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Low-income apartments to make a dent in affordable housing shortage in Macon

fr franklinaptsWhat was once a construction scene characterized by luxury, mountainside housing and second-home developments has a newcomer at the table. The latest construction project in Macon County are not mini-mansions in the highlands but a low-income apartment complex in town.

High-end apartment complex caters to shortage of WCU student housing

Housing developer Scott Austin did a little simple math before deciding to pursue an $8 million dollar project to build two four-story apartment complexes in Cullowhee, right on the front doorstep of Western Carolina University.

He looked at the number of dormitory beds provided by the university for student housing — about 4,000. Then he researched the number of available, quality units in the area around the university and came up with another 1,000.

Forest Hills doesn’t want student housing complex

Village of Forest Hills leaders are saying no thanks to a Charlotte company that wanted to build luxury student apartments on a 19.5-acre tract in the tiny town across the highway from Western Carolina University.

This does not mean that the 200-unit, $25-million development couldn’t be built elsewhere in Jackson County, just not in Forest Hills’ town limits. Planner Gerald Green said the only restrictions on developments of this type are in Cashiers, the county’s four municipalities and the U.S. 441 corridor.

Developer Shannon King told The Smoky Mountain News late last week that if Forest Hills said no, she would look elsewhere in the area for a suitable site. King needed Forest Hills’ to grant an exemption from the community’s zoning laws for the development to move forward there.

Before settling on the Forest Hills site, Monarch Ventures had scouted the vacant hotel — locally dubbed the ‘ghostel’ — on the main commercial drag of N.C. 107 in Sylva. This was intended to be a Clarion Inn, the town’s first name-brand hotel, but the developers ran out of money and abandoned the project, which was foreclosed on by the bank that held the construction loan. Michelle Masta of Skyros Investments is marketing the unfinished hotel shell, and she confirmed Monarch Venture’s prior interest. The hotel is mired in litigation from a contractor who wasn’t paid in full; it can’t be sold until the legal issues are resolved.

Forest Hills council members, meeting Friday in a more than five-hour visioning session, agreed that this type of student development is at odds with their vision of tranquil life in the village.

The community incorporated in 1997 expressly to keep students out. This included zoning out the possibility of large student complexes, and setting restrictions on the number of students living together in a rental house. That stance has clearly softened during the intervening years for this set of council members, at least. They noted that 50 to 75 students currently do live in Forest Hills (many in a motel there) and are part of that community. But a huge development, as proposed by Monarch Ventures, seemed more than Forest Hills leaders were willing to embrace.

“It’s not that we are anti-student because we are against a complex,” Council Member Suzanne Stone said. “Saying ‘no’ to Monarch would not mean saying ‘no’ to WCU.”

A recent survey sent to Forest Hills residents recorded little support for the development. Out of 59 responses, 38 noted they “strongly disagree” with such a development, eight disagreed, six had no opinion, two agreed and five “strongly agree.”

 

Track record

Additionally, Forest Hills council members cited concerns about the background — or lack of background — of the company involved, Monarch Ventures.

North Carolina incorporation records show that Monarch Ventures came into existence just 13 months ago, in September 2010; and that it has no record as a company building these types of student-based developments. This raised questions about how Monarch Ventures had presented itself to Forest Hills leaders — as a veteran student-housing development company.

The company might be new, but King, the woman who owns and launched Monarch Ventures, in fact does have an extensive, national background of building private student housing. King, until less than a year ago, was executive vice president and chief marketing officer of Campus Crest Communities, a company also based in Charlotte. Campus Crest developed and owns 32 student-housing complexes nationwide.

The company is the subject of myriad complaints regarding its housing. Additionally, a federal lawsuit filed in Mecklenburg County by a former employee accused Campus Crest of having a sexually hostile and demeaning work environment.

According to court documents, company officers directed top employees to “hire predominantly young, white women to available positions at the company’s various residential rental properties.”

Council Member Clark Corwin showed fellow board members a copy of a newspaper article that quoted from the lawsuit. King, according to court papers, is alleged to have said: “We have Southern investors; they do not like for us to hire blacks.”

“I can’t imagine that in this day and age,” Mayor Jim Wallace said in response.

“I don’t think they need anymore time at our meetings — we’re done,” Stone said.

