plan still includes the creation of Tax Allocation Districts (TADs), which, if approved by voters, would allow developers to leverage the development's newly created property taxes to finance their projects. It becomes like this.
This agreement is subject to final legal review prior to execution. This will allow the development team to proceed with zoning and allow construction to begin on the first phase. The first phase will include 600 apartments, a hotel, and at least 500,000 square feet of office and retail space. Krause's team also agreed to build a fire station and sheriff's station that would be connected to the county's trail network, and set aside 5% of the apartments being built at affordable rents for first responders and teachers. I also agreed.
“Now, as the NHL may consider expansion, we are more confident than ever that we have a concrete plan to present to the NHL for consideration,” Krause said in a statement.
fight for the pack
A development team led by Krause, who owns a network of auto dealerships, has worked out several details for the proposed 84-acre project along Union Hill Road near Georgia 400.
Consisting of four phases, the entire project is proposed to include a $700 million arena, 1.6 million square feet of office space, a total of 500 hotel rooms, and approximately 2,000 residential units, mostly apartments. I am.
Krause's group is one of two groups in metro Atlanta that are proposing plans for an arena and entertainment district anchored by an expanded NHL franchise. In Alpharetta, a group led by former NHL player Anson Carter is proposing a similar project at North Point Mall.
The NHL is not currently in expansion mode. If either developmental team acquires an NHL franchise, and that's a big assumption, it would be the third time the league attempts to bring top-level hockey operations to metro Atlanta, following the departures of the Flames and Thrashers. . Others, such as Houston and Salt Lake City, have yet to make their first NHL appearance.
The Gathering arena is planned as part of the second development phase. Once the arena is built, it will be transferred to the county and there will be no property taxes. The Gathering team agreed to pay $100,000 in annual rent. This is a 95% reduction from January's offer of $2 million a year. The county also receives $1.50 for each ticket sold at the arena.
Forward Forsyth, the county development authority, is not included in the memorandum of understanding, even though the board would have to agree to issue the bond.
Credit: Atlanta Regional Commission
Credit: Atlanta Regional Commission
Alex Warner, Forsyth's vice president of economic development, said the county would likely be structured to repay the debt over 20 years, requiring annual payments of $18 million to cover bond issuance fees. Stated. The county expects to repay the debt through increased hotel and motel tax collections, ticket sales and the creation of programs. Tad.
In theory, as a region develops, property tax increases within the TAD can be diverted to bond repayments. After the bonds are repaid, cities, counties, and schools benefit from new, higher property values.
Warner said Gathering teams could seek more public investment as the arena ages, similar to how Atlanta spent more than $142 million to renovate the facility now known as State Farm Arena. I was warned that it was highly sexual.
“A lot of the tax revenue benefits come as a result,” Warner said. “I feel like by the time I start feeling better, I'll get another question.”
“I won't get robbed.”
During the three-hour meeting, several Forsyth residents wearing hockey jerseys showed up in support of the project.
“All this time we've gone somewhere else to have fun and leave our money with them,” said Derek Brooks, a Forsyth native. “So I think it’s great that people from somewhere else have the opportunity to come to Forsyth County and have fun and leave money behind that will improve our community in the long term.”
Others criticized city residents having to travel to Atlanta to attend the event, saying it was their turn to wait in traffic along Georgia 400.
Credit: HYOSUB SHIN / AJC
Credit: HYOSUB SHIN / AJC
Commissioner Cindy Jones Mills tried to capitalize on Atlanta's crime concerns when she tried to get the Gathering team to promise to give the county $2.50 for each event ticket at the arena, but developers said it would be a competitive disadvantage.
“I don't see how you can become uncompetitive when the price per ticket is this high,” Mills said. “I don't have to go to downtown Atlanta. I mean, my wallet won't be stolen. I won't get mugged.”
Only a few residents opposed the project, concerned about the addition of more renters to a county dominated by homeowners and the potential financial risk to taxpayers if professional hockey came to town. It was very little.
“We're betting $225 million,” resident Brian Hughes said. “That's a lot of money.”