FORSYTH COUNTY, Ga. — Less than a day after the Forsyth County Board of Commissioners voted to approve a binding Memorandum of Understanding between the county and the developers of a multi-billion dollar proposed entertainment hub, there are now some questions about whether it will move forward.
Developers of The Gathering at South Forsyth said they are "re-evaluating" the project based on last-minute changes that were made by the county commissioners, according to a spokesperson for the proposed development.
This comes after the board of commissioners voted 4-1 on Tuesday to approve the binding agreement, allowing the proposed $2 billion-plus entertainment district and arena project aimed at bringing an NHL team back to Georgia to move forward.
However, in a release sent out by The Gathering team on Wednesday, it explained that the changes were made to the Memorandum of Understanding (MOU) that were not originally agreed to by the county team, which had been empowered to negotiate.
"I was quite frankly shocked and extremely disappointed by the last-minute changes after intense negotiations over the past few months – let alone the past year and half since I purchased the property. My team and I will review the changes to see if we can work toward finalization or end our efforts," said Vernon Krause, the president and CEO of Krause Sports and Entertainment and project owner. "The goal continues to be to strike a deal that is beneficial to the county, its residents – of which I am one – and Krause Sports and Entertainment, and present a solid plan to the NHL for consideration as they ponder possible expansion. However, the County cannot keep moving the goal line if that is to happen."
In the statement, The Gathering team said that the goal for Tuesday night's meeting was to "bring a binding MOU with firm commitments for both financing and planning to the NHL." While the county commission voted yes to move the project forward, developers with The Gathering said the MOU that was approved did not meet the goal they had outlined and further attorney review is now required in order for the MOU to be signed.
Changes made by county commissioners to The Gathering's original MOU
The county commissioners were seen editing the MOU outlined by The Gathering development team during the latter half of Tuesday night's meeting. The changes that were made are as follows:
1) Original MOU: "Phase 1" of the project includes: 600 multifamily units (apartments), office, hotel and retail space, and an 18,500-seat arena
Changes made by the commission: Require more than 500,000 square feet of office, hotel and retail space to be built and ready to occupy before a certificate of occupancy could be issued for a first phase of 600 apartments.
2) Original MOU: "Phase 2" includes 600 more multifamily units, in addition to more hotel, retail and office space (arena was part of Phase 1 but the commission moved it to Phase 2)
Changes made by the commission: Require 50% of the arena construction to be completed before a certificate of occupancy could be issued for the second phase of 600 apartments.
It's unclear if The Gathering development team is against both of these changes or just one of them.
It appears that the commission made these changes and almost immediately voted 4-1 to advance. The Gathering team did not get a chance to speak publicly after the changes were made because the vote happened in such a quick manner.
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In a statement sent to 11Alive by The Gathering, a spokesperson said that the team "hopes there will be more negotiations between the two sides."
11Alive also received a statement from Forsyth County in response to what the The Gathering team said, which reads:
"The county has enjoyed working in partnership with Mr. Krause and his team on this project. 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. Throughout the process and negotiations, County commissioners and staff have been striving to ensure the development and any subsequent county investment aligns with what is best for our residents, stakeholders, and the strategic vision for the county’s future. We feel confident that the agreement approved by the board last night accomplishes this and we are hopeful to continue toward making the development a reality."
Despite a binding MOU agreement, 11Alive learned that there has still been nothing signed by the developers.