Swain County has lost more than $17,000 a month from their coffers, and that financial gouge may become a lot bigger following a suit filed by Graham County last month.

Graham and Swain county are at odds over property taxes collected from the Tennessee Valley Authority for the Fontana Dam and its hydropower equipment and generators. For 67 years — since the dam was built — the two counties split the revenue equally.

But Graham argued it deserves more, since more of the dam and generators are on its side of the county line. Graham succeeded in convincing the N.C. Attorney General’s Office of their position last fall, resulting in a new formula for divvying the TVA proceeds. The result: Swain gets $17,700 less a month, which is now going to Graham instead.

The October ruling stated that, according to the original channel of the Little Tennessee River, which has long been the boundary between the two counties, more of the dam and its taxable equipment belongs in Graham. And the Attorney General agreed that, if this was the case, they should get more of the money, as well.

Upon hearing this, Graham County commissioners decided not to rest on their laurels content with their newfound cash flow. They marched right up to the Graham County Superior Court and filed suit against their neighbor for 67 years of back tax revenue that Swain County gained on the erroneous measuring formula.

The suit doesn’t put a number on how much they want back, but Graham officials have pegged it at $15 million, according to an article published in the Graham Star last month. Graham named the Department of Revenue as a co-defendant to ensure they provided a formula and a number for how much Graham would be owed.

Raleigh mayor and tax attorney Charles Meeker is leading the charge as Graham County’s attorney, and he said that discussions about a possible filing started to be bandied about following the Attorney General’s October ruling.

He said the county is simply trying to recoup what was always rightfully theirs, but has long been distributed inequitably.

“Because of incorrect information from the TVA, the Department of Revenue had not distributed those payments correctly for years,” said Meeker. “We don’t know the exact amount, but the lawsuit requests the Department of Revenue to make that calculation.”

Swain County has yet to respond to the suit, but has requested a 30-day extension to file their response.

Swain County Manager Kevin King told the Graham Star last month that his county would be looking into a countersuit, seeking damages for the 51,000 acres of land lost to the Fontana Dam’s impounding in 1943. King maintained that they were never fairly compensated, especially stacked up against the mere 4,000 acres lost by Graham County. He said the county is planning a robust battle against the suit. They are due to respond in mid-February.

Technically, the TVA payments to the two counties are called Payments in Lieu of Taxes, or PILT, since government entities are not required to pay property taxes. But like property taxes, the payments by TVA are based on the value of the hydropower operation determined by the N.C. Department of Revenue and the tax rate set by the county.

By Julia Merchant • Staff writer

One day last October, Bud Dills, a longtime Nantahala Gorge resident, headed down to his favorite fishing spot. The area, located where the Nantahala River empties into Fontana Lake just past Wesser Falls, had long been popular with fishermen and paddlers. Dills, 63, had been fishing there since he was six years old.

But when he arrived, he was surprised to see a large, metal gate blocking the dirt road that was the only means of accessing the river shore.

The gate was erected by the Great Smoky Mountains Railroad. Railroad representatives said people were camping there, trashing the site with beer cans and shooting off guns, forcing the railroad to restrict access.

“We’re not trying to keep the locals out to access the river or to go fishing or hiking,” said Kim Albritten, general manager of the railroad. “That’s not the purpose of the gate. The gate is to deter overnight camping. My concern is that the railroad owns the property, and if we continue to allow camping and gunfire there, what risk does that pus us at the liability level?”

The railroad’s reasoning hasn’t stopped locals from mourning the loss of a beloved fishing and paddling spot. Dills described the area as “extremely popular,” attracting thousands of visitors each year to fish, boat or simply hike. The dirt road allowed vehicles to tow larger boats down to the water. The spot was also popular with the elderly, handicapped, or families with kids, since they could ride down to the water rather than attempting the nearly one-mile trek.

Ken Kastorff, owner of Endless River Adventures, said he’s irked that most people didn’t know the gate was going up.

“The thing that bothers me the most about this is that after the usage for 60 odd years, they all of a sudden close it off, and not even talk to any of the community,” Kastorff said. “If there was a problem down there, the local community, as well as the rafting companies, would have all been more than happy to work with the train to do whatever is necessary to keep that area open.”

Some people, such as Dills, don’t buy the railroad’s explanation that people were trashing the area and shooting firearms.

“The railroad said people were down there dumping garbage,” Dills said. “That’s not true. It’s a very clean area. They said people were shooting, but anyone could have been down there hunting during October.”

Kastorff said regardless of the reasons the gate was put up, it wasn’t the best way to address the problem.

“The problem is that putting a gate up there isn’t going to solve any of that,” Kastorff said. “There are still people that are down there that are camping.”

Indeed that is the case. Just a couple of weeks ago, the sheriff’s department got a call about three men with a beer keg shooting their guns, Albritten said.

“This is an ongoing problem. There’s a lot of trash being left behind by campers — not just a beer can or two, but kegs of beer are being taken down there.”

Albirtten said people are still welcome to walk past the gate to fish or access the area during the day.

Unforeseen consequence

The railroad’s attempts to prevent access to the area have created another dilemma that has only emerged with the start of rafting season. The popular fishing and camping spot also served as a key location for rafting companies to retrieve boats and paddles that had been swept past the commercial boat takeout.

“If we lose a boat or a paddle, or if a boat flips at the falls and goes over Wesser, we used to be able to drive down there and recover it,” said Steve Augustine, manager of Endless River Adventures. “Now, you can’t do that.”

The loss of that access point could present a potential safety issue, since boats that travel over Class V Wesser Falls need to be reached as soon as possible.

“If our boats go over the falls, especially if there’s people in them, we have to get down there immediately,” said Dills.

The railroad has given Nantahala Outdoor Center a key to the gate to be shared by the rafting companies, said Albritten.

Albritten said she told Brenda Dills, president of the Gorge Outfitters Association, about the key’s location at the NOC retail store. Albritten said Dills wasn’t happy that she and other outfitters will have to rely on NOC to open the gate.

“That wasn’t the ideal situation for them,” said Albritten. “They’d like to go down the road and grab rafts or paddles, but I can’t make 19 keys available to all the rafting companies. There has to be some level of control. However, I’m not against having several keys for some of the larger outfitters who may need more access.”

A new hiking club has joined the ranks of an already burgeoning collection of trail trotters in WNC.

By Julia Merchant • Staff Writer

Two of the three boat docks on the Swain County side of Fontana Lake shut their doors before Labor Day, traditionally one of the biggest money-making weekends of the season for lake businesses.

By Julia Merchant • Staff Writer

One of the driest periods in the last 118 years is prompting TVA to draw down waters on Fontana Lake to wintertime levels, a move costing boat dock owners thousands of dollars of business.

By Michael Beadle

If you’re a mountain biker looking for a challenging course that’s as cold as it is fun, check out the Icycle Mountain Bike Event at Fontana Village this weekend.