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.

The great outdoors: New Franklin outfitter store proves a big hit with enthusiasts

With the explosion of outdoor sports over the past few decades in Western North Carolina, perhaps it shouldn’t come as that big a surprise another outfitting store has opened in the region.

But this one is different, in at least two ways: The guys running Outdoor 76 truly use the equipment and clothes they sell; and the gear-oriented store is located in downtown Franklin, a place known more for its older, retired population than its hit-the-woods types.

But things have been changing in Macon County, too. Franklin has bonded during the past few years with hikers on the nearby Appalachian Trail, even to the point of hosting a festival for them each year and winning an official “trail town” designation. And plenty of people here and in the neighboring communities — young, middle-aged and older — seem increasingly eager to experience the outdoor life.

That helps explain why Outdoor 76, co-owned by Rob Gasbarro and Cory McCall, has gone gangbusters since the store opened on Main Street 10 months ago.

“It’s really overwhelming, though in a good way,” said Gasbarro of the explosion in growth the outfitters are experiencing.

Outdoor 76 carries name brands such as Mountain Hardwear, Marmot, Patagonia, Scarpa, Vasque, Keen, Western Mountaineering, Salomon, MSR and more. Additionally, the two men offer guided hikes and trips, plus carry an impressive array of camping, hiking and paddling equipment. They also rent equipment.

“It’s owned and operated by enthusiasts,” Gasbarro said. “We do this because we love to do it.”

And as if opening a new store wasn’t enough, both Gasbarro’s and McCall’s wives are expecting babies. Each will have their first children, seven weeks apart, in December and February, respectively.

In the meantime, they are putting together an outdoor festival to take place Oct. 8-9 in Macon County, featuring an outdoor triathlon, 5K race, a frisbee-team tournament, disc-golf competitions, plus clinics on flyfishing, paddle sports and more.

 

How it came about

Gasbarro’s and McCall’s business partnership came about in an unusual fashion: they became buddies through church. Gasbarro, 35, had moved to Western North Carolina from Tampa, Fla., for a job with an engineering company. McCall, 29, a Franklin native, was working in real estate.

When the economic doldrums hit, Gasbarro’s job felt “iffy,” and real estate sales went into the toilet. The two fellows knew they needed to find other ways to make livings.

“If we’re going to struggle, we decided we might as well struggle for ourselves instead of someone else,” Gasbarro said.

And the idea for an outfitter store, jointly owned by these two outdoor enthusiasts, seemed a natural. Gasbarro had an extensive paddling background, and McCall, a longtime runner, had played around in a lot of outdoor sports.

Though many people just didn’t initially get why they’d want to chance on opening one in downtown Franklin. But the two men did their homework: Franklin’s Main Street, Gasbarro said, has the highest traffic count of any municipality west of Asheville.

Then Gasbarro pulled out maps of the region from beneath the store counter — look, he explained excitedly, Franklin is the hub of virtually every outdoor experience one can enjoy in WNC. Kayaking, rock climbing, hiking, trail running — you name it, and you can experience it within a short drive of Franklin. And if that weren’t enough, the major highways essentially all flow through, or connect into, Macon County — U.S. 441 and U.S. 64 principally.

“We’re better positioned to tap the metropolitan areas than anyone else,” he said of Franklin. “Location, location, location.”

McCall, too, felt comfortable about opening the store in his hometown.

“Franklin needed this,” he said between helping a customer decide on what shoes were needed. “Franklin needed an avenue to fulfill the needs of people who are outdoor enthusiasts.”

Other outdoor shops carrying gear, clothing and supplies in the region include Mast General Store in Waynesville, Blackrock in Sylva and Three Eagles in Franklin.

But the closest shop to Outdoor 76, as an outfitter that also offers guided tours and rentals, is the Nantahala Outdoor Center, but that’s far enough away not to pose problems. In fact, Outdoor 76 has a great relationship with NOC, Gasbarro said.

