Ballot Initiative: Tax Allocation District (TAD) for The Gathering

If passed, this ballot initiative gives Forsyth County the authority to create a Tax Allocation District (TAD) for the proposed development known as The Gathering at South Forsyth, the site of a potential National Hockey League team with an arena, retail and commercial space, hotels and apartments located on 100 undeveloped acres in south Forsyth County at the intersection of Union Hill and Ronald Reagan Boulevard.

The County is proposing to issue $225 million in bonds to help fund the building of the ice arena and the bonds are paid off by property taxes collected inside the development that would normally go to the County and Forsyth County School (FCS). 

Things to Consider When You Vote

• The deal is contingent on getting the NHL franchise and approval of the TAD will facilitate negotiations with the NHL and will not result in increased property taxes for county residents living outside of the TAD designated area.
• Beneficial for the county in collecting sales tax income, including SPLOST, property taxes, and eventual ownership of the arena – a $1billion facility for the cost of $225 million in bonds.
• FCS will be made whole for any costs of students attending schools in the district from The Gathering, will receive 10 acres and $3 million to fund a Career, Technical and Agricultural Education school (CTAE), will collect any SPLOSTs income and more.
• The Battery in Cobb County is an example of a TAD.
• We at The Kicker have local interest in the economic and development success of Forsyth County and believe the TAD and The Gathering as it is currently envisioned is a net positive for our community.

The Deep Dive

The TAD ballot initiative is backed by HB 1488. 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).

Forsyth County will provide $225 million funding via revenue bonds issued by the Development Authority, for the arena.  Paydown of the bonds comes from the collection from the property taxes from the commercial and residential entities within the defined area of The Gathering, excluding the arena.
  
The majority of property taxes collected to pay for the bonds come from what Forsyth County Schools (FCS) would normally receive, so it was important to get agreement from the school district which has its own set of terms.

The Deal Negotiated with the County and the BOE/FCS

​In return for giving up the property taxes collected from residential and commercial property within The Gathering to pay for the  bonds, the County and FCS agreed to the following:

• FCS participation in providing funding for the bonds is contingent on the approval of the TAD or PILOT Payments;
• FCS and the County will continue to receive the property taxes they receive on the current undeveloped land, which for FCS is approximately $90,000;
• FCS will be reimbursed for the cost of education for each student that is not funded by state or federal funds as long as the bonds are outstanding;
• FCS will get 10 acres for $10 on which to build a Career, Technical and Agricultural Education school (CTAE) and The Gathering will provide instructional pathways and education opportunities to students in the Development. The Gathering will contribute $3 million to the construction costs within 12 months of receipt of the bond proceeds;
• FCS will have access to the arena for graduation ceremonies at no rent;
• 5% of the multi-family rental units in The Gathering will be reserved for County Public Safety (Sheriff and Fire Department) and FCS employees (estimated to be 90 units) at a 40% discount to the market rental rate and a waiver of security deposits and fees;
• When the bonds are completely paid off, the County will own the arena, estimated to be valued at $1 billion and all property taxes will then be collected for the benefit of the County and FCS;
• Forsyth County and FCS will continue to collect sales taxes within The Gathering which will not go towards paying back the bond. FCS are estimated to receive an additional $2-$3million per year due to this new development, The Gathering.