Franklin revs up for foray into motorcycle scene

Motorcycle rallies are all the rage these days in Western North Carolina, and Franklin tourism leaders are busy finalizing plans to take their first bite out of that tempting economic pie.

“Rumble in the Smokies” is scheduled to take place for three days next August. This is Macon County’s initial foray into hosting a large-scale, officially sanctioned motorcycle rally.

Starting in January, the event’s promoter will be hyping the rally via booths setup at events such as the Great American Motorcycle Show in Norcross, Ga., and the International Motorcycle Show in Charlotte, plus handing out fliers at rallies later in the year in Daytona Beach, Fla., and in Myrtle Beach, S.C.

“Riders want to see the vendors, and what Franklin has to offer, and to get out and ride. What better place to lay your head down at night after riding than in Franklin?” said Sylvia Cochran, of USRiderNews, the Georgia-based promoter, when asked whether she was concerned that the WNC motorcycle-rally angle might be a tad oversaturated.

Listeners were left to extrapolate from this response that no, Cochran in fact doesn’t consider the market too crowded.

But such events have become increasingly commonplace in WNC over the past decade, perhaps nowhere as much as in Maggie Valley, boasting five major rallies every year. The rallies, along with Maggie’s proximity to the Parkway and a world renowned motorcycle museum, have cemented the town as a motorcycle haven, witnessed by the diners, bars and motels plastering their placards with motorcycle friendly messages.

“It is extremely important to Maggie Valley’s economy. I’d estimate it at well over 50 percent,” said Marion Hamel, director of the Haywood Hotel and Motel Authority.

Cherokee also has its share of rallies. The Survivors Motorcycle Rally was held there twice a year since the mid-1980s — until this year when Cherokee pulled the plug on the twice-a-year event.

And that vacancy in the regional rally calendar, according to Franklin tourism officials at a Tourism Development Authority workshop last weekend, is helping ensure the likely future success of their new rally.

But they might be counting Cherokee out of the mix a bit too soon.

Matthew Pegg, executive director of the Cherokee Chamber of Commerce, said that although Cherokee didn’t have the spring or fall rally in 2011, “it is something that is being looked at for 2012,” as well as other events.

“I don’t believe the market is oversaturated, but in order to have a strong rally there should be something that sets it apart from the others,” Pegg said. “WNC is an ideal setting for motorcycle enthusiasts and continues to be a strong market for regional tourism. With the natural beauty we enjoy, and an abundance of great riding roads, people are naturally drawn to the area. Our job as a region is to take good care of them while they are here.”

Maggie Valley business owner Robert Leatherwood believes another motorcycle rally will prove good news for all merchants in the region. He said it would help to further solidify the grip on this all-important motorcyclist-as-tourist niche.

Rallies such as the Rumble in the Smokies, are the best way to attract those particular dollars, he said.

“I’m glad that Franklin is doing one,” Leatherwood said. “We’d help if needed — it’ll be good for WNC, and it’ll do good for Franklin to have one over there.”

Leatherwood owns the new Stingrays bar, strategically positioned near Maggie Valley’s Wheels Through Time motorcycle museum. During rallies, he gets crowds of motorcyclists visiting his bar. His waitresses, dressed in bikinis, offer free bike washes, a popular draw indeed, Leatherwood said. And he opens the normally day-closed bar instead of just at night.

Speakers urge state to deny rate hike request

Economic times are simply too hard, and Duke Energy is being too greedy for the state utilities commission to allow the company to hike its rates, many of the speakers taking advantage of a public hearing in Franklin said last week.

Some 30 speakers used the microphone at the Oct. 26 hearing, which attracted about 100 people from North Carolina’s westernmost counties. A similar hearing drew an overflow crowd Oct. 11 in Marion, the only other forum focused on the hike that was held in Western North Carolina.

Duke Energy wants to raise residential rates 17.4 percent and, on average, raise commercial rates by 15 percent. The increase, which would take effect in February, would add about $19 a month to the typical residential customer’s bill of about $97.

Three-fourths of the increase would help pay for $4.8 billion for building new power plants and for pollution-control equipment to help the environment.

Duke District Manager Fred Alexander told the commission the increase in rates is necessary to help Duke continue providing the “vital service” of electricity.

“I’m here tonight appealing to you on the behalf of the clients that we have at Second Mile Ministry,” said Hazel Finley. “These are mainly elderly people who are on a fixed income,” and underemployed or unemployed people “who have exhausted” their benefits. “I see no reason for Duke to get (an increase) on the backs of these people who are, so desperately, trying to make it one day at a time here in Macon County,” she said.

Many speakers told the commission members of their anger at Duke’s seeking more customer dollars when, in 2010, the company reportedly earned $1.3 billion and paid its chief executive $6.9 million.

With those sorts of profits, “then why does Duke believe that they need to take any more of my money?” Carl Iobst of Jackson County queried the commission.

A rate hike, said Bob Harold of Stanley Furniture in Robbinsville, could possibly take the furniture manufacture under and put up to 420 people out of work. Stanley Furniture is Graham County’s largest employer.

Stanley Furniture pays Duke $1. 2 million under the company’s current rates for electricity.

“It will put us in a very noncompetitive situation where it will increase our electricity bill per year $180,000,” Harold said. “I feel like the rate increase is too exorbitant.”

Other businessmen attempted a softer approach, with Nantahala Outdoor Center’s John Burton in the particularly unenviable position of trying to urge caution about raising rates while not criticizing the very entity that controls the water flow whitewater rafters, and the company, depend upon.