After some discussion about how best to pull the plug on King’s development plans for Forest Hills, Council Member Gene Tweedy said: “Just tell her, ‘The community is not interested.’”

Problems with Campus Crest buildings, called “The Grove” at the company’s multitude of student housing complexes across the nation, include reports that students trying to move in were told they couldn’t because the apartments weren’t finished on schedule.

An “anti-Grove” group is active on Facebook, primarily populated by disgruntled student renters.

Asheville has a “The Grove” complex on Bulldog Drive, near UNC-Asheville, owned by Campus Crest.

“Student complaints from these complexes are the same across the country,” wrote Peggy Loonan, who is leading an effort to prevent Campus Crest from building in Fort Collins, Colo., in a Feb. 11 guest article for the Northern Colorado Business Report. “Students, not professional leasing agents, manage onsite leasing offices. Maintenance is slow to respond if at all; appliances don’t work; apartments aren’t cleaned between tenancies and mattresses are soiled. Move-in dates on signed leases are pushed back because construction isn’t complete. Students describe hearing other tenants having sex. Students turn off heat to stay within their allotted utility amount and report being denied copies of utility bills.”

King, contacted late last week, was eager to distance herself from Campus Crest and its work record.

“Quite frankly, that’s why I’m no longer with Campus Crest,” she said.

King said that Monarch Ventures is committed to building near Western Carolina University.

“We absolutely want to be in the Western community,” she said.

Charlotte company seeks approval for $25 million student complex in Forest Hills

A Charlotte company wants to invest $25 million in a 400-person housing development for Western Carolina University students who are looking for the finer things in life.

Monarch Ventures has asked the Village of Forest Hills, a tiny incorporated community next to WCU, to allow it to use what’s known as the 19.5-acre Valhalla tract. Monarch Ventures wants to buy the tract, located on North Country Club Drive, from owner Catamount Hollow LLC.

Town leaders are expected to discuss the request, and residents’ reactions that were gathered via a community survey, on Friday during a board retreat.

Shannon King of Monarch Ventures said this would be a “premier” student housing complex, offering amenities that aren’t currently available, including a clubhouse, pool, tanning beds, exercise programs and more.

“There’s a need for quality housing at Western Carolina University,” King said. “And this could be a recruitment and retention tool for the university.”

WCU has experienced significant growth in the past decade. Spokesman Bill Studenc said as the university continues growing enrollment — a stated goal of new Chancellor David Belcher, who has noted state funding is tied to those numbers — there is a corresponding need to house those students.

“I know that right now we are at capacity,” Studenc said.

King has assured Village leaders that Monarch Ventures is “sensitive to concerns about noise and traffic,” and would provide “on-site, 24-7 management for safety.” The group also offers programs for students living with the complex. King said rental rates would be comparable to residential dorm rates at WCU.

Monarch Ventures has just broken ground on a similar project at Coastal Carolina University in Conway, S.C.

Kolleen Begley, who lives in Forest Hills and serves as the community’s finance officer, welcomes the prospect of upscale housing in the small residential village.

“Not everyone in the Village thinks students are a nuisance,” Begley said. “The Village is a municipality, not a retirement community. I have more faith in our young adults attending college than what has been depicted at monthly meetings from the only people who have time to attend. I support the university we chose to move across from. WCU is vital to our local economy. So are jobs and tax money.”

Forest Hills incorporated in 1997 for one primary purpose: keeping student housing out. The 350 to 400 people living in the Village of Forest Hills were clear at that time on not wanting students taking over their community.

The newly sworn town board’s first act after the referendum to incorporate passed? Adopting a building moratorium on everything but single-family, site-built, residential houses with at least 2,000 feet of heated space. The board was confident there weren’t many students who could afford that kind of housing.

King said ideally construction would start in November, but that she believes Monarch Ventures — if town leaders give the OK — would start phasing-in the project beginning next year.

Mark Teague, zoning administrator for Forest Hills, said that the development group would need a use permit and perhaps a variance from the town.

“They’ve got their ducks in a row,” he said, “and I think this is the No. 1 spot where they want to do it.”

Second-home economy makes its mark on WNC

The second-home economy has fueled far more than construction and real estate jobs over the past decade.

