Webinars
How The Gathering at South Forsyth Will Pay for Itself with No Tax on Residents
Recorded on Wednesday, October 2 at 6:30 p.m., on Zoom
This 30-minute webinar discussed the upcoming Forsyth County vote for Redevelopment Powers and the creation of a Tax Allocation District (TAD) on the ballot on November 5.
The event was hosted by Vernon Krause, CEO of Krause Sports and Entertainment, and developer of The Gathering at South Forsyth - a planned mixed-use development. Forsyth County District 5 Commissioner Laura Semanson and Forsyth Chamber of Commerce President and CEO, James McCoy, joined Mr. Krause for the webinar.
They discussed why a TAD is the best way for Forsyth County to pay back its committed investment to The Gathering project and how this is NOT A TAX on residents.
There were several questions posed during the webinar that primarily focused on professional hockey and increased traffic.
Want a Webinar Recap? Read below!
What will Forsyth County voters see on November 5?
The last referendum on the ballot will be about granting Redevelopment Powers to the County solely for the 100.3-acre proposed development called The Gathering at South Forsyth.
The ballot measure will read:
Shall the Act be approved which authorizes Forsyth County to exercise all redevelopment powers allowed under the ‘Redevelopment Powers Law,’ as it may be amended from time to time solely in the designated 100.3 acres of the property designated for ‘The Gathering at South Forsyth’ project?
- Yes
- No
What are Redevelopment Powers?
Redevelopment Powers are the authority granted to local governments (cities and counties) to promote economic development.
Redevelopment Powers have been used across the state in many communities to redevelop underused land – such as for The Atlanta Beltline and The Battery, where the Atlanta Braves play, and people live and work.
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).
Are there benefits to Redevelopment Powers and redeveloping the empty property?
Yes!
- Stimulates investment
- Revitalizes underused areas
- In this case, 100 acres that was supposed to be a regional mall and has sat empty for 15+ years providing negligible revenue for the County and its residents
- Provides employment opportunities and local job growth
- Creates social and cultural benefits for the County’s residents
- And much more
What is a Tax Allocation District?
The proposed Tax Allocation District (TAD), designated solely for the 100.3-acre development, permits the County to entirely fund its $225 million investment in The Gathering. This is achieved by directing all new property tax revenue generated within the development's limits towards repaying the County's investment.
After the County’s investment has been completely repaid (estimated to be within 12-15 years), all the revenue generated by the development, including property tax, sales tax, hotel/motel tax, and ticket fees, will benefit Forsyth County and Forsyth County Schools. This tax income is projected to be approximately $40 million each year.
While the property is being built, the County and school system will continue to receive property taxes.
Without a TAD, the County’s repayment options are more limited.
What does a YES vote mean?
It means residents WILL NOT BE TAXED.
It means the $225 million bond issued in support of the $4 billion project will be repaid through FUTURE TAXES generated on the 100-acre Gathering at South Forsyth property ONLY.
It means that once the bond is repaid, all subsequent tax revenue and fees (approximately $40 million per year) will be directed to the County. Furthermore, the County will own the $1 billion arena asset once it has opened.
A YES vote means the County’s investment in the project is entirely paid off by The Gathering and not Forsyth residents.
What does a NO vote mean?
A no vote DOES NOT MEAN THE PROJECT IS DEAD. It simply means the financial contribution will have to be repaid in a different way.
The Q&As from the Webinar are here:
Q: What is the likelihood of the NHL awarding a franchise to Georgia, and will the project move forward without a team?
Answer:
Based on two feasibility studies, one conducted by the developer, and one conducted by Forward Forsyth – the County’s economic development organization, the development and arena can be successful without a professional sports team.
We have communicated our fervent interest and continue to work with the County to have a completed deal that would be ready to begin, if the NHL decides to expand, and we are fortunate to be chosen. The NHL has acknowledged our interest and told us they would let us know when they are ready to consider expansion.
Q: How will the area handle the increased traffic where congestion is already an issue?
Answer:
Fortunately, this site was zoned and designed for a large regional mall with the ability to handle high volumes of daily traffic counts. There are multiple entrances and exits in and out of the site. A new interchange at McGinnis Ferry Road is under construction to help with the area’s mobility and the new Union Hill express lane from Georgia 400 will exit directly onto the site, as part of the Georgia DOT’s planned updates for the region. In addition, the site will be designed with rideshare in mind and will efficiently accommodate drop offs and pickups.
You can also visit the Forsyth County website for more information on Redevelopment Powers here.