“I’m counting on you guys to vet the proposal,” Burton told the commission. “To make sure … that it’s reasonable. While the rate hike is painful, some of it is necessary to keep doing what they do.”

F.P. Bodenheimer, a Franklin businessman, spoke more directly in Duke’s favor, noting the importance of a good energy supply to power manufacturing machines. In the older days, when Nantahala Power and Light delivered the energy to his lumber-based business, reliability was questionable and the power sometimes failed, Bodenheimer said.

That costs businesses time and money that simply aren’t expendable, he said.

“But, we do have one opportunity that the homeowner does not have,” Bodenheimer said. “We can pass on some of the cost to customers who buy our product … possibly. But for the homeowner, there’s no place for them to pass it.”

Ken Brown of Jackson County spoke both as a Duke customer and as a representative of the environmental group Western North Carolina Alliance. Brown noted the lack of competition facing Duke here in the Southeast and linked that to the company’s reluctance, in his view, to offer competitive rates. The energy company’s grasp might just get tighter in the days to come if a merger proposal with Progress Energy is approved.

“In North Carolina, Duke Energy and Progress Energy are conspiring to monopolize electric generation by asking the N.C. Utilities Commission to approve a merger that will squash competition in North Carolina,” Brown told commissioners, a sentiment echoed by Swain County resident Joe Deddo.

Brown also spoke to cost overruns at the controversial Rutherford County-based Cliffside plant being passed on to North Carolina customers, for electricity to leave the state and serve customers in South Carolina.

This, Brown said, would “unnecessarily burden business, industrial, municipal and residential ratepayers with a third rate increase in two years to pay for an outmoded facility.”

Other speakers also had strong environmental concerns and said they wanted to see Duke turn toward more earth-friendly sources of energy.

“I want cleaner energy,” Scott Burns of Franklin told the commission before opposing the rate hike as “outrageous” on Duke’s part to even request.

Hello Walmart Supercenter; hello vacant Walmart shell

When Walmart of Franklin moves from U.S. 441 to its new location next spring, at least two — perhaps three — of the other businesses in Holly Springs Plaza will move right along with the retail giant.

That’s not a happy prospect for the strip mall’s nine or so remaining tenants. Those business owners are looking at working in a virtual ghost setting if new merchants don’t come in to fill the void of those leaving.

The Walmart Supercenter will be at the corner of Wells Grove and Dawdle Mountain roads, just off the U.S. 441 bypass on a 33-acre site.

“This place will pretty much be empty,” said Jordan Myers, an 18-year-old Franklin native who works at Cato in Holly Springs Plaza. Her job, via her employer, is making the shift with Walmart to the new site, along with Shoe Show, and, reportedly, Dollar Tree, though officials in that store declined to comment. “Maybe people will put some boutiques in,” Jordan said.

Maybe.

But that didn’t happen in Haywood County in November 2008 when Walmart made the move from Clyde to Waynesville to build a new super store. In Haywood County, Walmart left behind a huge, vacant building with an equally huge, vacant parking lot in front.

Finally, in early 2010, Haywood County’s commissioners decided to purchase the vacant shell to house the Department of Social Services and Health, which had long awaited a move from their aging facilities. The new county offices will cost taxpayers an estimated $12.5 million. A facelift of the building is under way now.

Franklin Manager Sam Greenwood said the soon-to-be-vacated building in Franklin is serviceable, and could possibly be repurposed for another company.

Maybe.

There is some talk about town that Ingles might acquire the shopping center, and build a larger grocery store to compete with Walmart.

“It’ll shut this place down,” predicted Irene Hughes of Walmart’s impending move.

The Franklin resident was overseeing a Toys for Tots collection drive from a site in the Holly Springs Plaza.

Hughes currently drives to neighboring Clayton, Ga., to a Walmart Supercenter there for groceries. Though she’s not a fan of the new Franklin site because it might cause traffic problems for two nearby schools and people making their way through the area, she readily admitted, “it’ll be more convenient than driving to Clayton.”

“And, it’ll mean more jobs, because they’ll need more people,” Hughes said. “But what about all these places that will be sitting empty? What will happen to them?”

Indeed.

“It’s great to be one of the retailers going, and not staying,” said Ali Travis-Bonard, assistant manager of Shoe Show. “I’m really looking forward to it — we have a space issue here.”

Unlike Hughes, Travis-Bonard believes Walmart’s site selection for the new store is “ingenious — because everyone needs to go for something at Walmart after school.”

Kim McCloud, who works for U.S. Cellular in Holly Springs, is one of the retailers staying when Walmart leaves. She, however, isn’t particularly worried.

“We have a steady base of customers, people who have been with us for awhile,” McCloud said. “I really don’t think it will hurt us.”

What’s going on, Franklin? Town leaders to stroll back into office unchallenged

In a town that has long thrived on competitive, and sometimes markedly heated, political contests, the prospect of an incumbents-only race this November in Franklin seems ghastly. Even to several of the shoo-in incumbents themselves.

“Maybe they’re afraid they might actually get the job,” a curmudgeonly sounding Mayor Joe Collins said when asked for an explanation.

“Maybe they love you, and the voters think you’re a fantastic mayor?” he was queried.

“No, no, no,” Collins replied unequivocally. “It’s just that nobody is running against anybody.”

Collins, unless upset by an unknown, unexpected and unlikely write-in candidate, will win a fifth, two-year term in office. Also running without competition? Four aldermen candidates: Bob Scott, Farrell Jamison (appointed to fill the unexpired term of the late Jerry Evans), Joyce Handley and Verlin Curtis.

