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Riverside development proposed in Cullowhee

A large residential development proposed near Western Carolina University could boost Cullowhee’s revitalization movement and cater to the region’s professional crowd seeking an outdoor lifestyle, but its proximity to the Tuckasegee River has also attracted criticism from area environmentalists.

Steep slope rules on the rocks? Jackson planning board seeks middle ground in ordinance rewrite

fr jacksonregsJackson County’s planning board is knee-deep in a page-by-page rewrite of the county’s steep slope rules — a controversial process that seems destined to rekindle past disputes over protecting the mountainsides versus stymieing development.

A sweeping slate of mountain building regulations passed by Jackson County commissioners nearly six years ago were both commended and condemned as some of the most restrictive in the state. They took aim at unsafe building practices on steep slopes, but also reined in over-zealous development some feared would mar the mountainsides.

SEE ALSO: Changing the rules: Jackson re-writing development standards amid new economic realities

Changing the rules: Jackson re-writing development standards amid new economic realities

coverBy Becky Johnson & Andrew Kasper • Staff Writers

For two years now, Jackson County’s planning board has systematically combed over and rewritten some of its development rules once hailed as the most protective — yet restrictive — in the state.

Aimed at reining in the previously unbridled and laissez-fare construction industry, the regulations put on the books six years ago ushered in a new era of oversight and standards.

From bars to research, Cullowhee poised for growth on all fronts

A grand and engaging vision for Western Carolina University’s Millennial campus as a place where academics, research, private industry and college life intersect has stalled almost since its inception seven years ago, but there might finally be signs of movement.

The $46 million Health and Human Sciences building slated to open in the fall has sparked interest from private developers who are exploring the idea of building a medical complex that would house doctor’s offices or health clinics. Indeed, that was the hoped-for affect of new health care teaching facility — to become the epicenter of a health care consortium where students and professors study and teach alongside private health care providers, medical device companies and specialized clinics.

WCU Chancellor David Belcher said that as the economy improves he believes development plans for the campus will move forward.

“By virtue of this facility I think that we are setting ourselves up as a hub for rural public health,” the chancellor said. “And what I want is medical services for our region.”

However, the economic climate to date has suppressed such growth, he said, because in turn “it’s a matter of them being able to court people willing to lease the space.”

Seven years ago, using $2.87 million in state bond money, WCU bought 344 acres of land across N.C. 107 from the main campus. The idea was to build the Millennial Campus, a showcase of how academics, research, private business and housing could be combined to enhance education. But so far, the campus is home to just the $46 million, 160,000-square-foot Health and Human Sciences building, set to open for classes this fall.

It will bring under one roof 11 programs from the College of Health and Human Sciences ranging from physical therapy to nursing, serving about 1,200 students, including 300 graduate students.

A new College of Education and Allied Professions building was next on the list but has been sidelined because of funding shortfalls in the state budget.

“We’ll need to re-examine and affirm that building or not — it has been four or five years since the decision was made,” Belcher said.

The chancellor said that he is certain that as the economy rebounds there inevitably will be growth taking place in the Cullowhee area. He said the university, for its part, would be forced to deal internally with such planning issues as transportation, sidewalks and the development of infrastructure that includes water, sewer and roads.

“And will there be residential halls there? Dining halls? It takes a lot of advance planning,” Belcher said of the future Millennial Campus.

Cullowhee poised for growth

Millennial Campus isn’t the only area likely to see growth in Cullowhee. The commercial districts around campus could attract new businesses to located following the recent passage of countywide alcohol sales.

Even without those two elements Cullowhee is already the fastest-growing township in Jackson County. The community grew 47 percent between 2000 and 2010, according to the latest U.S. Census.

The prospect of unbridled growth has some in the Cullowhee community calling for the county to start some sort of land-use planning process. Meetings are being held in Cullowhee under the auspices of the Cullowhee Revitalization Endeavor (CuRvE), a community group dedicated to revitalizing and beautifying Cullowhee.

“My hope is that the people of the Cullowhee community will come together and develop a plan for the future of Cullowhee that takes advantage of the natural resources and attributes of the area,” said Mary Jean Herzog, the chair of CuRvE.

Herzog sent a letter to county commissioners asking they consider instituting planning efforts and that they make the revitalization of old Cullowhee a priority.

“As Cullowhee continues to grow, CuRvE is concerned about the lack of planning that has a negative impact on ‘Old Cullowhee,’” Herzog wrote in the letter. “If you walk along Old Cullowhee Road, you can see how this uncontrolled development looks. There are attractive, new houses on the river and on the opposite side of Old Cullowhee Road that add to the beauty of the area … But there are significant sections of disrepair and deterioration that drag down these efforts to beautify and revitalize.”

CuRvE has not heard back from county leaders, but Jackson County Planner Gerald Green is now working with members of that group and other Cullowhee residents at commissioners’ request. The group’s members are studying community-based zoning as a possibility for the area, though it would require gathering the signatures of one-third of the property owners who would be in the planning district. The signatures are a county requirement before commissioners will consider instituting community-based zoning.

Per state law, the designated zoning area would have to be at least 640 acres and be made up of at least 10 separate tracts of land.

