City and county voters may have the final say on the proposed large-scale development in the Hollywood community at the Tom Arrendale interchange at GA 365 and U.S. 441/GA 15. The development is now facing a series of significant legal and procedural challenges that could shape its future over the coming year.
Artisan Land Companies is seeking to develop nearly 180 acres near the Habersham-Stephens County line. The ambitious project would feature a mix of medical facilities, office spaces, retail shops, and residential areas. However, before a single brick can be laid, several critical steps must fall into place.
At the heart of the issue is Demorest’s newly passed Redevelopment Powers Act, which would allow the city to use tax allocation districts (TADs) and issue bonds to fund economic development projects like the one proposed at the Arrendale site. The legislation, passed this session by state lawmakers, gives Demorest a pathway to finance redevelopment — but it is not yet a done deal.
Governor Brian Kemp must still sign off on the bill, and if he does, city voters will have the final say. A referendum would be scheduled for this November, and without voter approval, the city cannot utilize the redevelopment powers authorized in the act.
Annexation complications
Even if the Redevelopment Powers Act clears all hurdles, the development still faces challenges with annexation. The land Artisan hopes to build on is not contiguous to Demorest’s current city limits — a legal requirement for annexation for developers under Georgia law.
To get around this, developers are exploring a “spoke and stem” annexation strategy. This method has precedent: the City of Atlanta used it years ago to annex land in Dawson County for a future airport. Under the current plan, Artisan and the Irvin Family, owners of land adjacent to the development site, would donate a small parcel fronting U.S. 441 to the City of Demorest. This would provide a connection point — or “stem” — making the larger development tract legally annexable.
However, both the city and Habersham County must approve this type of annexation.
Legislative uncertainty looms
Adding further uncertainty is House Bill 155, recently passed by both chambers of the Georgia Legislature. The bill includes several amendments aimed at tightening annexation rules, particularly those like the one being considered for the Arrendale project.
One key amendment requires that if annexed land is only connected to the city through physical separations like roads, rivers, or utility rights of way, and not directly contiguous to the city limits, a countywide referendum must approve the annexation — even if the city owns the land and the county has passed a resolution in support.
This new requirement could present a significant hurdle for Demorest and Artisan Land Companies, potentially delaying or derailing the project altogether if voters in Habersham County don’t support the annexation.
For now, the fate of the proposed development at the Tom Arrendale interchange remains uncertain. As these legal and legislative pieces continue to unfold, developers, city officials, and residents will be watching closely.
House Bill 155 was authored by State Rep. Victor Anderson (R-Cornelia) and 50th District State Senator Bo Hatchett was the Senate sponsor for the bill.