Twenty years and counting: Tracking the health of the Little Tennessee

For two decades, the Little Tennessee Watershed Association in Franklin has been monitoring the health of the river’s water basin from north Georgia to Fontana Lake.

Last week, the group released a State of the Streams report, showcasing both its work and what has been found over the years, particularly the trends from 2002 through 2010. The unveiling took place at a noon luncheon of the Macon County League of Women Voters in Franklin, with about 30 people in attendance.

Overall in the upper Little Tennessee River watershed, two worrisome points stand out, according to the report. Monitoring of threatened and endangered species in the mainstream below Franklin suggests that the decline of native mussels is long term and not just cyclical; and a fish species, the Wounded Darter, has almost completely disappeared from the Cullasaja River.

The good news? The most significant development was the closing in 2006 of the Fruit of the Loom plant in Rabun Gap, Ga., which the group said accounted for more than 95 percent of the total permitted industrial discharges to the entire watershed.

While the closing was hard on those whose livelihoods were dependent on the plant (30 percent of the workforce was from Macon County), benefits were almost immediately visible in the downstream ecosystem. This included the recovery of riverweed, an aquatic plant of the Little Tennessee.

Additionally, in Highlands, macroinvertebrates from Mill Creek are showing slow but continual recovery following the late 1990s shutdown of the Highlands sewer plant.

The condition of the river in the now-protected Needmore area (since 1999) also suggests that positive actions have, at the very least, “counterbalanced” negative trends. The Needmore tract, purchased from Duke Energy to protect it from development through a combination of private and public funding, has been under management by the N.C. Wildlife Resources Commission since 2002.

“Thirteen miles of free-flowing river, no houses or bridges — that’s a pretty unique thing in this part of the world. It’s a really exceptional piece of river,” Bill McLarney, an aquatic biologist who has studied the Little Tennessee River and its tributaries for at least two decades, said of the Needmore stretch of the Little Tennessee River.

Additionally, “we are relatively blessed that we don’t have a lot of point-source pollution,” McLarney said. “Habitat modification and sedimentation is the biggest problem here … that’s what we need to focus the most attention on if we want to see healthier streams.”

Jason Meador, the watershed program coordinator for the Little Tennessee Watershed Association, said the group focuses on a “holistic approach.” The staff and the many volunteers involved don’t just study fish, they also look at and study everything involved in a healthy watershed.

That’s also involved restoration projects, such as taking out culverts and replacing them with bridges, such as the group did on Bradley Creek. The culverts — essentially places where a stream is forced into a giant pipe to pass under a road — often block fish from being able to travel freely up and down tributaries, particularly if the culvert is crumbling, Meador said.

Additionally, the culverts often can’t handle big storm flows, flushing excess sediment.

 

Where is the Little Tennessee watershed?

The upper Little Tennessee watershed covers 450 square miles of forests, fields, towns and communities in the heart of the Southern Appalachians.

With headwaters in Rabun County, Georgia at the confluence of Billy and Keener creeks, the Little Tennessee River flows north and northwest for 55 miles, unimpeded for its entire length except for Porters Bend Dam, which forms the relatively tiny (250 acre) Lake Emory in the town of Franklin. Before reaching Lake Emory, the river makes its way through a flat, wide valley, dropping less than 50 feet of elevation in more than 10 miles of channel length. Here, the valley is defined by the Nantahala mountains to the west and the Fishhawk mountains and Blue Ridge escarpment to the east.

The stretch of the river between Lake Emory and Fontana Lake is one of the highest quality rivers in the Southern Appalachians, making it unique among the Blue Ridge rivers to have escaped much of the industrial pollution that has degraded so many other rivers in the region, according to the Little Tennessee Watershed Association.

Better late than never, Franklin jumps on board the motorcycle tourist scene

Franklin, long a popular byway for motorcyclists heading to Highlands, or via N.C. 28 to the Tail of the Dragon at Deals Gap in Graham County, wants to capture some of those pass-through dollars.