Robin Lang, a business owner in Cullowhee and member of CuRvE, said she believes “now is the time to act” when it comes to planning Cullowhee’s future..

“I think the alcohol referendum is waking a lot of people up,” Lang said. “You have to manage growth or it’s going to be a mess. We’ve got to be smart and savvy about it.”

Lang is an advocate for a planning board or council, similar in scope to one now operating in Cashiers, to oversee Cullowhee.

Cashiers in 2003 was divided into two districts, a “village central” and a general commercial zone. In addition, Jackson County commissioners created a five-member Cashiers Area Community Planning Council to review amendments to the zoning plan and to make recommendations to the county planning board. The council also votes on requests for conditional uses and variances in Cashiers.

Like the CuRvE members, Belcher, too, believes growth in the Cullowhee community will present challenges in coming days.

“I don’t want to see it destroyed,” he said. “Our collective challenge is how we as a region and as a community deal with economic development.”

Emergency workers learn to jump hurdles to gain entrance to gated communities

As an aggressive spring thunderstorm brewed over Waynesville this March, causing power outages around town, Erika Stansbury received a frantic call from her elderly in-laws who had lost power at their gated apartment complex.

“Grandma’s on oxygen, and she gets very anxious,” Stansbury said. Her mother-in-law gets nervous her oxygen supply will run out if the power stays off too long.

Stansbury and her husband drove across town to pick up the grandparents and let them stay at their home, which still had power. But, when they reached the gated apartment complex on South Main Street, the gate wouldn’t open. No code, no amount of force or no magic words would pry the electric-powered hinges from their closed position.

The problem is not just this single gated community.

Dozens of gated communities pepper the mountainsides of Western North Carolina. Getting through those gates in an emergency has presented a host of problems for the medics, volunteer firemen and law enforcement officers charged with protecting public safety in Haywood, Jackson, Macon and Swain counties.

“It’s a problem. There is no doubt about it,” said Randy Dillard, chief of the Cashiers-Glenville Volunteer Fire Department. “About everywhere we go, we have to deal with one.”

To help mitigate the problem, Haywood and Macon counties have passed standards within the past two years requiring new developments to install gates with fail-safes that allow emergency service officials to gain entry without an access code.

“It’s a life-safety issue,” said Haywood County Manager Marty Stamey, who formerly served as the county’s emergency service director.

However, older communities, like the one Stansbury’s in-laws live in, were built prior to the rule. As with most gated communities, the Stansburys could go around the gate and get inside on foot, but that would mean walking the elderly couple back out through the storm to the van, which they ruled  out.

“We could get to grandma, but we had no way to get her to us,” Stansbury said.

So, Stansbury called the emergency maintenance number for the apartments. The man who answered was more than an hour away and did not seem too excited to help, she said. The other maintenance employee was on vacation.

“There wasn’t anyone on-site,” she said.

When her first option failed, Stansbury called the Haywood County Sheriff’s non-emergency number.

A sheriff’s deputy drove to the scene but admitted that he did not know how to open the gate without going to extreme measures such as taking the gate off its hinges or ripping it open — something that emergency services would consider if the blocked path meant the difference between life and death.

Luckily, power was restored as the Stansbury’s discussed the problem with the deputy.

“The power came on. But, we had no way of knowing (that it would),” Stansbury said.

The following day, Stansbury took her concerns to the county fire marshal who said he would call and strongly suggest that the owner of the apartment complex exchange the current gate for a newer model, which includes several fail-safes. But, the fire marshal cannot force the owner to replace it, and to the best of her knowledge, Stansbury said the gate has yet to be changed.

“It upset me. That’s for sure,” Stansbury said.

 

Bust ‘em down

Ideally, the county’s dispatch office maintains a list of gate codes and can give fire, police or emergency medical services officials the accurate code.

“Dispatch, 99 percent of the time, has the gate code,” said Jimmy Teem, the Macon County Fire Marshal. “We have not had any really big issues with that yet.”

Haywood County’s 911 center likewise keeps a record of all the gate codes in the county. Most communities periodically change their gate codes for security reasons, so county dispatch has the hassle of constantly updating its system with the latest codes for dozens of gated subdivisions. But it seems to work.

“Most are good about calling and letting us know (about code changes),” said Chanda Morgan, 911 supervisor for Haywood County. “We’ve not had any problems getting in.”

Indeed, many communities — if they are diligent about reporting gate code changes to dispatch — never see a hitch.

“To my knowledge, they never had a problem getting in,” said George Escaravage, a resident of The Sanctuary in Waynesville.

Their gates are also equipped with modern fail-safes: they open automatically in a power outage and have a special audio-trigger mechanism that recognizes the sirens of emergency service vehicles.

Other places aren’t so lucky. Cashiers has one of the highest concentrations of gated communities in the area, and emergency services rarely goes a day without getting a call from within a gated community.

“We probably have more gated communities than anywhere in Western North Carolina,” said Cashiers Fire Chief Randy Dillard. “There is no telling how many gates we have.”

Like other counties, Jackson County tries to keep an accurate list of gate codes but relies on homeowners’ associations to provide them.

“Most people are very, very willing to work with us,” Dillard said.

