ALPHARETTA, GA — Alpharetta leaders have unanimously approved the creation of a new tax allocation district (TAD) to help support the long-term redevelopment of North Point Mall and the surrounding area.

The district, set to take effect on New Year’s Eve, is designed to jump-start mixed-use development and potentially even support efforts to bring a professional sports team to the city. Councilman Doug DeRito said the move strengthens Alpharetta’s negotiating power.

“It puts Alpharetta front and center on the ability to negotiate with the NHL and possibly bring an expansion team here or maybe even another sporting team to Alpharetta,” he said.

Gary Mongeon with the KB Advisory Group told city officials the area currently makes up less than 3% of Alpharetta’s tax digest. With redevelopment fueled by the TAD, that number could climb sharply.

“We anticipate that by 2040 the tax digest could go from a little over a quarter of a billion dollars to something closer to $1.4 billion, which is a 400% increase over what’s there today,” he said.

Mongeon emphasized that the TAD is intended to give Alpharetta the financial tools needed to attract the type of development residents have asked for.

“The purpose of this TAD is to give you the tools to generate the type of development in that part of the city that the community is advocating, which is primarily mixed use,” he said.

Councilman Donald Mitchell called the site a prime opportunity for the region. “This is going to be a regionally significant economic development project regardless of what it is; the location is just too good,” he said.

The TAD will remain in place until all future redevelopment is fully paid off. Next, the city will enter negotiations with Fulton County and the Fulton County School District to finalize details surrounding the district.

WSB Radio’s Michelle Wright contributed to this story.