Next year in August, Franklin’s Tourism Development Authority will host a three-day motorcycle rally. It will take place along U.S. 441 north in a field usually reserved for one of the many gem and mineral shows Macon County is renowned for.

“I think it would be great,” said Doug Hastings, the owner of the Moka Latte Express on Highlands Road just outside of Franklin. “This is ideal motorcycle country. Anytime we can bring revenue into the area that is clean — and most bikers are clean — it’s good.”

Franklin joins a long list of towns trying to court the motorcycle dollar. Maggie Valley is already well-established as a biker-friendly town, with numerous motorcycle festivals every year and a renowned motorcycle museum. Cherokee has been successfully tapping the motorcycle market for years as well, along with the string of communities in closer proximity to the infamous Tail of the Dragon and Hellbender routes, each with dozens of twisty curves per mile.

Mike Grubermann, Franklin town planner who serves as a liaison to the TDA, said a topnotch, reputable promoter with considerable experience in organizing similar shows in Georgia has been hired. Plans call for the event initially to be financially subsidized by the tourism group, but to ultimately become self-sustaining.

Grubermann said a motorcycle rally fits well into Macon County’s push to capture more tourism-related dollars.

“The nature and background of motorcyclists have changed over the years — this is not a Hell’s Angels event,” he said.

Grubermann said most tourism-drawing events in Macon County attract about 3,000 people, and that the motorcycle rally is expected to start with 1,000 to 2,000 motorcyclists and build up to the 3,000 number.

“We have some wonderful motorcyclists come through,” said Patti Koch, who owns Peppermint Patti’s Ice Cream & Sweets with her husband, Eric, and supports the concept of a motorcycle rally in Franklin. “They’re all stopping in on their way to the Tail of the Dragon. This year, I’ve seen whole convoys of them.”

Not everybody is enthralled with the idea of bringing in motorcyclists for a rally, however. Alderman Bob Scott said the TDA needs to do more research on holding such a rally, including finding out how such events have gone in other towns. “How does this fit into Franklin’s reputation of being family friendly? I have serious reservations about this expenditure of tax funds.”

Minutes of the TDA meeting show that $14,800 was approved for marketing and promoting the event.

MANNA FoodBank to close Franklin distribution center

MANNA FoodBank will close its Franklin distribution center by October, putting three part-time employees out of work as the agency moves to streamline its system and cut overall operating costs.

Cindy Threlkeld, executive director of the Asheville-based nonprofit, blamed rising food and fuel costs and potential threats to federal funds the agency relies on. MANNA’s distribution center in Franklin served as a clearinghouse and pass-through point for food supplies bound for “partnering agencies” in the western counties for 20 years.

Franklin headquarters the only branch office of MANNA, located on Depot Street.

The nonprofit had to make hard decisions about how to maintain the same level of service while cutting costs, Threlkeld said.

“We are fully committed to providing the same level of service, or even more,” she said. Online ordering was already used by most of the 250 agencies that tap MANNA’s food stores across a 16-county service area.

MANNA FoodBank Board Member Amy Grimes, executive director of The Community Table in Sylva, said the online system works well. She said the agencies that haven’t made the transition yet seem to understand the difficulties faced by MANNA, “and people seem OK with it. Everyone is having to make hard choices right now.”

But MANNA will still need a pick-up point, a centralized location somewhere in the western counties where pallets of food can passed off to agencies. Threlkeld is currently hunting for such a site. It will not be a formal distribution center, however, such as the one in Franklin. The phase-out of the Franklin center will start in September, Threlkeld said.

On a more positive note, MANNA’s executive director said a couple in Henderson County has donated the entire production from a 5-acre orchard, contingent on MANNA handling the harvesting. Threlkeld said she foresees the agency ending up with some 150,000 pounds of apples, raising possibilities MANNA could trade apples with another food agency for other supplies.

Franklin features mountain culture July 16

The Franklin Folk Festival will celebrate its 8th year on July 16, continuing the tradition of craft, song, dance and cuisine in the heart of Franklin.