The Cashiers-Glenville volunteer firefighters usually keep a list of codes stored in their personal phones as well. They are sometimes driving to a fire in their own vehicles rather than first going to the fire station and riding in the fire truck.

Many of the volunteers also work in the construction industry, and luckily already know the codes because they are building a house in a particular gated community.

Still, they occasionally encounter a gate they don’t have the code for, and dispatchers have to track down a resident of the community to get a code.

“They change the code, and we don’t know the code,” said Todd Dillard, director of Jackson County’s Emergency Management Office.

In rare cases, the emergency service officers must take the gate off its hinges.

“Usually, we can pull the pins on them,” Randy Dillard said.

Randy Dillard said he did not remember a time when the fire department has to destroy a gate to gain access — such as busting through it with a truck. And, usually, there is time to find out the correct code.

“It’s hard to justify tearing down a $10,000 gate if its not life threatening,” Randy Dillard said.

Unlike Haywood and Macon, Jackson County does not have any standards on its books requiring gates to be equipped with fail-safes, to the chagrin of some.

“Unfortunately, we do not have an ordinance,” said Todd Dillard.

Todd Dillard said that Cashiers is “where we have most of our problems.”

“There have been some delays. Luckily, there has been no loss of life,” Todd Dillard said.

 

Bold that message

Neighboring Highlands — which also has a high concentration of gated communities and lies across the county line in Macon — has not had as many problems. Highlands is an actual town, with a paid police department, and officers keep an updated list of codes provided by homeowner’s associations.

“All of our gated communities, we have gone and talked to the people in charge of those gates,” said Capt. R.L. Forester of Highlands Police. “So far, we have not had an issues where we could not get into any gated community.”

The police also patrol many of Highlands’ gated communities on a regular basis so they already know the codes. However, if there were a major gate malfunction during a crisis, the police would waste little time.

“We would crash the gate and go in,” Forester said.

Swain County does not have any sort of ordinance or standards either that require gated communities to install fail-safes, but it rarely has troubles.

“When we know there is gates, we ask the homeowners’ association to give us an updated gate code,” said David Breedlove, director of Swain County’s Emergency Services.

The codes are linked in the emergency service’s database of addresses and phone numbers so that it pops up when a resident in a gated community calls. Dispatch then relays the gate code to the right emergency officials as they are en route. Homeowners’ associations are good about keeping dispatch abreast of any changes to their access codes, Breedlove said.

Indeed, that’s the best way to avoid problems: informing their county dispatch of any changes to the code to ensure that when a fire truck or ambulance rolls up to the gate, there won’t be any obstacles standing between them and those who need help.

“If they would keep the 911 center updated … that would be the biggest thing. That would be the words that I would say put in bold,” said Todd Dillard.

 

Back-up plan

A back-up fail-safe many gates now have is an audio activation that recognizes a specific siren call of ambulances and fire trucks to prompt some gates to open. Some of the newer models even allow emergency vehicles without sirens to use their dispatch radios to unlock a gate.

“The radio-controlled are the best way to go because they get all the first responders,” said Randy Dillard, whose fellow volunteer firefighters will arrive on a scene in their personal vehicle.

Other gates have a Knox-Box that sits near the entry. Emergency officials have a key to the box, which holds a master key to the community.

But, if these measures fail or a gate doesn’t have them, emergency management employees assured people that they won’t let a little thing like a gate stand in their way during an urgent situation.

“If they can’t get in the gate and they’ve got a call, they are bound to get in there,” said Teem, the Macon County Fire Marshal. “They will assess the situation (and) they would take the appropriate action — cut a lock, pull it down or whatever.”

Mike Forbis worked for the state fire department for 10 years before recently becoming the fire marshal in Jackson County but would respond to fire alarms in the county during that time. He would sometimes ran into locked gates.

“That is just par for the course for emergency services,” Forbis said.

Several years ago, firefighters had to sit outside the gate of a community where a brushfire was burning until dispatch could find a resident to let them in.

“We had been called to a fire, and when we got there, the front gate was locked,” Forbis said. “And, none of the codes worked.”

It was late fall or wintertime, Forbis recalled, and many of the second-home owners who lived in the subdivision had already left for the season. The dispatcher had to call half a dozen houses before someone answered and opened the gate.

“You had to keep dialing numbers to get somebody to answer,” Forbis said.

Property owners push back against U.S. 441 development regs in Jackson County

A review of rules in Jackson County that guide development along the roughly five-mile stretch of U.S. 441 leading into the Cherokee Indian Reservation is steaming along but possible changes can’t come fast enough for some business owners and residents.

A petition with just fewer than 200 names protesting the current land-use ordinance landed in county commissioners’ laps this month.

David Brooks, a general contractor in the area and one of those who believes the regulations are stifling potential work opportunities, gathered the names contained in the petition. Brooks said this week that doing so was easy — he just drove along the corridor, told people what he was doing and had just one individual opt not to sign her name.

“I started at one end and came to the other,” Brooks said. “The people want it lifted.”

The petition calls on the Jackson County Board of Commissioners “to immediately repeal” the U.S. 441 corridor ordinance adopted in August 2009.

