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What Will the Ballot Language Say?

The ballot will likely be in the following form:

What are Redevelopment Powers?

Redevelopment powers refer to the authority granted to local governments (cities and counties) to promote economic development in specially defined areas called Tax Allocation Districts (TADs). These powers are governed by the Redevelopment Powers Law, which was adopted by the General Assembly in 1985.

Georgia's Redevelopment Powers Law allows cities and counties to sell bonds to finance infrastructure and other redevelopment costs within a specially defined area also known as a tax allocation district (TAD). Many communities across Georgia have successfully enacted and used this economic development tool.

Key aspects of redevelopment powers in Georgia include:

Tax Allocation Districts (TADs): Local governments can use the increased property tax revenue in these districts to fund redevelopment projects.

Approval by Referendum: The use of TADs must be authorized by a voter referendum in the local community.

These powers enable local governments to stimulate economic growth and improve the overall quality of life in their communities.

So, what is a Tax Allocation District (TAD)?

- A Tax Allocation District (“TAD”) is NOT a tax.

- A TAD would allow the County to fully pay for its $225 million contribution to The Gathering by “allocation” of all the new property tax revenue generated by the development’s 100.3-acre site.

- Once the TAD has provided for the repayment of the County’s contribution (projected to be 12-15 years), all the property tax revenue generated by the development (estimated at $40 million annually) will go to Forsyth County and Forsyth County Schools.

- Without a TAD, the County’s repayment options are more limited and costly.

- The proposed TAD can only be used for the development’s 100.3-acre site, and no other property or projects within the County.

- So, a vote for the TAD effectively allows for The Gathering development to “pay for itself.”

How Does a TAD Work?

A TAD works by using future tax revenue generated from increased property values within a specific district – in this case The Gathering's 100-acre footprint only - to finance current infrastructure and development projects.

This tool allows development companies like Krause Sports and Entertainment to invest more in the community for projects like The Gathering at South Forsyth — taking on responsibility without putting any risk on the residents.

What is the purpose of a TAD?

When a TAD is created, the State Department of Revenue sets the “base value” for the district. The base value is the assessed value before any redevelopment investment occurs. Any property tax revenue growth resulting from an increase in property values above the base value is collected in a special fund and used for redevelopment costs in the TAD. Only property taxes generated by the incremental increase in the values of these properties are available for use by the TAD. Creation of a TAD does not reduce or redirect any property taxes currently being collected in the district. The purpose is to spur redevelopment activity and only use new tax revenues to pay for redevelopment costs.

As public improvements and private investment take place on the property within a TAD, the taxable value of that property increases. Increased property values lead to increased property tax revenues. The county collects those additional revenues and then uses those increased property tax collections to pay back the costs of the infrastructure or other district redevelopment costs.

The Gathering at South Forsyth is estimated to cost $3 billion, including a $1 billion state of the art arena, with Krause Sports and Entertainment assuming the vast majority of the cost. After the arena is complete, the County will own the $1 billion arena asset.

Will the Proposed Tax Allocation District Lead to an Increase in Taxes?

NO! A TAD is not an additional tax on Forsyth County property owners. Rather, it is a powerful redevelopment tool that will allow the County to completely fund its $225 million portion of the $1 billion arena project; a project that promises to unlock the potential of Forsyth, without placing any financial burden on the general fund.

It allows for fiscally responsible development. Residents can rest assured that the establishment of a TAD does not result in higher taxes. It expands the tax base, which should help to keep future taxes lower. In fact, a TAD leverages the incremental tax revenue from rising property values within the specific district (The Gathering at South Forsyth's footprint only) to finance improvements — creating a self-sustaining cycle of growth.

TADs are a tried-and-true tool for fostering sustainable development, used successfully here in Georgia for projects including Atlantic Station’s redevelopment of a former steel mill, where the investment of $1.6 billion in private money created increased property tax revenue that funded $200 million in public investment. Other well-known TADs include the Atlanta Beltline and the revitalization of Atlanta’s Westside, as well as communities across the country.

In addition, the school board will continue to receive the property taxes it currently collects on the base value, as well as its share of sales taxes generated from the developed property.

What Are the Benefits?

Stimulates Investment: A Tax Allocation District is not an additional tax on Forsyth County property owners. TADs are a redevelopment tool that help to attract private investment, like from Krause Sports and Entertainment for The Gathering at South Forsyth, by using future tax revenue generated in a specific defined area increases to finance current infrastructure and development projects. TADs encourage developers, not residents, to take a risk to invest in areas they might otherwise overlook.

Revitalizes Underused Areas: TADs focus on redeveloping underutilized areas, turning them into thriving commercial, residential or mixed-use spaces that enhance the community’s overall appeal. The 80-acre site where The Gathering is proposed was slated for a regional mall more than 15 years ago. Since then, that property has sat empty and produced minimal revenue for the county to use.

Employment Opportunities: A development within a TAD leads to job creation, both during the construction phase and once businesses and services are established. Forsyth County’s own feasibility study estimated that The Gathering at South Forsyth would create 11,000 construction jobs and 7,000 permanent jobs – most of which would be filled by county residents.

Local Workforce Growth: New businesses often prefer to hire locally, which helps to drive economic growth and impact.

No Tax Increases: TADs do not require tax increases. Instead, they use the incremental tax revenue generated by increased property values within the district to finance improvements.

Self-Sustaining Growth: The mechanism of using future tax revenue for current projects creates a self-sustaining cycle of growth, reducing the need for public funding and is a common tool used in communities in Georgia and throughout the U.S.

Social and Cultural Benefits: New developments provide added social infrastructure that enriches the community. In the case of The Gathering at South Forsyth, the goal is to create the entertainment hub of North Georgia with an arena designed for a range of entertainment – from concerts to professional sporting events – in addition to a variety of dining and shopping experiences, and connection to green spaces and the Big Creek Greenway.

Property Value Appreciation: A rising tide lifts all boats. As the area within a TAD improves, property values typically rise, benefiting property owners and increasing the wealth within the community.

Smart Growth: Higher property values and improved amenities make the area more attractive and often lead to population wealth, increased area visitors and a more vibrant community.

Long-Term Vision: TADs are typically part of a broader, long-term development strategy, helping communities plan for sustainable growth and prosperity over time.

Community-Driven Development: The establishment of a TAD in South Forsyth requires a vote of YES on the ballot on November 5, 2024.