Alpharetta and Fulton County are working on financial safeguards as the North Fulton city pursues a new NHL franchise.
Fulton County will participate in Alpharetta’s tax allocation district supporting the proposed redevelopment of the nearly 100-acre North Point Mall site, which would include an NHL arena. The county’s commitment to the nearly $3 billion project is contingent on Alpharetta securing the new professional team.
Fulton County commissioners voted unanimously Wednesday approving an intergovernmental agreement for the Alpharetta TAD. The county is committing up to $192.4 million in future property tax revenue to support the redevelopment project.
The county’s role in the project is contingent on Alpharetta securing an NHL franchise.
Alpharetta is competing with Forsyth County, where a similar project, The Gathering at South Forsyth, is planned. Houston and Austin, Texas, and Phoenix, Arizona, are also reported as potential NHL expansion markets. In national conversations about the expansion, the North Georgia market is generally referred to as Atlanta.
If Alpharetta secures a franchise, developer Jamestown would transform the North Fulton mall property into a mixed-use sports and entertainment district anchored by a 20,000-seat arena.
The proposed redevelopment project includes 565,000-square feet of restaurants and retail, 750,000 square feet of office space, a hotel, performing arts center, and nearly 1400 apartment units.
North Point Mall opened in 1993 and is owned by New York Life.
The TAD, which Alpharetta established last December, has a maximum term of 30 years. Future property tax revenue available through the TAD will help fund infrastructure projects.
“If no NHL team is awarded, then this TAD no longer will exist,” Commissioner Bob Ellis said during the meeting.
North Point Mall is located in the district represented by Commissioner Bridget Thorne, who said securing an NHL franchise in Alpharetta would benefit all of Fulton County.
Officials in both Alpharetta and Fulton County voiced concerns about protecting tax revenues if Alpharetta fails to secure an NHL franchise or if a team subsequently relocates before bonds financing the redevelopment are repaid.
Commissioner Dana Barrett questioned whether Fulton County would recover its contributed tax increments if the project failed to move forward. She also sought clarification on whether county funds could be spent on preliminary redevelopment expenses before a franchise is secured.
Under the agreement, Fulton County’s participation would automatically terminate if construction does not begin by Dec. 31, 2030, unless the county approves an extension or waives the deadline. Alpharetta would be required to return any remaining county tax increments that have not already been committed to eligible redevelopment costs, pledged to bonds or reserved for specified financial obligations.
Alpharetta approved its participation in the intergovernmental agreement Monday. During the city council meeting, Councilman John Hipes asked about the city’s financial exposure if an NHL team relocates before bonds issued to finance the project are repaid.
Alpharetta City Administrator Chris Lagerbloom said the agreement anticipates requiring an NHL franchise to commit to playing in the arena for at least as long as the longest bond repayment period. A future agreement would include financial penalties intended to pay off outstanding bonds if the team leaves prematurely, he said.
“Hope that doesn’t happen but there are protections to make sure we aren’t stuck with an arena and there is no team in it, and we have a whole bunch of debt,” Lagerbloom said.
Fulton’s proposed contribution would be combined with an estimated $109 million from Alpharetta and $185.3 million from Fulton County Schools, bringing the potential total contribution to TAD financing to $486 million over the life of tax allocation district.