That’s unlikely to happen, however, County Manager Chuck Wooten said.

A task force was appointed last fall to review the development guidelines. It will recommend any changes to planning board, which in turn will recommend changes to county commissioners. The task force has not finished with its review, let alone kicked suggestions up to the planning board yet.

“We are at the very beginning of the review process,” Wooten said.

The development regulations were intended to prevent unsightly or out-of-character sprawl. The current regulations don’t particularly limit where development can occur along the strip of highway leading to Cherokee. It instead lays out aesthetic standards, such as architecture and landscaping, to ensure any development that does occur will be attractive. It also limits billboards and overly large signs, which was a source of contention when it passed.

But property owners believe their options are being limited.

“We believe that the ordinance was adopted with little input from the affected property owners, and that the ordinance causes undue hardship on property owners with the district,” the petition states. “The appearance standards, landscaping rules, and five-acre minimum lot sizes place a burden on property owners and serves to reduce property values for the citizens in this part of Jackson County.”

 

Pre-made decision?

The Gateway land-use plan was a landmark event when passed five years ago. It marked one of the first attempts by a county west of Buncombe to undertake what is essentially spot zoning.

Commissioner Joe Cowan, who served on the board when the ordinance passed, defended the rules recently as having been developed by people who lived in that community. The Whittier/Gateway community in a series of hearings developed a long-range vision and plan for this critical stretch of four-lane highway.

But, Brooks said in response, “a lot of people think the decision was made before they ever had those public meetings.”

County Planner Gerald Green last fall initiated a planning board based review of the rules. A task force of people who live and work in the corridor are involved in the examination. Green said he believes the group will have recommendations ready for the planning board this spring. Revised regulations likely will make their way for commissioner consideration in the summer.

“We’re moving forward,” Green said, adding that he does not believe goals of protecting the corridor’s character and allowing development are exclusive ones.

Currently, some older motels, a consignment shop, service stations and a few businesses dot the corridor. A couple of art galleries and craft shops are at the nicer end of the spectrum. Businesses catering to tourists are few and far between, but many see the corridor, which has water and sewer, as primed for growth.

Green explained in a previous interview that he believes stipulating “nodes” of concentrated development might actually work better instead of allowing growth to sprawl along the entire strip. Sprawl actually could under-gird, not weaken, another goal of the original plan — traffic management.

Monday, Green said the U.S. 441 subcommittee has indeed identified some potential “nodes.”

Also being reviewed were:

• The section of the rules now in place that dictate any new parking lots go behind buildings, not in front. Green also was concerned that the ordinance failed to stipulate that developers couldn’t just “flip” their new businesses around, with the parking lot facing the highway anyway.

• The possibility of being able to get to several shops from a single access road instead of having a long smear of strip development along the entire corridor. Green has said that discourages pedestrian movement between shops, he added.

“It was designed for flat lands, not the mountains,” Brooks said of the ordinance.

In May, Jackson County residents will vote on whether to allow the sale of alcoholic beverages countywide. In April, Cherokee residents will vote on whether to allow the sale of alcoholic beverages reservation-wide. A “yes” by both or either of those communities is likely to trigger some development along U.S. 441.

“Growth will come, sooner or later, and I do think we need some regulations,” Brooks said, adding that he believes the ones now in place, however, are too restrictive.

Another Macon subdivision, more unhappy lot owners

Not long ago Kristina and Bruce Oliver invited a local couple they’d met in nearby Franklin to come play cards with them at their newly constructed house in Diamond Falls Estates.

The phone rang about the time the visitors were expected to arrive at the subdivision, a 285-acre development in the Cartoogechaye area of Macon County bordered on three sides by the Nantahala National Forest.

The local couple apologized and said they’d misunderstood the Olivers’ directions. They had driven somewhere else by mistake. They were lost in a construction zone and weren’t sure where they were or which way to go next. Not to worry, Kristina assured them after getting a description of what the couple saw from their vehicle’s windows. Just keep going, Kristina said, that house on the hill a short distance ahead was indeed the Olivers’ new home.

Drive into Diamond Falls Estate, just out of sight of the entrance gate and the ubiquitous-to-every-mountain-development clubhouse, past the perfectly manicured expanse of lawns, and you might understand why that visiting couple was confused. The subdivision does indeed in places resemble a construction zone, even now some two years after buyers started handing over dollars for lots in what the developer touted as “North Carolina’s latest green community.”

“The primary issue is the roads. We were all told that they would be paved,” Oliver said. She and her husband paid $61,000 for their lot and built a two-story house that was completed last fall.

“We’ve put a good chunk of our retirement savings into this,” said Oliver, a former financial controller and vice president of finances for a specialty store chain.

On this rainy day the roads in Diamond Falls Estates were rough quagmires of gravel, red subsoil mud and pools of water. Without four-wheel drive, they would be impassible. The Olivers, who live fulltime in Birmingham, Ala., purchased a full-sized Nissan four-wheel drive pickup truck because, they said, of the poor condition of the subdivision’s roads.

 

‘A bill of goods?’

Michelle Masta and L.C. Jones of Franklin represent Diamond Falls Estates’ developer, Shirley Buafo. A message left with Buofo’s secretary at her workplace Monday in Macon, Ga., went unreturned as of press time.