“If it’s someone’s second or third home, they aren’t bringing anything with them,” said Doug Worrell, the president of High Country Furniture in Waynesville. “They aren’t moving their furniture.”

As a new economy emerged to support the second-home movement, furniture stores have proliferated throughout the region.

Worrell saw a customer last week who bought a home at Bear Lake Preserve in Jackson County and wanted it furnished by Friday. On the other end of the spectrum, a couple who hadn’t yet closed on their lot, let alone started building, were already browsing for their dream furniture.

A brand-new house also calls for art and décor. Enter the many galleries and boutiques filling downtown store fronts through the region.

“What impact does the second home market have on Main Street? Major,” said John Keith, owner of Twigs and Leaves gallery in downtown Waynesville.

Many second-home owners make a hobby out of decorating their new mountain abodes, and Twigs and Leaves had the sales to prove it. But as second-home construction slowed over the past three years, so did the purchase of artwork, Keith said.

While Keith has no doubt the second-home market will return — few places can beat WNC as a destination for retiring boomers — some galleries have been unable to wait out the downturn. Just last month, Echo Gallery in the upscale Biltmore Village closed down.

No one knows the importance of the second-home economy more than Danny Wingate, the vice president of Haywood Builders in Waynesville.

Haywood Builders nearly tripled its sales over the first half of the decade, peaking at $30 million in sales in 2006. The robust growth was fueled almost entirely by the second-home market, Wingate said.

“Our business was made up primarily of high-end second homes,” Wingate said.

The large number of gated communities popping up in Jackson County spurred Haywood Builders to open a Design Center in downtown Sylva, where people building homes could pick interior features from kitchen cabinets to bathroom lighting.

“It was a platform for us to access the Jackson County market, particularly for cabinetry,” Wingate said. It was a savvy move: Wingate recalled one homeowner who spent $140,000 on cabinets alone.

But that has all changed now.

“We are off substantially,” Wingate said of sales today compared to that boom period.

Last year, sales had dropped to $12 million, a precipitous decline from the peak of $30 million in 2006.

Wingate has a bird’s eye view of the construction industry, with builders constantly funneling through his store, where both prices and customer service beat out his big-box competitors. Contractors who were once among his top 10 biggest clients are now struggling to find work.

“Even our big boys are out of work,” Wingate said.

 

Time for reflection

The slump in second home growth isn’t all bad, according to Ken Brown, Chairman of the Tuckasegee Community Alliance in Jackson County.

Brown questioned whether the growth rates of the past decade are sustainable. Jackson County saw the largest population growth of any county in WNC among year-round residents, as well the biggest increase in home construction, much of it in the second home market, according to the census.

“It is hard to gauge what kind of an impact that had when you have that many folks building second homes,” Brown said. “It is kind of unprecedented in my time.”

The economic downturn has been like a pressure relief valve on a boiler.

“I think we need to assess just what kind of development we want,” Brown said. “You wonder if that trend could happen again if the economy does pick up. It would put a tremendous amount of pressure on the county.”

Now is not the time for counties to let down their guard on mountainside development or roll back ordinances regulating slope construction, he said. Jackson County passed some of the region’s most progressive and restrictive development regulations four years ago — largely in response to the unparalleled building boom. But that could change given a slate of new commissioners elected last fall.

“We felt like they may try to weaken or water down the ordinances,” Brown said.

So Brown and like-minded citizens in Jackson County have formed a grassroots task force to keep an eye on any moves by the newly elected board of commissioners to undo construction regulations, Brown said.

Brent Martin, who lives in Macon County and works for The Wilderness Society in Sylva, said the face of the mountains could change dramatically if the second-home dynamic continues on its current trajectory.

“It will be very interesting to see what this place turns into in another 30 or 40 years,” Martin said.

“I don’t know how we would handle it. The current downturn is allowing us to catch our breath and step back and figure out how to address the next wave of it — because it is certainly coming.”

Old hospital to be repurposed into senior housing

Haywood County’s seniors are one step closer to having more affordable housing options.

County commissioners last week agreed to sell the old hospital to Fitch Development Company for $1.275 million. They will then undertake the mammoth task of turning the old four-story brick hospital into one-and-two bedroom apartments for senior citizens who need affordable housing.

The number of units isn’t finalized, but County Manager Marty Stamey has said that current plans call for 53 units.