It isn’t as if there aren’t important issues in Franklin. The board will be hiring a new town manager to replace governmental veteran Sam Greenwood, and a new police chief to replace Terry Bradley. Several more of the town’s top employees have enough years in that they could opt to leave, too.

“It is nice not to have to go through the process of putting up signs, raising money and going through the suspense of how the election comes out,” Collins acknowledged, “but it would absolutely be better” for the town if there were competition.

“That brings discussions, and different ideas, and maybe even different people around the table,” he said.

George Hasara, co-owner of Rathskeller Coffee House, a popular Franklin watering hole and unofficial discussion-central for the town, agreed with Collins that “it’s a shame” to have uncontested elections.

“Everyone should be challenged,” Hasara said. “If nothing else, to highlight the issues. But, sometimes it just happens that way. The town’s not rife with corruption — these are good people, so there’s no groundswell of indignation.”

Alderman Scott, who came within 14 votes of unseating Collins as mayor during the last election, agrees with his former political adversary that the lack of competition really isn’t healthy for Franklin.

“I can’t explain it,” Scott said. “I have two theories. Nobody wants to have anything to do with us or else we are doing such a good job nobody wanted to interfere with us. That’s my theories, and I am sticking with them. I am disappointed that there is no opposition. No opposition takes the fun out of politics.”

Millie Griffin, who co-owns Millie and Eve’s Used Bookstore on U.S. 441 south of town, believes the apathy in Franklin is simply a reflection of overall problems at the local, county, state and federal levels. She added that “outsiders” probably don’t signup as candidates because, “If you’re not from this area, you won’t get in — so why bother?” And that right there, Griffin said, narrows the pool of contenders considerably.

“‘Everybody’s happy,’ you could say. But a cynic would say, ‘Nobody gives a rat’s ass, they don’t want to be burdened with it,’” soon-to-retire Town Manager Greenwood said in his usual polished diplomatic manner. “I just hope it is not going to be the new trend. It would show that people aren’t interested. And that’s really not good for the community, long term.”

Pumpkinfest serves up fall variety Oct. 22

Historic Downtown Franklin is gearing up for the 15th Annual Pumpkinfest to be held from 9 a.m. to 4 p.m. on Saturday, Oct. 22. During this event you can take part in some traditional and some very non-traditional fall festivities.

Bring your pumpkin (or purchase one downtown) and sign up early for the World Famous Pumpkin Roll sponsored by the Franklin Fun Factory. The “roll” takes place from 10:30 a.m. to 2:30 p.m. with signup running from 9 to 1. The winner receives $100 cash. Other highlights of the day include a pumpkin carving contest sponsored by DNET, a costume parade and contest along with crafters, food, and live entertainment for all ages.

Among this year’s acts scheduled to perform is Magic by Chaz. Magician Chaz Misenheimer, a North Carolina native, is a festival specialist with more than 20 years experience and though he often performs from the stage, he’s best known as an elite roving entertainer.

Roxy, the miniature horse, will be back offering rides to kids beginning at 10 a.m. Roxy, a pintaloosa, will be located in front of the Macon County Historical Society on Main Street. There is a rider weight limit of 80 pounds. A small fee will be charged.  

www.pumpinfestfranklin.com or 828.524.2516.

Dog park envy grips pooch owners in Sylva, Franklin

Efforts are well under way in both Sylva and Franklin to build dog parks, places where folks’ canine companions can run off-leash in safely fenced, assigned areas.

If the two communities do build dog parks, they’ll be joining their neighbors to the east: the town of Waynesville already has two fenced romping grounds for dogs along Richland Creek Greenway. The town of Highlands in Macon County also has a half-acre dog park, complete with a five-foot-tall fence. Highlands is roughly a 40-minute drive from Franklin, however, putting it out of reach for regular use by Franklin’s dog owners.

Friends of the Greenway in Franklin has been talking about building a dog park for about six months, according to Doris Munday, a member of the nonprofit support arm for the greenway along the Little Tennessee River. Her dog “uses the mountains” as its dog park, Munday said, but that hasn’t blinded her from seeing the needs of others.

Dog owners, if their pooches are leashed and they cleanup waste deposited by their animals, can use the nearly five-mile paved greenway path in Franklin. But the dogs are not allowed off-leash along the popular trail, where upwards of 20,000 people a month can be found during the summer months. Munday said there have been some problems with “neighborhood dogs” trotting about the greenway unleashed and uninvited and apparently illiterate, too; these rowdy dogs are brazen in ignoring rules about leashes and cleanup that are posted along Franklin’s greenway.

Plans this week call for the Friends group to check in with the Macon County Board of Commissioners to make sure the county doesn’t have any objections to a dog park.

In this case, asking permission seemed optimal to begging forgiveness: Munday said no one is exactly sure whether commissioners’ permission is needed for the project to move forward, but that the group decided it seemed proper to find out.

Assuming everyone is OK with the idea, private funds would be solicited to purchase fencing. The hope is to enclose the dog park this winter. Later, if people want to donate more money, the dog park could be enhanced with additional doggie attractions, Munday said.

Some dog parks have separate areas for small and large dogs. Other parks even offer such amenities as dog-agility courses. One standard feature, which would be included if a dog park is built in Franklin, are baggie dispensers so that dog owners can easily cleanup any canine deposits.

Other than the upfront cost of fencing, maintenance on dog parks is relatively minor. In Waynesville, the Haywood Animal Welfare Association buys non-toxic flea control and volunteers regularly sprinkle it on the grass.

In Jackson County, an ad hoc group of dog owners in Sylva requested via a letter sent to the county that they be allowed to use a portion of Mark Watson Park on West Main Street. The Sylva Dog Park Advocates noted in the letter, sent to county officials last month, that it believes a dog park would be “a low cost yet high benefit” addition to Jackson County.