To hear Masta tell it, Oliver is a bad apple spoiling an entire barrel of subdivision fun. Masta flat out accused Oliver of “telling lies” about the true situation in the subdivision. Masta said that there aren’t any issues with the roads in Diamond Falls Estates. At least, she said, on the part of the developer of Diamond Falls Estates. The real estate company that might have made promises buyers relied on? Well, that’s a different matter.

“I don’t appreciate Kristina Oliver making accusations that aren’t true,” Masta said. “We are doing everything we can out there. If a real estate agent told them something that was not true, we have no control over that – they need to go after the real estate company or report it to the N.C. Real Estate Commission.”

Masta said, not entirely accurately, that Oliver is the only one of 65 lot owners in Diamond Falls who “has a problem.” In fact, other homeowners besides Oliver are also concerned about the roads.

“We were sold a bill of goods,” lot owner Mark Moore of Atlanta said bluntly in a telephone interview.

But, Masta is correct in noting that not every lot owner is unhappy about the subdivision’s progress. Catherine Shea of Florida, who with her husband owns two lots in Diamond Falls Estates and is building on one of them next to Oliver, said she has found Masta and Jones responsive to issues and complaints.

“I’m not concerned yet; I’m really not,” Shea said.

Not that she’s A-OK with the condition of roads in the subdivision, either, however.

“The real culprit in planting a seed of negativity in Diamond Falls was the real estate company,” Shea said. “They out and out lied.”

That would be the group that marketed Diamond Falls on Oct. 4, 2010, when many of the lot owners first saw the Macon County subdivision.

“We’re not the bad guys,” Masta said of the development side of Diamond Falls Estates.

 

Expect tenacity

The chirpy advertising slogans that worked to attract buyers in 2010 sound so inviting: “indulge in an oasis away from the everyday;” “pure natural beauty preserved for the fortunate few.”

And there’s this paragraph in the online sales literature: “Have peace of mind knowing that protective, yet simple, building covenants will help maintain the overall beauty, theme and value at Diamond Falls Estates.”

Oliver finds it difficult to overlook the audacity of that sort of sales pitch. But, you are mistaken if you believe she’s angry. Oliver isn’t a woman who wastes much time on anger: a member of Mensa International, the high IQ society, she’s marshalling her facts and figures and laying out a strategy for moving forward. She and husband Bruce are members together in the society, a fact that was mentioned incidentally when the discussion turned to Western North Carolina’s own serial bomber, Eric Robert Rudolph, who blew up an abortion clinic in Birmingham. The Olivers, it turned out, were in Mensa with nurse Emily Lyons, who was disfigured in the explosion.

Moore said those involved have likely just crossed paths with one very intelligent woman who will work without respite to hold them accountable. Moore said he and some others in the development rely on Oliver to keep them abreast on what, for now, they claim is a lack of development in the development.

 

Few regs, big loopholes?

Some of the roads in the subdivision are an undeniable mess. But it could have been worse, Oliver told commissioners during a public hearing last week on planning issues (see accompanying article). That’s because the county’s subdivision ordinance will require the development company to pave the roads in at least a portion of Diamond Falls Estates, she said.

Development in Diamond Falls Estates was divided into two phases. The second phase, which included Oliver’s lot and house, was bonded, ensuring that the road will eventually be paved. This thanks to the subdivision ordinance, which was passed, enacted and amended by the time she and her husband bought a lot there last year.

A void in planning regulations is hampering development in Macon County, Oliver said. Not, as developers and anti-planning forces claim, the other way around.

“And there are a million regulations that are imposed by the developer on home owners,” Oliver said. “They just don’t want any imposed on them.”

Dan Kelley, another lot owner in Diamond Falls Estates, made a similar argument in an email sent to planning board member Al Slagle that was provided to Macon County commissioners.  

“I know of four other houses (in addition to his) that would currently be under construction if not for the lack of development in Diamond Falls,” Kelley wrote. “My position on this and others within Diamond Falls is the quickest way to stifle business is for the word to get out that promises are not being honored.”

That said, Kelley wrote a follow up the next day via an email. Masta provided Kelley’s follow up to The Smoky Mountain News. That second email noted: “I do expect promises to be kept but at the same time I believe that L.C. (Jones) has acted in good faith to comply with owners’ needs.”

Kelley noted that he believes “the main issue” involves the original real estate company “promising roads completion and then when people go to Diamond Falls and see that no roads have been asphalted that leads to suspicion and people drawing conclusions.”

For his part, however, Moore is refusing to build until there is clarity about whether the roads will or will not be paved in Diamond Falls Estates.

“I’ve always wanted to have a house back up in the mountains,” the Atlanta resident said by phone late last week. “This looked perfect, and I loved the lot.”

Moore planned on building a 2,700-square-foot house, initially to serve as a second home and ultimately to become a retirement destination. Moore has the architect’s design already in hand. He estimated that it would probably cost him a total of $700,000 to build, which isn’t chump change to local builders and contractors struggling to survive in a dour economy.

“But I’m just not going to spend that kind of money until the roads are done,” Moore said. “It’s crazy — those are four-wheel dirt tracks.”