This year’s theme, “Trails, Tales and Settlements” promises more entertaining and educational information than ever about the history of Franklin and surrounding areas. Spotlighted in the tales section will be popular storytellers who will, throughout the day, be telling stories of the mountains that will intrigue both children and adults. On the front porch will be some of the region’s oldest residents sharing stories about their lives growing up here in the mountains.

The Trails Through Time segment will spotlight antiques and many of the items used by early mountain residents at different periods in their lives. Indian Trails and Cherokee Heritage Trails will educate visitors about the Indian names given to various sections of the county. Other trails that will be explored during the festival are Quilt Trails, Hunting Trails, Hiking Trails, Old Railroad Beds, Civil War Trails, Family Genealogy Trails, Logging Trails, Communication Trails and Wagon Trails.

Tied closely to trails is the Settlements portion of the festival, where historians and representatives from various communities will talk about how particular areas got their names, who their early settlers were and how these communities have changed over the years.  Old photographs and displays will help bring these early settlements alive.

Since 2011 begins the commemoration of the 150th anniversary of the Civil War, the 25th Infantry Civil War Re-enactors will be on hand to show how this conflict affected the lives of ancestors who lived through it. The re-enactors will be camped throughout the weekend in Frogtown, the site of Franklin’s old drive-in theatre, and camp tours will be offered throughout the day on Saturday. As during past Franklin Folk Festivals, a skirmish which has become known as the Battle of Frogtown — complete with a cannon and other artillery — will take place, and throughout the day, infantry drilling and firing demonstrations will take place.

Elsewhere at the festival will be craftspeople displaying heritage skills, musicians playing and singing mountain songs, square dancers willing to dance for and teach spectators, vendors supplying delicious food and games and contests for all ages.

In addition to exhibits and demonstrations, the festival will host an Antique Car Show, Civil War re-enactments, games and contests for children and adults, and the always popular Heritage Parade.

As in past years, several music venues downtown will feature old time mountain music: Gazebo Main Stage, Church in the Wildwood, featuring gospel music inside First Baptist Church-Chapel, the Jammin’ Tent in front of Town Hall, open to all jamming enthusiasts, as well as other exhibits that include music.

All of this helps the Folk Heritage Association continue to provide living history experiences and to preserve the folk heritage of Macon County for generations to come. Activities and exhibits will be focused in the downtown area in addition to special exhibits at the Community Facilities Building and grounds on US441 south.

For more information call 828.369.7411 or visit www.mcncfha.org.

Everyone up for election in Franklin pledges to run again

When Sam Greenwood retired as Macon County’s manager and almost immediately accepted the same position for the town of Franklin in March of 2008, he made sure everyone clearly understood that his time there was limited.

Greenwood wanted to help Franklin make a seamless transition from a mayor-council form of government to a council-manager style. This task now completed, Greenwood is set to retire from public service for a second time.

That means November’s upcoming election in Franklin — where the mayor and four of the six aldermen are up — is particularly critical to the long-term future and wellbeing of the town, the incumbent aldermen and mayor said in a series of interviews last week. To a person, they agreed the key issue for the next board would be finding the right person to replace Greenwood as town manager. Greenwood isn’t the only turn-over the town will see. Terry Bradley, Franklin’s longtime police chief, also is going to retire this year. And several more of the town’s top employees have enough years in that they could opt to leave, too.

“There’s a lot of people who are department heads who are eligible for retirement,” Alderman Bob Scott said.

Mayor Joe Collins, who said he is “strongly considering” running again, has been mayor for four two-year terms, and before that, was an alderman.

Scott said rather than run for another four years, he would instead run for the seat formerly held by Jerry Evans, who passed away this year. Evans’ seat only has two years left on it, rather than a full four-year term.

“Jerry and I were pretty good friends, and I’d like to serve out his remaining time,” Scott said. Scott is finishing out the end of two terms, and he started his tenure of public service as an advocate of term limits — there are some projects Scott said he’d like to see through, however.