The letter is signed by Stacy Knotts, who serves as a town council member but isn’t acting in that official capacity on this particular project.

She wrote that the group of dog owners believes 10-acre Mark Watson Park, a county-owned facility, would be the best place for a dog park because it is centrally located in Sylva on the county’s (unfinished) greenway; there is open space in the park; there are already pet-owner education classes and the “Bark in the Park” festival taking place in Mark Watson, and such a park would encourage Jackson County’s residents “from letting pets run free on the ball fields, particularly the newly designed fields in the park.”

County Manager Chuck Wooten said the request is being reviewed.

Hike, bike, paddle, fish, climb: OutdoorAthlon coming to Franklin has it all

Joe and Dawn Johnson of Atlanta might be making another trip to the mountains next weekend after learning about the WNC OutdoorAthlon in Franklin Oct. 8 and 9.

The couple both enjoy mountain biking, and she jogs routinely for exercise — making them perfect candidates to enjoy a smorgasbord of events lined up for the family outdoor recreation event. The Johnsons were on the Blue Ridge Parkway last week riding motorcycles and enjoying the start of the fall’s leaf show.

“It sounds like fun,” Joe Johnson said, before openly speculating with his wife about whether they could angle more time off from work to make the trip back that soon to Western North Carolina.

That’s exactly the kind of response Rob Gasbarro and Cory McCall of Outfitter 76 in Franklin were hoping to generate. The business partners believe Macon County is destined, by virtue of its location and superb outdoor opportunities, to become as big an outdoor draw as such traditional stalwarts as the Nantahala Gorge.

The future’s uncertain. But what is certain is that Gasbarro and McCall, who are touting the event as “the biggest little event in the Southeast,” are hoping, even expecting, thousands to show up for the OutdoorAthlon.

So what is it? Everything, really, to do with the outdoors — think Mountain Sports Festival in Asheville; or, the Guest Appreciation Festival at the Nantahala Outdoor Center.

Here’s what’s lined up: Food, music, an outdoor triathlon, a kid’s duathlon, a 5K, an Ultimate Frisbee Team Tournament and corn hole tournament. Free clinics for fly-fishing, paddle sports, stand-up paddling, rock climbing; do-it-yourself bike maintenance and demos, backpacking and camping demo’s and more. The outdoor triathlon offers a twist on the standard trifecta — with a line-up of paddling, mountain biking and trail running instead of swimming, road biking and road running.

There are 40 vendors scheduled, plus eight food vendors. The event is free.

“It’s going well,” Gasbarro said of the organizational aspects of putting together such a gargantuan undertaking. “We’ve got lots and lots of volunteers.”

The two men also have lined up $7,000 worth of “giveaways” from outdoor specialty companies.

The events are taking place at the Cullasaja Park along Macon County’s greenway, located off Fox Ridge Road near the flea market on Highlands Road in Franklin.

Gasbarro, taking a break from minding the front desk last week at Outfitter 76 to chat about the festival, noted that remote parking is being set up, and two buses courtesy of Macon County Schools will be used to shuttle people to the event.

Visit www.outdoorathlon.com for more information.

 

WNC OutdoorATHLON

The event runs Saturday, Oct. 8, and Sunday, Oct. 9, in Franklin at the Cullasaja Park. There is no entrance fee.

Events start both days at noon. Here are some key events:

Saturday

• 12:30-2 p.m. Honey Locust 5K

• 12:30 Bicycle maintenance clinis

• 1 p.m. fly fishing clinic

• 1 p.m. beginner mountain bike ride

• 2-3 p.m. Kids’ duathlon

• 2 p.m. intro to kayaking

• 2-5 p.m. Ultimate Frisbee Tournament

• 3:45 p.m. intro to disc golf

Sunday

• 12 p.m. putting and long drive disc golf competition

• 12 p.m. fly casting clinic

• 2 p.m. backpacking clinic

• 12-3 p.m. Paddle parade on the Little Tennessee

• 2-4:30 p.m. Adventure Triathlon (paddle, mtn bike, trail run)

• ­­3 p.m. intro to stand-up paddling

From bankruptcy to riches, Phil Drake builds a business empire

Phil Drake acknowledges that he has two kinds of enterprises. There are those launched or purchased for strategic business reasons; others he owns to ensure family members in Macon County have places to work.

Drake has a lot of family, and he owns a lot of businesses: some 18 or so under the Drake Enterprises umbrella alone. These include a tax software company, an internet company, a performing arts center and a printing press.

Here’s how Drake and Drake Enterprises work, in what’s virtually a textbook model of a business practice dubbed “vertical integration,” or expanding within the core company’s supply chain of operations:

• Drake Enterprises was responsible for 75 percent of the work at Macon Printing in Franklin. Drake, once alerted to that fact by the shop’s owners, bought the business.

• Drake needed more reliable internet service than was available in WNC, so he joined with the Eastern Band of Cherokee Indians to create BalsamWest FiberNet. The company, headquartered in Sylva, has built 225 miles of underground fiber in Western North Carolina.

• Drake Enterprises had extensive marketing needs; Drake launched PRemiere Marketing in response. PRemiere serves as an in-house marketing service for Drake Enterprises, plus handle advertising and marketing for “outside” companies.

• Drake’s companies use computers extensively. Today he owns TechPlace outlets in both Franklin and Hayesville, specializing in computer and cell-phone sales and repairs.