Resurrecting Balsam Mountain Preserve is one part business, two parts passion

New owners of the high-end Balsam Mountain Preserve development aren’t daunted by the choppy waters of Western North Carolina’s real estate landscape.

Despite the still tepid demand for pricey second homes in the mountains, they say they have charted a course that will bring the beleaguered development out on the other side of the storm still raging across the rest of the region.

The 4,400-acre mega-development — one of the region’s few mountainside golf developments that can rightfully carry that tag line — has its share of battle scars. It’s been through foreclosure, repossessed by investors, hawked to the lowest bidder, babysat by an out-of-state caretaker, then put up for sale.

Now, a rescue of Balsam Mountain Preserve has come full circle. Two wealthy homeowners in the development teamed up to buy the development for $6 million — a fraction of what it was once worth.

If there’s ever a development where millionaire homeowners could emerge from the ranks to become the owners, it’s Balsam Mountain Preserve. Harry Avant of Louisiana and David Carlile of Texas knew each other previously from the oil and gas industry, even before buying their respective property in Balsam Mountain Preserve several years ago.

They have hired two former members of the Balsam sales team to come back and run the place. Jimmy McDonnell and Bruce Fine both worked together at Balsam Mountain Preserve under the original owners and developers.

“We know the owners, we know the property, we know the employees, we know the project, we know the market,” Fine said of their return, this time as president and vice president.

The hunt for solid ground in today’s new real estate landscape is more than just a financial deal for the new team.

“If there wasn’t a significant upside from a financial and business perspective we probably wouldn’t have done it. These guys are not a nonprofit entity,” Fine said. “But to save a place that you really have an emotional connection to, and it could be a good business decision at the same time, is a win-win overall.”

For the past 18 months, Balsam Mountain Preserve has been in limbo. The former owners defaulted on $19 million in debt and went into in foreclosure. The development landed in the hands of a private equity firm that immediately began looking to unload it.

So what, exactly, did Avant and Carlile get for their $6 million purchase of Balsam Mountain Preserve?

For starters, they own a really, really nice Arnold Palmer golf course. All the amenities, from the swimming pool to tennis courts to clubhouse to riding stables, are also included.

But as for what’s marketable — the pieces of the development that are worth something — there are about 130 to 150 home sites left to sell off.

Only one lot has sold in Balsam Mountain Preserve this year, however.

“2011 was kind of a lost year for Balsam. It was for sale and people knew it was for sale,” Fine said.

Despite the unimpressive showing, the new team isn’t fretting over whether Balsam Mountain Preserve will make it. Optimism over the new owners is already fueling sales, Fine said. There are two contracts pending — one on a new lot and one on an existing lot being resold by a property owner.

“We have more activity in the week we have owned this place than we’d had all year,” Fine said early last month. “People are moving forward now because it is stable. They like the story about the homeowners who have joined together and bought the place.”

Few golf course developments can claim to have that bumpy road behind them.

“Every other one has the loom of foreclosure and takeover,” McDonnell said.

Fine said few are going to emerge as intact as Balsam.

“There are so many communities in the mountains that have nothing there other than a front entrance and some renderings on paper.  Those are the places that have fallen off the end of the earth,” Fine said.

At Balsam Mountain Preserve, there is enough “critical mass” already in play, Fine said. The golf course is finished, the swimming pool has water, a restaurant and clubhouse are functioning. Roads actually lead to the lots — a novelty compared to some subdivisions that lack even that bare essential.

Most importantly, though, are the 70 homes on the ground and another 110 property owners of lots. Too many subdivisions in the mountains are empty ghost towns, and just like no one wants to eat in an empty restaurant, no one wants to be the first to build — not when it’s such a buyer’s market. And that’s why homes on the ground are an important part of Balsam’s critical mass.

 

Nowhere to go but up

As the rest of the nation plunged into a recession in 2008, WNC seemed insulated from the real estate crash — its quality of life, desirable views and retirement reputation helped it hang on.

But by the end of that year, the economy finally caught up with the region — and with Balsam Mountain Preserve. Lot sales simply evaporated.

With no cash coming in, the former developers Chaffin and Light, a highly reputable company known for massive eco-developments from South Carolina’s coast to Colorado, defaulted on its $19 million loan.

Chaffin had bargained hard for a work out, hoping to get an extension or refinance on the outstanding debt. Meanwhile, property owners at Balsam made a bid to save their own development from foreclosure. They raised $8 million and explored forming their own LLC to bail out Balsam Mountain Preserve and own the development themselves.

But the private equity firm, TriLyn, was unwilling to negotiate for anything less than a full payoff of the $19 million owed.

Marc Antoncic, the managing partner of the firm, arguably was in a tough spot. He was supposed to be earning investors a return on their money — not losing their money. So he had a choice. Cut his losses, take what he could get and get out — even if it meant selling Balsam at a rather substantial loss.

His other choice was to step in to the developer’s shoes himself, hoping to turn it around.

“You can’t rescue everything, but you can’t just sit back and hope it goes away,” Antoncic said in an interview 18 months ago, shortly after his take over. “If you bail today, you lose all that. We would turn over a good asset to someone else.”