The building currently serves as offices for the Department of Social Services and central offices for Haywood County Schools, which are moving out.

County Attorney Chip Killian said that, after interviews and negotiations with Fitch, he’s confident that they’re the right firm for the complex job, which will require jumps through a number of funding and regulatory hoops. To make the project economically feasible, Fitch needs to land housing tax credits, a small county loan and national historic designation.

“These things are very complicated,” said Killian. “I think everybody feels real good about Fitch Development Company in that they’re very motivated and competent to do this kind of project.”

The hospital is a historic entity that holds a place in state history as North Carolina’s first county hospital.

Killian told commissioners that, with their approval, the purchase price is set but closing won’t take place before March 2012.

The Smoky Mountain Center, which occupies a building at the rear of the site, will remain.

County to sell old hospital for $1.2 million

Haywood County’s old hospital is set to get a new life after commissioners agreed last week to sell the building for use as low-income housing for the county’s senior citizens.

Following discussions in closed session at their Nov. 15 meeting, Commissioner Mark Swanger made a motion to sell the building to Fitch Development company for $1.275 million.

The sale, however, is contingent on the development company reaching several different benchmarks before the deed is handed over.

“There’s a lot of things that have to happen,” explained interim county manager Marty Stamey, one of which is garnering a historic property designation and listing on the National Register of Historic Places.

The company would have to apply for tax credits from the N.C. Housing Finance Agency. If the buyers can jump through those hoops, the county has agreed to front them a 20-year, $159,000 loan at 2 percent interest to get the project off the ground, and increase its competitiveness for the tax credits. Under current plans for the building, that would amount to $3,000 per unit.

Those figures might change, as the final number of units to be housed in the former hospital hasn’t been determined.

This offer is contingent on the fact that all these things come into play,” said Stamey, “but [on the current timescale] the developers would start environmental remediation and construction in April 2012.”

The building is currently home to the county’s Department of Social Services and the Board of Education. While DSS has found a new home in Clyde’s former Wal-Mart building, the Board of Education will now have to find a new space before construction gets under way.

The current plan for the building calls for 53 units. As construction draws closer, an analysis will be done to assess the current needs of the county. The results of that study may change the type and number of units.

The offer from Fitch was one of two bids presented to commissioners and offered the highest purchase price for the property.

Stamey said he sees this as a win-win for the county, who will not only get a good price for the building and pull in more tax revenue, but a valuable piece of Haywood County history will be preserved and maintained. And, elderly residents will find the housing they need.

“There’s a serious lack of elderly housing that’s affordable for seniors in our area,” said Stamey. “A lot of counties and municipalities are doing this across the state, and one of the worst things you’d want to see is for the hospital to sit up there and be a dinosaur and just deteriorate away. It has so much historic value to so many people.”

Built in 1927, the massive brick building was the first county hospital in North Carolina. It was renovated in 1955, but a full-scale renovation would, today, cost about $6 million, more than the county could afford on its own. The sale would not include the site’s excess parking or the building that now houses the Smoky Mountain Center.

WCU braces for housing crunch in face of growth, construction delays

Come the start of fall semester, some Western Carolina University freshmen could find themselves residing in unusual living quarters.

A delay in the construction of a new residence hall is forcing WCU staff to scramble for places to put incoming students — and solutions range from creative to cramped.

Balsam Hall, which will house 426 students, including members of the university’s honors program, was supposed to be completed Aug. 1 after a year-and-a-half construction process. But on Aug. 21 — freshman move-in day — just 236 beds will be ready for students, putting about 200 freshmen in a bit of a bind.

“I haven’t yet given up hope it’s going to make it on time, but we have to look at what’s most likely,” said Keith Corzine, director of residential living for the university.

The construction of Balsam Hall is the first phase of a two-phase $50 million project, which will also include the construction of the similar-sized Blue Ridge Residence Hall. The buildings will be the most state-of-the-art dormitories on campus, featuring bathrooms shared by just two students, study spaces, public kitchens and lobbies.

“From the quality of life perspective, it’s a huge gain,” Corzine said.

But the very likely scenario is that phase one of the project, Balsam Hall, won’t be finished on time. Corzine attributes the hold up to a number of construction factors, including delays at critical times and unforeseen challenges with structural work. May was one of the wettest months on record in recent years, Corzine said, which didn’t help things.

