Performing Arts Center Bond Referendum

The City Council has asked 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.

Nearly ten years ago, a grassroots community effort began that encouraged the City to build a performing arts center, citing the needs of local community groups for indoor performance space. City Council has determined that the voters should decide if a performing arts center is in the best interest of the community.

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.

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 a 60,000 – 65,000 square foot 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 multi-purpose 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.

Yes.  The Performing Arts Center will be made available to community organizations and community members to provide a facility they can rent for use in Johns Creek rather than having to leave the City for performance facilities.

The rental rates for the facility have not yet been finalized. The goal is to set rental rates that are affordable to community organizations and aligned with market rates for comparable facilities.  If the bond referendum is approved by the voters, rental rates for the facility likely will be determined by the City Council before construction is completed on the facility.

The performing arts center will be located in the Town Center. The conceptual renderings and construction cost estimate for the facility were prepared using 5.75 acres of land owned by the City, located at 11315 Lakefield Drive.

As seen in other local performing arts centers, guests likely will make use of a drop-off at the front of the facility, park their vehicle, and walk a short distance into the facility. The conceptual rendering, upon which the construction cost was estimated, anticipates 57 spaces (for 54 cars and 3 buses). Study of performance halls shows that at least 1 parking spot per 2 audience members will be needed (as event goers usually come with a guest) and that parking should be located within a few blocks of the facility. Using this formula, 400 parking spots would be needed for this facility.  Directly across the street at City Hall, 11360 Lakefield Drive, the City has 333 spaces. Adjacent and to the south at 11315 Lakefield Drive, the City has obtained access to 200 spaces. The City has several other signed parking agreements granting access to hundreds more spaces in the immediate vicinity of the facility. Within an 8-block radius of the anticipated construction site, 1,700 parking spaces already exist.

If the bond referendum is approved by the voters, the City will need to complete construction documents before the project can be put out to bid for construction. Because of the complexity of this kind of facility, even working expeditiously, each step of the project will take time. The construction documents are anticipated to take about 12 months to complete, and construction is anticipated to take 24 months.

If the City moves expeditiously to prepare construction documents, puts the project out to bid for construction as soon as possible, and everything goes well with construction, in a best-case scenario, the Performing Arts Center could open in 2029. If there are delays in decision-making, extensions in the procurement process, economic uncertainties, or longer-than-expected lead times for materials, the opening would then be expected in 2030.

The construction of the performance hall and support areas is anticipated to be funded and completed in one phase. However, the construction documents will be prepared so that  certain elements (to be included in the construction plans as add alternates or deductions) could be delayed to a future phase if necessary. Also, there is the possibility of adding complementary uses over time in subsequent phases as suggested in the Town Center Vision and Plan.

The estimated construction cost for the Performing Arts Center is $50 million.

The estimated construction cost, based on a concept-level plan, is expected to be $50 million plus a $5 million contingency. The construction cost estimate will be refined as the construction documents are completed. The maximum construction contract cost would be set by the City Council when they award the construction contract.

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.

In September 2024, the City Council approved  $5.6 million to be used to purchase the 5.75 acres of land located at 11315 Lakefield Drive on which the conceptual renderings and construction cost estimate for the facility have been modeled. The land costs are not included in the estimated total project cost listed above. If the land costs are added, the total project cost would be estimated at $65.6 million.

The construction budget is anticipated to be $50 million plus a $5 million contingency. The first check-and-balance on the construction budget is the 10% ($5 million) contingency outside of the construction budget. The second check is that within the $50 million construction budget, some owner’s allowances could be withheld or completed later. The third check to contain the construction cost is that the construction documents will be completed with add-alternates and deductions, so that if the construction bids come in higher than anticipated, elements can be deducted and added to the facility later.

Yes. Because construction costs seem to be perpetually rising, the construction documents will be prepared with add-alternates and potential deductive options, so if necessary, certain elements could be delayed to a future phase.

The City anticipates using cash on hand to fund a portion of the project, which does not have an impact on the City’s financial reserves.  That is, the use of cash on hand does not have an impact on the funds the City has set aside for vehicle replacement. It does not have an impact on the funds the City has set aside for maintenance of existing assets. It does not have an impact on the funds the City has set aside for an operating reserve. And it does not have an impact on the funds the City has set aside for cash flow purposes.

Roughly one-third of the City of Johns Creek’s annual revenues come from property taxes. As the bond referendum would issue up to $40 million in general obligation bonds, the balance of the project is funded from previously collected revenues, which were in part previously collected property taxes.

In 2024, the City adopted a Capital Improvement Plan (CIP) to consolidate and organize all the potential City investments suggested by various City planning documents (including the Comprehensive Plan, Transportation Plan, the Recreation and Parks Master Plan, the Town Center Vision and Plan). Although the projects in the CIP are listed by year with anticipated costs by project, the CIP is a consolidation of planning documents that were unconstrained by fiscal reality or funding constraints. Each year, projects from the CIP are reviewed and considered for funding by the City Council as part of their adoption of the operating budget for the year. Every forecasted year of the CIP has more projects to consider than funding to allocate. Although plenty of unfunded projects remain in the CIP, if the bond referendum is approved by the voters, no projects that have been previously budgeted would be delayed or not started because of the Performing Arts Center initiative. The City Council will continue to determine, as part of the annual budgeting process, which projects to prioritize, budget funds for, and authorize staff to implement.

