Performing Arts Center Bond Referendum

The City Council has empowered the voters to decide if the City should issue general obligation bonds to fund the construction of a performing arts center.

The bond referendum question will read:

Shall the City of Johns Creek issue general obligation bonds in an aggregate principal amount not to exceed $40,000,000 for the purpose of (i) funding the construction, installation, and equipping of a Performing Arts Center, and (ii) paying the costs and expenses related to such bonded indebtedness?

Voters will select a “yes” or “no” response.

The bond referendum question will appear on the ballot as part of the regularly scheduled municipal election on November 4, 2025.

The proposed performing arts center is anticipated to include an approximately 800-seat performance hall and a multi-purpose room that will, in combination, support both performances as well as meetings and gatherings for a true multi-purpose venue.

The proposed performing arts center is anticipated to be at XX,XXX square feet building with a multi-level performance hall.

The 800-seat performance hall will have a stage and seating anticipated to support symphony, chorale, dance, theater, live music, and amplified music.

The multipurpose room is anticipated to support smaller performances as well as other events such as banquets, receptions, donor events, meetings, pre- and post-performance receptions, and presentations.

The City Council has determined that the performing arts center will be located in the Town Center. The conceptual renderings and construction cost estimate for the facility were prepared using land owned by the City, located at 11315 Lakefield Drive.

The conceptual rendering, upon which the construction cost was estimated anticipated 57 spaces (54 cars and 3 buses). Within an 8-block radius, 1,700 parking spaces already exist. Of those, the City owns 333 spaces (available at City Hall) and has deeded rights to 200 spaces at the adjacent building. The City has also secured joint use parking agreements with several surrounding buildings. Performance hall studies indicate that at least 400 spots are needed (as event goers usually come with a guest).

The estimated construction cost for the performing arts center is $50 million.

The estimated total cost of the project is $60 million, which includes the estimated construction cost (of $50 million) plus a $5 million construction contingency and $5 million for engineering and construction documents.

Nearly ten years ago, a grassroots community effort began to encourage the City to build a performing arts center, citing the needs of local community groups for indoor performance space. Arts and Culture is a strategic priority of the City Council, and they have decided to let voters decide if a performing arts center is in the best interest of the community.

A general obligation bond is a financing tool used by local governments to pay for capital projects that are above and beyond the scope of the annual operating budget and/or will benefit residents for many years in the future.

General obligation bonds typically offer the lowest interest rate for a local government because this type of long-term borrowing pledges the City’s full faith and credit (taxing power) to repay the debt over a specified term, in this case, 20-years. Like a home mortgage, bond payments are spread out over time. This will allow the community, both current and future members, to benefit from and enjoy the performing arts center and to share the cost.

To maintain the existing level of service, including the leading levels of public safety, quality recreation and park facilities, and continue planned maintenance, repairs, and other projects, the City Council decided to fund the performing arts center with a combination of cash on hand, reserves (savings), and general obligation bonds.

If approved by the voters, the City would be authorized to borrow up to $40 million in general obligation bonds.

General obligation bonds are repaid from property taxes dedicated to the repayment of the debt.

It is expected that an increase in property taxes will be necessary to pay the debt service on the proposed bonds. If all $40 million in bonds are issued, the projected property tax rate increase is approximately XX per $1,000 valuation. The formula to determine the tax increase is add formula. For example, a home with an assessed value of $550,000, the annual property tax would be $83.

A citywide voter referendum is required prior to the issuance of general obligation bonds. On June 16, 2025, the City Council adopted a Resolution calling for a bond referendum to be placed on the November 4, 2025 Municipal Election to empower the voters to decide if the City should issue general obligation bonds for this project.

Interest rates for general obligation bonds fluctuate with the market but typically provide for the lowest overall cost of financing compared to other types of debt obligations. Additionally, thanks to the City of Johns Creek’s triple-A credit rating and strong financial position, the general obligation bonds issued by Johns Creek are anticipated to sell at competitive interest rates below 6%.

If the bond referendum question is not approved by voters in November, the performing arts center project may be modified, delayed, or canceled by the City Council.

No. If approved by the voters, the City can only use the general obligation bonds issued to fund the project specified in the bond referendum question.

No public funds will be expended to advocate for or against a bond referendum. The City will provide information to assist residents in making an informed decision. Additional information will be available on the City’s website at www.johnscreekga.gov and posted on the City’s social media channels.