“I think we worked through a variety of issues,” he said.

That means making other arrangements for students, hopefully temporarily.

“We think there’s a really strong possibility that anybody inconvenienced by not being able to get in on time would be able to get in around Labor Day, so any inconvenience would be limited to a matter of a couple of weeks,” Corzine said.

Corzine said the university hasn’t decided just where it will house students. One option is Madison Hall, typically used to house graduate students and conference attendees. Grad students could be relocated within the building, Corzine said, and single rooms normally used for conference-goers could be doubled up to house more than one student. Reconfiguring Madison Hall would gain about 70 extra beds, he said.

To find more space, the university will have to get creative. That could likely mean converting study rooms into bedrooms, which the university has done in the past, or temporarily putting two or even three students in single rooms. Corzine realizes, however, that such cramped conditions can be particularly overwhelming for freshman already trying to adjust to life away from home.

“I prefer not to triple it if I can help it,” he said. “You’re going to be putting people in situations with roommates that they most likely don’t know.”

Corzine says he wants to make clear “that the spaces we would put people in would be adequate and as comfortable as we could make them.”

The university will likely cut a financial break to students housed in temporary locations.

“We’ll certainly be looking at the possibility of crediting those students who have been truly inconvenienced, more than likely a pro-rated amount of their housing costs,” said Corzine.

Finishing Balsam Hall by Labor Day will rely on a smooth flow of construction from here on out.

“If everything in the last month-and-a-half breaks just right, if they make up time, and we don’t have any additional delays, then we’re going to be really close with delivering most all the building,” said Corzine. “If you get a delay here or there on something, it’s going to certainly compromise our ability to finish on time.”

 

Growing pains

The university has confronted a student shuffle before. Just last year, the 400-bed Leatherwood Residence Hall was torn down to make way for Balsam Hall and another residence hall that will be built beside it. Students lived in Leatherwood for half the year, then were relocated to empty rooms for the second semester.

“We were able to absorb them mid-year somewhere else,” said Corzine. “That hit us at a point where on-campus demand wasn’t great enough for us to be in a situation like we are in now.”

Corzine listed several factors that have contributed to the lack of space on WCU’s campus, including an increase in the number of sophomores, juniors and seniors who want to live on campus. The lack of off-campus housing in the Cullowhee area is one factor in the number of students seeking dorm rooms.

More than one-third of the university’s student population lives in on-campus housing — 3,475 out of a projected 9,400 this fall. The demand was so great that the university started a waiting list for on-campus housing at the end of last semester.

“We chose to take a position that we could put them on a wait list, but we couldn’t guarantee them housing after that point,” said Corzine.

Record enrollment numbers at WCU could squeeze space even further, according to information presented at a recent board of trustees meeting. The university anticipates between 9,300 and 9,500 enrolled students in the fall of 2009, compared to 9,050 at the same time last year. Applications to the college have soared from 4,500 two years ago to 12,400 this year.

The freshman class is growing particularly quickly, with 1,550 expected this fall, up from 1,219 just last year. Indeed, the university stopped taking tuition deposits from freshmen and instated a waiting list for incoming students for the first time in its history.

Corzine said he doesn’t necessarily mind the challenges growth has and will likely continue to present to university housing. In fact, it’s important to keep WCU residences close to full so that the housing department can continue to fund projects.

“From our perspective, growth is important because we’re self-supporting. We’re an auxiliary service and generate our own revenue,” explained Corzine. “It’s important that we have occupancy rates that are high, so we generate enough money to pay for our costs but also to pay debt on new projects and plan for new projects.”

Still, a shortage of space isn’t an easy situation to navigate.

“We want to be close to full, but obviously any delay creates an issue we’re going to have to work through,” Corzine said. “There’s been a lot of grey hairs over this one.”

 

Preparations

The university is stepping up to accommodate growth. Two old residence halls were demolished to make way for the Balsam and Blue Ridge residence halls, which are among the first parts of a long-range campus master plan.

“We basically had an opportunity to redesign the heart of campus and truly enhance it for generations to come,” said Corzine. A new campus dining hall near the dorms is also nearing completion.