Not bad for a boy from Franklin whose mother used to come home from work with bloody fingers from making denim jeans for Wrangler at the local factory. These days, Drake owns that place, too — he turned the 56,000-square-foot building into a “Fun Factory” for kids, complete with arcade games and a go-cart track.

 

Buying into the Drake dream

More than 500 people work for Drake. Key employees, those he wants to keep in the company for life, are encouraged to buy stock in Drake Enterprises using money Drake loans them. These employees now own 10 percent of the company.

“I picked employees who are loyal, have the same vision I do, and who don’t have an exit strategy,” Drake said. “I hope to work there until I die; the employees I picked, I hope they’ll work there until they die.”

With that many employees, there are that many people in WNC who owe Drake their comforts and livelihoods. His legion of supporters view Drake as a man who takes care of family and community, pays his dues and debts, and gives proper homage to God.

“He has worked very hard for what he’s got,” said Ronnie Beale, a Franklin native and Democratic county commissioner who owns and operates a construction company in Macon County. “We might differ politically on some things, but Phil has a heart for Macon County and its people.”

Drake would like to branch out of the private sector and serve in Congress. To date, however, his wife has made it clear she’d rather he not. Drake was equally clear in a recent talk in Asheville to area business owners about his intention of honoring her wishes.

Don’t count Drake out of politics too quickly, however. When you examine his history, this is a man who has managed to do pretty much whatever he’s wanted, one way or another. Through sheer perseverance, an uncompromising business intellect and an almost uncanny ability to time his business deals, Drake has prospered, and the extended Drake family has prospered right along with him.

“If I can create a job, make a little money or break even, I’ll do it,” Drake said. “God put me in the right place at the right time, and I really hit a homerun in software. On some of these other businesses, I’ve gotten some singles and some doubles. I’m still out there trying to find that next homerun.”

 

From bankruptcy to wealth

Drake’s rags-to-riches, Horatio Alger Jr.- type tale takes something of an odd turn in 1981, when shortly before the age of 30 he plunged into bankruptcy. Drake, a proponent of small government who has spoken at area Tea Party venues, was forced to rely on food stamps to help feed his family. Today he expresses gratefulness for that particular program of the federal government.

Drake grew up on a farm. He went to Davidson College after graduating from Franklin High School, and then headed into neighboring South Carolina. Drake taught high school math for three years in that state before deciding he couldn’t support a family on take-home pay of $425 a month.

Drake returned to Franklin in 1976 and joined his father in the family tax business. These were the days when taxes were done with pencil and calculator — pre-computer and pre-computer tax programs. Drake said he just knew there had to be a better way of preparing people’s taxes.

Drake bought an IBM computer for $22,385 in 1977 using borrowed money. At his son’s urging, his father mortgaged a piece of property to cover the cost. Drake was confident he could program the new computer — which, in fact, he did. Drake developed an accounting program that he was soon selling to other accountants.

He remembers boasting to his wife, “I’m going to be a millionaire by the time I’m 30.”

There was one problem with Drake’s plan, however. Each year the computer needed updating. The updates required new, expensive computers — not the relatively cheap, internal fixes you’d get today. Drake kept borrowing and buying new, expensive computers.

“I was $100,000 in debt just from buying computers,” he said.

Then he left the state and went to Kansas City for a time to help another company automate its tax service, putting faith in an on-site manager to take care of his business at home.

That didn’t happen. The Internal Revenue Service didn’t get its due in the form of payroll taxes. One day a federal agent informed Drake the IRS planned to padlock the family’s office door and seize their business equipment if the government didn’t get its money.

Drake didn’t have that kind of cash. He instead drove to Asheville, retained an attorney, and filed for bankruptcy.

Time seems to have helped heal the sting of that decision, and there’s clearly balm on the wound from having, Drake emphasized, paid back every dime to every creditor involved. He estimated that took about six years.

Drake described learning some hard lessons during those times. About not using money you don’t have, and about not getting out on a limb and sawing it off behind yourself.

“You know the only thing my wife and I could talk about then? Money. We didn’t have any, and that’s all I could talk about,” Drake said.

He’s self-critical, too, of the 100-hour weeks he once worked, remembering tearfully how one of his three children begged him over the phone, “Daddy, please come home.” Drake described his younger, driven self as “ornery,” a perfectionist who had difficulty letting workers write some of the most basic software code the business needed.

Now, he said, he hires good people and gets out of their way.

“I’m getting easier to work for,” Drake said.

And, he turned to his faith.

“This was a life-changing experience for me,” Drake wrote of the bankruptcy in an article published by the National Christian Foundation, on whose board he serves. “I came to the place where I finally said, ‘God, I’ve messed this up. From now on, I’ll manage your business, and Lord, would you manage mine?’”

The National Christian Foundation is based in Atlanta, Ga. It is the largest Christian grant-making group in the world, self-reporting that it has received more than $4 billion in contributions since 1982 and given more than $2.5 billion in grants to thousands of churches, ministries, and nonprofits. While board members such as Drake are technically elected each year, they are expected to serve for life.

 

An ‘angel’ investor

In a downward spiraling economy that has seen countless businesses go under, Drake has instead thrived — these days he’s emerging as a self-described “angel investor,” a man with enough money at his command to select only those investments that interest him. He likes to buy-in low, on the promise that the sellers will get their money back, and more, if the targeted business turns around. That minimizes his risk, and promotes cooperation to get the invested-in business moving in the right direction.

“We don’t pay more than we can sell it for tomorrow,” Drake said.

Bob Dunn, director of consulting for Mountain BizWorks, said Drake motivates companies he invests money into.

“His deals are tough love, but they have an attainable upside,” Dunn said.

