Atlanta/ Real Estate & Development
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Published on March 29, 2024
Forsyth County's The Gathering Development in Limbo After Commissioners Amend AgreementSource: Google Street View

Fresh off what seemed to be a victory for The Gathering at South Forsyth development, the tide has quickly turned due to last-minute amendments by the Forsyth County Commissioners. Developers are now taking a step back to reassess the future of this multi-billion dollar endeavor. According to FOX 5 Atlanta, changes introduced to the Memorandum of Understanding (MOU) during the commissioners' meeting were not previously agreed upon, thus calling for additional legal review.

Despite securing a 4-1 vote from the board of commissioners to move the project forward, Vern Krause, President and CEO of Krause Sports and Entertainment, was left "shocked and extremely disappointed" by these unexpected alterations to the MOU. In a statement obtained by 11Alive, Krause detailed how the county's last-minute pivot complicates their plans to present a binding document to the NHL. "My team and I will review the changes to see if we can work toward finalization or end our efforts," Krause stated.

Two significant revisions made by the commissioners, as reported by both sources, include shifting the proposed 18,500-seat arena's construction from "Phase 1" to "Phase 2" of the project, alongside a mandate that 50% of the arena construction be completed before a certificate of occupancy can be issued for an additional 600 apartments. Another amendment requires over 500,000 square feet of office, hotel, and retail space to be built and ready to occupy before the issuance of a certificate for the first phase of 600 apartments. While the necessity of these changes has yet to be fully understood, it was clear that they were made swiftly and without prior consent from The Gathering's development team.

Supporters for The Gathering project claim it promises to revamp Forsyth County by creating a top-tier entertainment complex capable of hosting an NHL team—an attribute notably lacking in Georgia's media market. Seventeen residents vocalized their backing of the project during the meeting, as Krause mentioned the community's "overwhelming support," emphasizing that The Gathering is more than just another development; it's a potential cultural haven for generations to come. The project, aimed to be funded through a tax allocation district (TAD), intends to move forward without dipping into taxpayer pockets.

In response to the unfolding situation, Forsyth County relayed a statement to 11Alive, expressing a continued desire to work alongside Krause and his team to realize the entertainment hub. "We are very hopeful, as Mr. Krause and his team are as well, to make this vision for an entertainment hub and economic driver in Forsyth County a reality," the county maintained, underscoring a commitment to align the project with the best interests of residents and stakeholders. As of now, despite the affirmative vote and binding MOU, a final development agreement remains unsigned.

Atlanta-Real Estate & Development