In hindsight, it now seems he made the wrong choice.

He didn’t turn it around, and only got $6 million for the development in the end.

“Literally every deal they had on the table, whether it was Jim Chaffin or the homeowners, everyone of those was better than what they ultimately got,” Fine said.

“They had some great opportunities in front of them they chose not to take,” McDonnell agreed.

Homeowners, for their part, are optimistic for the first time since 2009 when Balsam Mountains Preserve headed down the path to foreclosure.

“Ever since then Balsam has been in a real state of uncertainty,” Fine said.

What would happen to the golf course had been one of their biggest fears. Well-groomed fairways with that perfect phosphorescent green hue come at a steep price. The golf course had been losing $1 million a year. The original developers, Chaffin and Light, were underwriting the cost of the golf course operations. Picking up that price tag is part of what sunk the developers.

After foreclosure, homeowners had to pony up the money to operate the course.

 

A new model

There are only a handful of developments in WNC in the same league as Balsam Mountain Preserve: of a similar acreage, prestige, price range and quality. And they too are seeing a comeback, suggesting the market has at long last bottomed out, Fine said.

“Prices are lower compared to where they were at in 2006, but they are coming back,” Fine said. “It sounds cliché-ish, but for someone who wants to be here this is when people want to strike. We aren’t at the bottom anymore.”

That financial strategy is part of Fine’s sales pitch. But the other part is far more emotional.

“The person who is waiting for the bottom is putting off living their life,” Fine said.

Indeed, the pent-up demand is why Fine has such a rosy outlook for 2012.

“The dynamic is people have put their plans on hold for anywhere from three to four years,” Fine said. “I’ve been sitting on the sidelines, I’m not any younger, I’m not any healthier, my grandkids are getting older.”

And that reality could drastically change the real estate paradigm in WNC. Before, baby boomers looked for lots to build their dream home on. But building a house — from deciding on a layout for the master walk-in closet to choosing the color of granite for the kitchen counter — can take two to three years. These days, prospective buyers want to get on with it — and perhaps spare their marriage the strain of a custom-built house — even if it means they won’t be picking out their own light fixtures or tile floor design.

“People want something they can move into,” Fine said. “In conjunction with that dynamic, people are also no longer buying what they can afford, they are buying less than they can afford in a lot of cases.”

People used to buy at the upper end of their limit — assuming that real estate would always be worth more next year anyway. But with appreciation less of a sure bet these days, second-home buyers are rethinking.

“Seriously, do I need 6,000 square feet in retirement? That’s how affluent people are thinking today,” Fine said.

Which means Balsam Mountain Preserve must retool its model — as with the rest of WNC’s developers.

“It is not going to be all about 2-acre single family home sites,” Fine said. “If you sit around and wait for individual home site buyers to come visit you one at a time, it will be years and years and years before you sell through all your availability.”

What’s in Balsam Mountain Preserve’s cards now would have been borderline blasphemy several years ago: smaller lots, pre-built homes, and even perhaps townhomes.

“Balsam has never had that, ever,” Fine said.

There are about 35 lots in the current phase of the development already platted and ready to sell. Another 100 or so are in the works, and will like take the form of smaller, more closely spaced lots rather than larger, spread-out ones. And, they could be sold with homes already on them rather than empty lots.

As a development, Balsam Mountain Preserve doesn’t particularly want to get into the spec home business. Developers generally sell lots, builders build homes.

But that’s where Balsam Mountain Preserve once again hopes to tap its unique base of homeowners.

Homeowners, eager to see their own community succeed, may actually finance construction of model homes by a builder. The homeowner would theoretically be helping out the builder they used and liked when building their own home, make a little money and help land new neighbors to keep Balsam Mountain Preserve stable.

“The developers who can facilitate these alliances between people who can finance — i.e., non-banks — and the builders, those are the communities that are really going to thrive in this segment,” Fine said.

Commissioners bounce subdivision regs back to Jackson planning board

Jackson County’s subdivision ordinance is destined for more tweaking by the planning board.

The planning board spent several months revising the county’s four-year-old subdivision ordinance before sending the recommended changes along to county commissioners for approval this week. Commissioners promptly sent the revised ordinance back to the planning board for more review, but not before some speakers expressed their vehement displeasure with the proposed changes. Others said during a public hearing that they, however, believed commissioners were on the right track to “streamline” the rules.

Not all the commissioners are convinced the ordinance needs changing.

“This puts the developer first, and the potential homeowner and environment second,” Commissioner Joe Cowan said, adding that he hated “to see this watered down with one fell swoop.”

While some of the proposed changes are more favorable to developers, others are more strict. Other changes are aimed at simplifying the language, such as stipulating that road building follows state standards instead of dictating those standards verbatim, as done in the current ordinance. Cullowhee resident Roy Osborn said some of the changes make sense but cautioned that he believes Planner Gerald Green’s expressed desire to “balance the needs of developers, future subdivision property owners, the environment and the citizens of Jackson County” is mistaken in its emphasis: leave out the developers, Osborn said, and the planner’s got it about right.

“This structure better prioritizes ‘needs’ from the global to the individual perspective,” he said.