Cecil Groves, a former president of Southwestern Community College who is overseeing BalsamWest for Drake and the Eastern Band, described Drake as a man who reaches business decisions quickly and decisively. Groves also sees Sharon Drake as a true partner of her husband, in every sense of the word, including in the business side of his life. Sharon Drake handled accounting and human resources for Drake Enterprises for two decades.

In addition to an ability to sift through facts and data quickly, Phil Drake has that near perfect pitch when it comes to timing on business deals. He was among the first in the nation to start filing taxes electronically, for example.

Drake is also a stickler for customer service — in January, just as the tax season kicks off, his business gets 14,000 to 15,000 calls a day from customers needing support using his tax software. Drake has call centers in both Sylva and Hayesville.

He expects the support line to be answered in three rings, an eight-second wait on average. This, Drake said, compares to the 45-minute wait time of some competitors.

Ron Haven, a Republican commissioner in Macon County, is an unabashed fan of Drake’s and of the business empire he’s built.

“He could have picked up and moved everything away,” Haven said. “But he’s stayed here instead in Macon County, and helped this community.”

 

Drake’s political future, if there is one

On YouTube there’s a video from an April 16, 2009, Tea Party event in Franklin featuring Drake. He sounds familiar Tea Party themes, such as: “you cannot legislate the poor into prosperity; you cannot borrow your way out of debt;” “If you take the resources from successful companies and reward those that are failing, that’s a picture of our bailout, and that’s unacceptable.”

For the most part, Drake appears on the video reasonably polished and smooth during this minor political foray. But there’s an awkward intellectual straddle when he attempts to pin the U.S. deficit, in large part, directly on abortion, which as a fundamentalist Christian, he strongly opposes.

“We have killed 30 million people who could work today and pay into the social security administration,” he told the crowd.

Drake said though he certainly would love to serve in Congress, he’s not really willing to run.

“I think I’d have some trouble,” Drake said. “I’m somewhere to the right of Jesse Helms. So getting elected might prove tough.”

 

The Drake empire:

• Drake Income Tax and Accounting: founded by Phil Drake’s father in 1954, Drake sold it to employees in 2004 for $1 on the 50th anniversary of the business’ founding.

• Drake Software: Software for accountants and tax preparers. Headquartered in Franklin, with additional call centers in Sylva and Hayesville.

• WPFJ Radio: Commercial AM station, Christian programming, in Franklin. Donated this year to Toccoa Falls College in Georgia, a Christian college. The move will save Drake Enterprises $50,000 a year, Drake said, and the college plans to continue with the same Christian-based music and programs.

• WNCSportsZone: Sports equipment and athletic shoes and apparel. Stores in Franklin and Waynesville.

• Dalton’s Christian Bookstore: Stores in Franklin and Waynesville.

• Macon Printing: A commercial printer in Franklin. Publishes The Real Estate Buyers Guide in five communities.

• PRemiere Marketing: Advertising and marketing agency based in Franklin.

• Franklin Golf Course: Nine-hole public golf course, driving range, pool.

• DNET Internet Services: Dial-up, DSL, wireless, webhosting. Based in Franklin.

• BalsamWest FiberNet: A partner with the Eastern Band in building underground fiber.

• TechPlace: Computer and cell-phone sales and repair, stores in Franklin and Hayesville.

• The Fun Factory: Family entertainment center in Franklin. Includes the Pizza Factory and The Boiler Room Steakhouse in the same building.

• The Smoky Mountain Center for the Performing Arts: 1,500-seat theater in Franklin, with orchestra pit and full staging; 80 events per year.

• EPS Financial: Process banking transactions and debit-card transactions. Based in Easton, Pa.

• GruntWorx: Converts scanned documents into readable and searchable PDFs and can import data into tax software. Originally based in Massachusetts, Drake moved the company to Derry, N.H.

• Stellar Financial: Drake is an investor in this Stroudsburg, Pa., company providing software and integrated management services for nonprofit donors.

• Sylvan Sport: Drake is an investor in a Brevard-based company that builds the “GO,” a camper.

• Galaxy Digital: Drake is an investor in this Asheville company that creates digital campaigns and works on web communications.

• Drake Capital: Drake is a partner in this Matthews-based real-estate acquisition and development company.

To Duke’s chagrin, dredging may be in the cards for Emory

State and federal environmental agencies say Duke Energy might have to scoop out silt-filled Lake Emory as part of its permit to operate to the small dam outside Franklin.

Backlogged sediment can’t be allowed to build up forever, said John Dorney, wetlands and stormwater program development supervisor for the N.C. Division of Water Quality in Raleigh.

“It becomes one big mud flat,” Dorney said.

But Duke Energy District Manager Fred Alexander disputes that Duke will be made to dredge sediment from the lake.

“Let me be perfectly clear. We are NOT dredging Lake Emory,” Alexander said in an email response to The Smoky Mountain News.

Alexander said that Duke may do some “limited sediment removal,” but not a comprehensive dredging of the entire lake.

“That is not in our plans, nor a regulatory requirement,” Alexander said.

Yet according to a state water quality permit, how much sediment Duke will have to remove is not yet determined.

Duke is being required to develop sediment management plans for dams on the Oconaluftee River in Swain County and on the Hiwassee in Clay County. All three are known as “run-of-the-river” dams, where the respective dam transforms the river behind it into slow-moving backwater — more so than a bona fide lake. Lake Emory, located near Franklin, is 174 acres in size.

The state Division of Water Quality mandated that Duke address sediment removal as a condition of the water quality permits issued for all the three dams in summer of 2010.