Alderman Farrell Jamison, appointed to fill the seat after Evans died in February, said he’d run, too, to keep on serving out Evans’ unexpired term. Jamison wants to focus on economic development issues, bringing more businesses into Franklin, and to help with general revitalization in downtown.

Alderwoman Joyce Handley said she probably plans to run again, although she acknowledged she’s technically supposed to be “sitting on the fence” and weighing that decision because her husband has suggested enough, perhaps, is enough.

Greenwood, Handley said, “has done a marvelous job,” but now a replacement must be found, and it needs to be the right person for the job. She wants to help pick that person.

Alderman Verlin Curtis, who has served two four-year terms, does, too. Curtis said another issue in Franklin is the changes a flood insurance program could bring to some property owners, particularly in the Crawford Branch area. What’s at stake is whether Franklin participates in the National Flood Insurance Program, which could mandate certain property development restrictions in the 100-year floodplain.

First encephalitis case of the season reported in Franklin

Public health officials have reported that a child in Macon County has contracted LaCrosse Viral Encephalitis, a potentially serious illness carried and transmitted by mosquitoes.

While other mosquito-borne diseases such as West Nile Virus are found across the state, LaCrosse is largely confined to Western North Carolina. The disease is rarely fatal, but a Transylvania County girl died as a result of infection in 2001. And in 2009, a child in Cherokee died, adding new emphasis to health officials’ efforts to warn people about the potential dangers of LaCrosse.

There were 13 confirmed and potential cases identified in WNC in 2010.

Cherokee, in particular the Big Cove community, and Black Mountain — for unknown reasons — are recognized in the medical community as hotspots for the illness, said Dr. Penny O’Neill, a pediatrician with Sylva Pediatric Associates. But, as the case in Macon County shows, the dangers exist anywhere in the region.

The big month for outbreaks is usually August, but with one in WNC already identified, “we’ll go from now until the first killing frost” with outbreaks of LaCrosse, O’Neill said.

Stan Polanski, physician’s assistant for Macon County Public Health, said the child with LaCrosse is recovering. The last diagnosed case in Macon County was more than five years ago, he said.

Regionally, about 20 cases are reported each year.

“For every case we confirm, there are probably 20 to 50 unrecognized cases,” Polanski said.

In Cherokee, public health officials have crafted a two-part response to the problem.

On one side, they’ve long been educating parents, kids and the community at large on how to prevent mosquito’s and eliminate standing water that serves as breeding grounds.

“We’ve done mitigation in the community with everything from actually going out and doing community assessments to emptying stale water containers,” said Vickie Bradley, deputy health officer for the Eastern Band of Cherokee Indians.

Last year, the tribe also started a program in concert with Cherokee Indian Hospital to support families that are struggling with the long-road to recovery from an encephalitis infection. Dr. Anna Eastman, a consultant from the United Kingdom where there is an established post-infection support program, has come to Cherokee to train tribal health workers.

The danger posed by encephalitis is greatest for babies, O’Neill said, because they can have potentially devastating neurological issues. The intensity of the illnesses seem to vary from year to year, she said, but emphasized there is one important step people can take: Use DEET.

O’Neill said parents often express concerns about the mosquito repellent, but “the danger from DEET is potential — the danger from encephalitis is real.”

The object, the pediatrician said, is to eliminate mosquito bites, not just reduce the number received.

By Quintin Ellison and Colby Dunn • Staff writers

 

LaCrosse Viral Encephalitis

Symptoms occur from a few days to a couple of weeks after being bitten by an infected mosquito. These symptoms include fever, headache, nausea and vomiting. In more severe cases, convulsions, tremors and coma can occur. Children under 16 years of age and the elderly are the most susceptible to the disease.

To reduce mosquito breeding areas:

• Remove any containers that can hold water.

• Keep gutters clean and in good repair.

• Repair leaky outdoor faucets and change the water in birdbaths and pet bowls at least twice a week.

• Use screened windows and doors and make sure screens fit tightly and are not torn.

• Keep tight-fitting screens or lids on rain barrels.

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