No. A city-wide voter referendum is required prior to the issuance of general obligation bonds. On June 26, 2025, the City Council adopted a Resolution calling for a bond referendum to be placed on the November 4, 2025 Municipal Election ballot that asks the voters to decide if the City should issue general obligation bonds for this project.

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, that term would be 20 years. Like a home mortgage, bond payments are spread out over time.

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.

To maintain the existing level of service, including public safety, quality recreation and park facilities, and continue planned maintenance, repairs, and other projects, the City Council decided that a combination of cash on hand and general obligation bonds, if approved by the voters, would be the best method to fund the performing arts center.

The proposed referendum would authorize the City to issue up to $40 million in general obligation bonds.

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%.

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

Approval of the bond referendum would result in a property tax increase to pay the debt service on the bonds.  If all $40 million in bonds are issued, an average Johns Creek home with a fair market value of $525,000 can expect $80 per year (or $6.67 per month) in additional property taxes to construct the Performing Arts Center.

You can calculate an expected property tax impact on your home if you know (1) the appraised value of your home and (2) the millage rate. If Fulton County has appraised your home for $550,000, then the assessed value is 40% of the appraised value. For a $550,000 home, that would be $220,000 (or $550,000 x 40% = $220,000). Using an anticipated millage rate of 0.38 mills per $1,000 (or 0.00038), the anticipated property tax impact would be $84 (or $220,000 x 0.00038 mills = $84 in property taxes).

By way of explanation, each year, Fulton County sends an annual notice of assessment to property owners. The property taxes on the assessment are levied in millage rates which are set by each taxing jurisdiction (including Fulton County, Fulton County Schools, and the City of Johns Creek). The taxes are applied to the assessed value of a property. To get to an assessed value, you take the stated fair market value (100% value) and multiply by 40% (assessed value = fair market value x 40%). Fulton County has stated the 2025 average fair market (100%) value for a home in Johns Creek is $525,000. Therefore, the average assessed value of a home in Johns Creek is $210,000. Your home’s fair market and assessed value are both listed on your property tax bill.

It is anticipated that to cover the debt service for general obligation bonds issued for the Performing Arts Center, the City will need to levy a millage rate of 0.38 mills per $1,000 of assessed value or 0.00038. If a levy of 0.00038 is levied for the Performing Arts Center, then the property taxes on the average home (appraised at $525,000 and assessed at $210,000) would be $80 (or $210,000 x 0.00038). If your home is assessed at a higher value, the impact will be higher. If your home is assessed at a lower value, the impact will be lower. Any exemptions, such as the homestead exemption, would further reduce the assessed value of your property.

On your property tax bill, the Performing Arts Center bond millage will be added to the existing line for “Johns Creek Bonds” which currently includes a 0.00025 mill levy for the 2016 Parks Bond. Adding the anticipated 0.00038 would result in a Johns Creek Bonds levy of 0.00063 total assessment for general obligation bond debt service.

The method to run and manage the Performing Arts Center has not yet been finalized. City Council has reviewed options including a public-private partnership, operation by a not-for-profit organization, and direct operation (with full- and part-time City employees). The City Council has expressed a desire to make the facility affordable for rent by community organizations, which may impact future decisions as to how the facility is managed. If the bond referendum is approved by the voters, management of the facility is one of several issues that will be determined by the City Council before construction is completed on the facility.

The anticipated costs of operation have been modeled based on the conceptual plans for the facility and the actual costs for operation of similarly sized performing arts facilities, as well as regional and local performing arts centers. The preliminary pro forma anticipates the first year of expenditures at $1.64 million. For modeling purposes, the anticipated operations costs were grouped into nine categories: (1) salaries and benefits; (2) wages; (3) professional, technical, and contractual services; (4) custodial / cleaning services; (5) equipment, materials, and supplies; (6) service contracts; (7) contractor services; (8) utilities; and (9) marketing and promotions. Expenditures are anticipated to be mostly offset by revenues generated, but would require some funding through an operating endowment, naming rights/sponsorship revenue, and/or grant funds to fully fund the operation of the facility.

The funding for ongoing operations are anticipated to mostly come from the revenues of the Performing Arts Facility. The anticipated revenues have been modeled based on the conceptual plans for the facility and the actual revenues from the operation of similarly sized performing arts facilities, as well as regional and local performing arts centers. The preliminary pro forma anticipates the first year of revenues of $1.33 million. For modeling purposes, the anticipated revenues were grouped into nine categories: (1) rent; (2) other rental fees; (3) ticket fees; (4) box office fees; (5) net food and beverage; (6) reimbursed event labor; (7) donations/memberships; (8) sponsorships/advertisements; and (9) Tourism Product Development funds.

If approved by the voters, successful examples from regional and national performing arts facilities have shown that opportunities like naming rights, sponsorships, endowments, and private donations are all possible means to offset the costs of operations and further involve the community in having a direct role in supporting the facility.

In addition to the revenues anticipated to cover most of the operating expenditures for the Performing Arts Center, the City also expects to pursue funding through an operating endowment, naming rights, and/or grant funds.  If the funding from anticipated and possible revenue streams does not materialize, it is possible that money from the City’s General Fund would be invested in the facility to cover expenses in the same way that the City makes annual investments in other recreation and park amenities. Typically, a performing arts center is either operated as part of the Recreation and Parks Department or as an autonomous enterprise fund.

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. Established state and federal regulations prohibit the City from using general obligation bonds for anything other than the stated purpose in the referendum. In this case, if the referendum is approved by the voters, the funding can only be used for the Performing Arts Center.