“It could be one thing they have to do is dredge,” Dorney said.

The same requirements are being copied verbatim into the federal licenses for the dams being issued by the Federal Energy Regulatory Commission. Once issued, Duke “will absolutely have to develop a sediment management plan,” said Mark Cantrell, a biologist with the U.S. Fish and Wildlife Service. “FERC indicated Duke would need to include some management and not just monitoring — and that could include dredging.”

With Duke’s license for the dam up for renewal, that opened the door for new sediment rules to be imposed. And state and federal environmental agencies walked right in.

In short, Duke must conduct a sediment pilot study at one of the three dams, and a long-term sediment management plan after that. Cantrell said once the license was issued, it would trigger the sediment management plan within approximately the next six months.

Dorney knows Duke needs to do something about the mounting sediment behind the dams, but exactly what that should be — how much should be removed, how often, by what means — is up in the air pending the pilot study.

“We just didn’t know enough about how big the problems are and how fast they are developing and what mechanisms could solve the problems,” Dorney said. “The pilot study will get us that additional information.”

Dorney foresees Duke being made to remove some sediment from above Porter Bend Dam one way or another, however.

“That is the intent,” Dorney said.

And there’s only two ways to do that: dredge or flush it downstream.

When Duke tore down the Dillsboro dam, it lobbied hard for the “flushing” option. It argued that simply flushing the estimated 100,000 cubic yards of sediment downstream a bit at a time wouldn’t hurt the environment. It was also the cheaper of the two options. Ultimately, however, state and federal environmental agencies made Duke excavate much of the sediment (more than 63,000 cubic yards) from behind the dam rather than flushing it.

Dorney said it is too early for Duke to say whether it will or won’t dredge Lake Emory; and, he said, Duke isn’t the one that gets to decide that.

“They would have to say at this point they don’t know if they will have to do any dredging pending the results of the pilot study,” Dorney said.

The decision ultimately rests with the state and federal environmental agencies overseeing the water quality permits for the dam operations.

At stake is one of the most unique stretches of river in the eastern U.S., 13 miles of the Little Tennessee River, essentially unpolluted, uncontaminated and undeveloped.

“It is really incredible,” Cantrell said.

Which means there will be a whole lot of eyes watching as Duke develops a sedimentation management plan.

Dorney said in his view, it isn’t good for every grain of sediment in the river to get blocked by the dam.

“There is some concern about the river being sediment starved downstream from the dams,” Dorney said.

That may mean flushing some sediment downstream periodically.

“If they release some, that would get it out of the lake of course, but if you release too much it would destroy downstream, so it is a balancing act,” Dorney said.

There is only one caveat that would tip the scale against sediment removal, and one that just might come into play in Lake Emory.

Industrial pollution downstream from Lake Emory could have accumulated in the sediment over the years, and stirring it up could be bad news, according to water quality advocates with the Little Tennessee Watershed Association. (see related article.)

Dorney said that is definitely an area that needs more research, but doubts it would be a deal killer.

“If they did the studies and determined there would be more damage to the environment by removing it than leaving it there,” Dorney said. “But that isn’t likely.”

More often, the contaminants would be leaching out anyway, so removing them is still the best option.

Cantrell said toxic muck is “a legitimate concern.” He said there are detailed studies under way by Western Carolina University to try and pinpoint why there’s been a mussel-population decline below Lake Emory.

Cantrell said there are measurements that are indicating excessive levels of copper and other metals in Lake Emory, “and we are concerned about that being transmitted downstream.”

By Becky Johnson and Quintin Ellison

Lake Emory headed toward oblivion one grain at a time

There’s a story, perhaps apocryphal, about how a bunch of drunks overturned their boat one night in Lake Emory just outside of Franklin.

Macon County’s emergency services and law enforcement turned out en masse. They arrived to discover the drunks bobbing about holding onto the sides of their boat, desperately awaiting rescue. The cops studied the situation for a moment; then cupped their hands around their mouths and hollered out: “Put down your feet.” The drunks did as bidden, and walked unaided to the shore across silt-filled Lake Emory.

That’s an amusing tale — unless your home happens to be situated next to the 174-acre lake, as is the case for Shirley Ches and her husband, Jim.

The couple moved to their lakefront home in Franklin about 20 years ago. They were excited about living in the mountains and alongside water in an area they both loved. While they remain enamored with the beauty of these mountains and the region they call home, these days the couple has soured on the whole lakefront experience.

Shirley Ches, in particular, is frustrated by the silt and downed trees in Lake Emory. She is irritated by years of promises made by county and town leaders that something will be done, only for nothing to ever actually happen. Ches is tired of studies in Macon County that don’t lead to action; of talk that hasn’t led to results.

The silt buildup, Ches said during a guided walking tour along the lake of the couple’s slice of paradise, is the end result of storm damage that started with the blizzard of 1993 and continued with numerous tropical storms in the years that followed.

Before and after pictures tell the story visually. Back at the house, Ches has spread out photo albums on the dining room table for her version of show-and-tell. There are photos of Jim fishing, and of her grandchildren playing in the lake, pictorial reminders of all-around-fun-times in the mountains that people who retire to Western North Carolina dream about when they are living in hot and sandy Florida.

Then came those storms. Silt from development upstream, from the former town dump on Radio Hill nearby, from virtually everywhere that can be conceived, poured down into Lake Emory, Ches said.

SEE ALSO: To Duke’s chagrin, dredging may be in the cards for Emory

The lake is positioned a short distance below the convergence into the Little Tennessee River of the Cullasaja River, Cartoogechaye Creek and smaller tributaries.