Additionally, Osborn suggested adding language requiring engineers and land surveyors to provide “rigorous cost estimates” of surety bond amounts. This, he said, would help ensure that planned roads are completed if the developer defaults. He also said that if initially approved design thresholds are exceeded, such as increased slope or lessened roadway width, then a “certified roadway design professional” should be involved in a variance review.

But, Roger Clapp of the Watershed Association of the Tuckasegee River said with just a few adjustments, he could support the proposed ordinance changes.

“It is rural mountain roads that supply mud to the streams, first and foremost,” Clapp told commissioners.

And, in fact, he said, the ordinance changes proposed by Green and the planning board would largely help the environment. They would do that by reducing the footprints of roads — which would only have to be 14-feet wide instead of 18 feet.

“A smaller footprint means less construction work, thus it’s cheaper. And also less impact, which is good for the environment,” Clapp said.

On the other hand, Clapp said his conservation group would like to see the maximum slope for roads stay at 18 instead of 20 percent and an added stipulation for road maintenance agreements for small subdivisions.

“With that said, the Watershed Authority supports the bill because it does provide a step forward in environmental protection,” Clapp said.

Commissioners offered little input on the changes, but Commissioner Chairman Jack Debnam questioned why the county planner is the only one with authority to enforce the regulations and suggested giving additional county staff that authority as well.

Bryson weighs regulations to protect character

Bryson City leaders will turn to residents to help solve their own disagreements over the severity of proposed appearance standards for new development downtown.

Town leaders will host a public hearing on the ordinance, which would stipulate aesthetic standards such as architecture, building materials and landscaping, for the town. A majority of the regulations, however, apply only to the downtown area.

Bryson City does not have any guidelines for new commercial or residential buildings downtown — it’s anything goes right now. But the town began looking at adopting some standards after a building that clashed with the town’s quaint appearance served as a wake-up call.

The planning board spent three years drafting proposed regulations, but when they were presented to the town aldermen, they didn’t get a particularly warm welcome. Mayor Brad Walker believes the public does want them, however.

“There are a lot of people fighting for this,” Walker said. “I haven’t heard any negativity (about the standards) except from the board.”

The board of alderman, which have final say over whether the ordinance is passed, decided to hold a hearing to gauge public sentiment.

Alderman Jim Gribble said that the town does need some standards but described the proposed guidelines as “pretty restrictive” and “over and above what I would desire.”

Aldermen Kate Welch and Tom Reidmiller declined to comment on the standards until after the public hearing. Alderman Stephanie Treadway did not return calls for comment.

People began lobbying for some official appearance or building standards, in part, because of a tan metal structure erected on Main Street in 2006.

“We don’t have that much land anymore, and we have to take care of our land,” said Walker.

At the time, residents and business owners expressed their dislike for the building, saying it clashed with the character of Bryson City’s historic downtown.

But, landowner Tom Hurley was well within his right to build it, Walker said.

“We didn’t have any ordinances to stop that,” he said. “We decided that we didn’t want that to happen anymore.”

For a while, local shopkeepers and the Chamber of Commerce have worried that new businesses would not fall in line with the unofficial standards of the town, said Karen Proctor Wilmot, executive director of the Swain County Chamber of Commerce.

“We do feel that it is important” to have standards in place, she said. “The code was kind of designed around what the town already looks like.”

The town’s Main Street is characterized by its brick façades and small local shops. Without any regulations, property owners could install large, obtrusive signs or paint their buildings neon green.

“It’s probably a good thing to have some sort of codes to regulate,” said Town Manager Larry Callicutt. The standards are “not real restrictive,” he said.

The planning board has worked on the land use regulations for about three years.

The standards are similar to those of other town’s, Walker said.

“We didn’t want to reinvent the wheel,” he said.

Town leaders are waiting to hear feedback from residents and business owners before making any possible changes.

“They should be the ones having most of the input,” Callicutt said, adding that there is nothing in the ordinance that would prevent the town from passing some version of it.

 

Want to weigh in?

What: Public hearing about proposed Bryson City land use standards

When: Nov. 21 at 6 p.m.

Where: Swain County administration building.

 

What the proposed standards say

Although most town leaders agree Bryson City needs guidelines to regulate the appearance of new commercial development, they cannot agree on whether the proposed standards are too strict.

Here are some highlights of the 27-page draft under consideration:

• Builders are prohibited from using synthetic stucco, preformed metal siding, vinyl siding, artificial brick and exposed or painted concrete blocks.

• At least 75 percent of a storefront’s façade should be glass windows and/or door. The windows must be at least 10 feet tall and no more than three feet above the sidewalk.

• A building’s main entrance should face the adjacent street.

• Sidewalks shall have an at least five foot “clear zone.” Light poles, bicycle parking, trash cans, plants and benches are permitted between the clear zone and the curb.

• Mobile homes or trailer parks are not permitted in the central business district, but public institutions and commercial or industrial businesses may be allowed in the area pending review by the board of alderman.

• Buildings in the central business district may have a front porch, stoop or awning with a minimum depth of eight feet, a balcony with a minimum depth of six feet or a bay window with a minimum depth of four feet.

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