Johns Creek council coalesces around $40M general-obligation bond for proposed performing arts center

City officials at a Johns Creek work session on June 9 signaled consensus to pursue a single-question general obligation bond of up to $40,000,000 to fund a proposed performing arts center and directed staff to prepare referendum language and voter-education materials.

"The next steps for the potential performing arts center all require direction from the council," City Manager Kimberly said as she summarized staff's memo that outlined financing options and a project budget. Staff presented three financing options validated by an outside financial advisor: general obligation (GO) bonds, public facility authority financing, or the Georgia Municipal Association lease-purchase program. The memo estimated an all-in project cost near $60,000,000 (about $50,000,000 construction; $5,000,000 construction documents and professional services; and a $5,000,000 contingency).

Several council members said the facility should prioritize community, multiuse programming rather than an exclusive fine-arts venue, a choice that informs which financing tool is most appropriate. "I'm leaning towards a general obligation bond on this," Councilmember Larry said during the discussion. Legal staff cautioned that tax-exempt GO bonds limit private-for-profit equity or profit-sharing arrangements but allow structured nonprofit management agreements.

On the mechanics, council discussed term length and maximum issuance. After debate over the trade-offs between shorter terms with lower total interest and longer terms that lower annual debt service, the body signaled a majority preference to draft the referendum using a 20-year term while noting some members favored 30 years for generational equity. "So it's only there's a majority in favor of 20, so I'd write it up that way," the presiding official said when summarizing members' preferences.

Council also directed staff to prepare an education campaign similar to prior bond efforts — staff-prepared materials, open houses and HOA outreach — and to create a clearinghouse page on the Johns Creek website once council formally calls the referendum. Staff said it would bring a draft resolution (including an intent-to-reimburse resolution to preserve pre-issuance flexibility) and sample referendum language back to the council for consideration and that a special-called meeting late June or a July 14 work session could be used to finalize details.

The council did not take a formal vote at the work session; direction to staff was procedural and preparatory. Next steps are a staff-drafted resolution to call the referendum, proposed referendum language for council review, and a public outreach plan to explain the project, cost estimates and the financing mechanics to voters.