Trees, too, were knocked down in these storms. The trees washed into the lake, helping to fill it with more debris and provide still more crevices for silt to build up against.

Ches’ photographs of her grandchildren playing in Lake Emory transition to ones featuring her son. He’s wading in mud, acres and acres of mud, with a chainsaw in hand, cutting trees downed by the storms. Sisyphus-like, really, in his efforts to help his parents reclaim their dream — one man cannot cleanup a lake, however, no matter how determined he might be.

The lake, it seems, is headed for a future as a shallow wetland at best, mudflat at worst, if years of accumulated sediment aren’t dredged by Duke Energy, which owns the lake and dam as part of its hydropower network.

 

A developer’s dream

Lake Emory doesn’t just represent an implosion of the dream Shirley and Jim Ches once had of the merry life they’d lead once residing on its shores. Lake Emory is one of the first of the many boom-and-bust housing developments that today litter WNC and scar the region’s mountains — dollar signs turned to dust, a ghost lake of sorts.

That said, Lake Emory does have its own beauty, sort of. There is something primordial about this shallow lake — the silt has formed into islands here and there. It’s sort of like watching the earth form. There are large expanses of wetlands, too. Birds, insects and wildlife use the lake, and locals do catch fish here, though it’s not exactly a Fontana Lake-experience. There are not going to be any national bass-fishing competitions anytime soon on Lake Emory, as any large bassboats launched in Lake Emory might run aground.

Like Fontana, and most of the lakes that dot WNC, Lake Emory is manmade.

In the 1920s, a group of residents formed the Lake Emory Company and started pushing for a lake in Macon County near Franklin. They wanted it for fishing, swimming and boating. They also wanted a power dam to generate electricity for the local community, plus a golf course and a 75-room motel to attract tourists, according to a history of the project compiled by Jamie Johnston, the former executive director of the Little Tennessee Watershed Association, a locally based conservation group.

The lake, the group decided, would be stocked with a variety of game fish for sportsmen, and hunters could come and shoot the many ducks that surely would use the lake for nesting and resting on their migration routes to other place.

The lake was expected to attract thousands of visitors. Estimates of projected income varied from $750,000 to $1 million annually, according to news accounts at the time.

Lured by these promises, the Town of Franklin in 1925 created Lake Emory by funding a $300,000 bond to pay for a 35.5-foot tall, 463-feet long dam on the Little Tennessee River.

The town owned the dam; Lake Emory Company was left to market and develop the surrounding property. That part of the project never really got off the ground, however. There would be no motel, and no golf course — just a small hydroelectric dam that sucked up Franklin taxpayer dollars at an alarming rate.

The town eventually offloaded the dam to Northwest Carolina Utilities, only to see ownership return when the company failed to make a bond payment in the early 1930s.

In 1932, the town transferred title to Nantahala Power and Light Company, which later morphed into Duke Energy. Today, the two hydro generators at Porter Bend Dam on Lake Emory produce just more than one megawatt. This, according to Duke District Manager Fred Alexander, represents a mere 1 percent of the generating capacity of Duke hydroelectric projects in its Nantahala Area of southwestern North Carolina.

 

Reasons not to dredge

A hop, skip and a jump away in Haywood County, a similar situation developed over the years at Lake Junaluska: silt filled the manmade lake there, too. But unlike at Lake Emory, the question in Haywood County wasn’t whether to dredge, just about how to actually pay for dredging. Once that was solved, dredging promptly took place, and the lake was again a showpiece for those living along its shores. Dredging is now done on a routine schedule every few years.

That, however, isn’t the case in Macon County. Lake Emory, unlike Lake Junaluska, isn’t home to a group of well-heeled Methodists with united will and enough money to get the job done. Lake Emory is a place where everyday people such as Shirley and Jim Ches live in small, modest homes; outsiders, for the most part, without much political clout.

Last month, if there wasn’t already enough to hinder anything being done (and at least two of the town’s aldermen were then pushing for dredging), one of the region’s most respected environmentalists weighed in with his reasons not to dredge Lake Emory.

Macon County resident Bill McLarney, who oversees biomonitoring work for the Little Tennessee Watershed Association, strongly cautioned against digging into the muck that makes up Lake Emory. McLarney, during a noontime luncheon and unveiling of the group’s State of the Streams report at a League of Women Voters’ meeting, said he worried dredging Lake Emory would risk stirring up monsters of the deep — toxic pollutants that could be buried deep in the silt.

There were great amounts of questionable materials being discharged into Lake Emory in the 1960s from plants in neighboring Rabun County, Ga., McLarney said, in those years before federal regulations came into play to prevent toxic spewing.

Churn that stuff up, and you risk the overall health of the 13-mile stretch of the Little Tennessee River below Porter Bend Dam, he said.

“I really hadn’t thought about that before,” Franklin Alderman Bob Scott, formerly a proponent of dredging Lake Emory who was pushing Duke to get off its duff and do just that, said after hearing McLarney.

Scott left convinced a lot more study needs to take place before any silt gets disturbed, if it ever does.

Ches, too, was at that meeting. An avid Democrat, a frequent letter writer to local newspapers on a variety of left-leaning issues, she is frustrated by the reactions of what would normally constitute her natural allies — a liberal such as Scott, an environmentalist such as McLarney. Even the local sportsmen haven’t readily embraced her dream of a lake where they could more easily hunt and fish and play.

Who really can say that dredging wouldn’t actually help the Little Tennessee River? Ches argued. And, she added, while she cares, too, about those little creatures in the river just like McLarney does, she and her neighbors are the ones who have to actually live next to the lake.

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