Next up is a redesign of the high-rise Harrell Residence Hall, built in the early 1970s. Harrell will be taken off-line in the fall of 2011 for a major renovation. Over the next seven or eight years, a total of three high rises will be renovated, or about 1,500 beds. Making sure there’s still enough space for students while the buildings are being redone will be a juggling act.

“We’ll have to do them incrementally, and we’ll have to maintain the same basic capacity that we have right now unless we choose to build another building,” Corzine said.

Adding more space for campus housing isn’t out of the question, especially if WCU continues to break enrollment records.

“If our admissions data were to show that we are going to consistently have huge incoming first-year classes, then I think certainly we would have to look at our options and talk about whether we’d want to expand,” Corzine said.

Slowed housing market poses challenges for Swain property revaluation

The burst of the nation’s housing bubble has caused real estate markets to tank — everywhere, it seems, but in Swain County. Property values there have increased 30 percent over the past four years, according to the county’s latest property tax revaluation. The increase prompted a stir of disbelief among local residents.

“I do not see how the property values for our homes would jump this much in this economy,” said resident Brenda Denargo to Swain County commissioners at a meeting in April where scores of residents turned out to protest the revaluation.

Though most residents saw a moderate increase in value, some, like Carolyn Shook, saw theirs almost double and expressed concern over the potential of higher property taxes as a result. Currently, Swain’s tax rate is at 33 cents per every $100 of property value.

“These tax rates are just too high for someone drawing Social Security,” Shook said.

Swain County residents have protested the property values in mass, submitting more than 3,000 informal appeals out of a total of about 11,000 properties, said county tax assessor Pam Hyde.

“That’s a lot,” Hyde said. “About 10 percent is normal.”

The 30 percent average increase in Swain County property values is much easier to stomach than the new property values handed down during the county’s 2005 revaluation, the first in eight years. Then, values increased more than 140 percent. The sticker shock was so bad that the county switched over to a four-year revaluation cycle. But with the economy much worse this time around, and residents are struggling to understand why their property values don’t reflect that.

“The economy is bad, and a lot of people are tying that to this revaluation, saying it should be bad,” said County Manager Kevin King.

The reason

But despite the economy and a decline in overall real estate sales, Swain County and the rest of Western North Carolina have stayed largely immune to plummeting property values that have hit other regions of the country.

“The sales have slowed down from the appraiser point of view, but the ones that are selling, the sale price is high,” said King.

The number of sales has indeed slowed drastically, said Lynn Shore, and independent appraiser who helped conduct Swain County’s revaluation and former appraiser for Cherokee County.

While sales have decreased significantly, property values simply haven’t, said Tracy Madgeburg, an independent appraiser who works in Haywood and Jackson counties.

“Our market has held stable,” Madgeburg said. “It has not had drastic decreases in prices by any means, though things are staying on the market a lot longer, and in the past six months, there haven’t been many buyers.”

The lack of sales has made it harder, though not impossible, for appraisers to do their jobs. Property values are based primarily on comparable sales: appraisers scout out a similar house in a nearby location that has recently sold and use that to estimate the price of another home.

“Sometimes we need to go search all of the county for comparables,” Madgeburg said. “If you’re working on a sale of a very unique property, especially a high-end property, it’s necessary.”

If the property is in a downtown area, said Shore, and there aren’t any comparable sales, appraisers may even trek to the next town over to find a similar property that’s recently been sold.

Madgeburg said many lenders want appraisers to use comparable sales from the last three months, but that can be impossible in a seasonally driven market like the mountains. If nothing can be found, appraisers will sometimes go back as much as a year to compare sales.

Appraisers use complicated formulas to determine property values, and strict guidelines govern both independent and county appraisals.

“What the public thinks is this is something the county conjures up,” Shore said. “When this is a mathematical, uniform agenda that the state has.”

Hyde has the authority to adjust property values during the appeal process if she thinks the value is in fact too high. But she can only do so much, and many walk away unsatisfied.

“If they feel like theirs is outrageously out of line, I can adjust it up and down, but I can’t go as low as they want,” Hyde says. “That’s what all the appeals say, ‘The economy’s gone busted and we need taxes down,’ which I understand. I don’t have a problem with that, but I also have a guideline.”

Ray of hope

The property revaluation leaves the board of county commissioners in a bit of a sticky situation. Commissioners know that realistically, many residents wouldn’t be able to pay their property taxes if the tax rate stayed the same while values go up.

“In this economy, you can’t go up on people’s taxes,” said King.

In 2005, after the last revaluation, the county dropped its property tax rate from 55 to 33 cents per hundred dollars to offset the increase people would otherwise see on their tax bills. The county generated only a small increase to the county’s budget.

County commissioners don’t yet know how much they will lower the tax rate by. The process will be a challenge. State budget cuts have already affected the county, and with the prospect of additional cuts to come, property taxes can be a valuable tool for making up lost revenue. The county is already looking at a deficit in its fund balance, furloughs and layoffs, said King. The county also won’t want to lower taxes until all pending appeals are resolved.

A solution to the county’s dilemma could lie in the state legislature in House Bill 1530. Four years ago, Swain County switched from an eight-year to a four-year revaluation schedule to avoid the sticker shock that accompanied soaring property values in the mountains over a longer time frame. The House bill would allow counties to scrap the results of their property revaluation and in Swain’s case, conduct another one in four years.

But with Swain’s property tax rate far below the state average of 58.6 cents on the dollar, the county may not garner much pity from state officials, King said.

“In Raleigh if you’re less than the state average, they say don’t come talk to us,” King said. “But if we went to 58.6 cents (on the hundred dollar) I don’t think you’d get another board of commissioners to run for office.”

Swain County may have low property taxes, but it’s also in a unique situation due to the number of second homes inflating the market price for property.

“What (the state) doesn’t realize is that we’re caught in between a rock and a hard place because the local people aren’t the second homeowners that have driven the prices up,” King said. “We’re a county of have and have nots.”

The county has been hard at work lobbying representatives and the bill sponsors for support. The bill must reach the Senate by Thursday of this week, or it won’t pass.

Cherokee tackles long-standing problems of housing and drugs

The Eastern Band of Cherokee Indians has announced plans for an affordable housing development and substance abuse treatment center in Swain County.

The tribe plans to build an affordable multi- and single-family housing development on a 300-acre tract in the Coopers Creek area. The development could have as many as 175 homes on it, according to Chief Michell Hicks.

Though the housing will only be open to enrolled members of the tribe, the housing will help add to the base of affordable housing in the region. The lack of housing in general has been a problem for the Cherokee, who are hemmed in by the borders of the Qualla Boundary.

“We don’t have a whole lot of lower- or mid-income housing here,” said Hicks.

Hicks said of the tribe’s interest in purchasing the Coopers Creek tract, “we’re running out of buildable land, and the goal was to try to find land that had some prospect for multi-use.”

Hicks said the tribe hopes to keep home prices as low as possible.

“(With affordable housing) we do our best to stay under $100,000 for homes. Then again, you have homes that will push the $200,000 mark,” said Hicks.

The tribe hopes to break ground on the project in 2010. There are no estimates of construction costs yet.

The tribe hopes to build a substance abuse center in the Kituwah area, which has special significance to the tribe. Kituwah, referred to as the mother town of the Cherokee, is thought of as the birthplace of the Cherokee people. A council house once rested on an Indian mound that is still visible on the property, and the area is listed as a National Historic Site.

The regional mental health center would be built across the road from the sacred mound site. It would serve not only enrolled members, but the general public. The center would specialize in treating adult and juvenile substance abuse — treatment that is sorely lacking in the region, Hicks said.

“It’s something that has been neglected in North Carolina and in Western North Carolina,” said Hicks.

Drugs are one of the leading crime problems in Cherokee, and by offering treatment for addicts, Cherokee could bring down crime rates. Hicks said the tribe will seek financial assistance at both federal and state levels to fund the project.

To operate the center, the tribe will need to hook it up to Swain County’s water and sewer infrastructure. Currently, the tribe has a 20-year, 50,000-gallon per day agreement to use Swain’s infrastructure. But the mental health center would far exceed that agreement, and would likely prove too much for the current system to handle.

“We can’t put that kind of facility on the system,” Hicks said. “The infrastructure would have to be upgraded.”

Hicks said the tribe would likely propose footing the bill to upgrade the water and sewer infrastructure currently in place in the county and in Bryson City.

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