Chimney Rock Plans Growth as Recovery Continues

Nearly two years after Hurricane Helene devastated Chimney Rock Village, local officials are shifting their focus from immediate recovery to a larger question: What will the community look like when rebuilding is complete?

That question was at the center of an economic impact presentation during the Chimney Rock Village Town Council’s Aug. 18 meeting.

Helene struck Western North Carolina on Sept. 27, 2024, causing catastrophic flooding along the Rocky Broad River and extensive damage to roads, utilities, businesses and homes. Chimney Rock has since reopened to visitors, and businesses are operating, but major infrastructure and recovery projects remain unfinished.

Consultants told town officials that recovery-related construction could generate an estimated $482 million in total economic impact over the life of the projects.

The figure represents direct, indirect and induced economic activity associated with construction spending — not in annual revenue for the village.

Tourism Could Grow

The presentation also examined what could happen using the Raise the Rock plan for tourism after the remaining recovery work is completed.

Consultants projected that visitation could increase by 10% to 50%, potentially producing an estimated $41 million to $63 million in annual economic impact from additional visitors.

Officials emphasized that the increase is not guaranteed.

The village would need continued marketing, additional lodging, more businesses and sufficient parking and infrastructure to accommodate higher visitation.

Overnight visitors could be particularly valuable to the local economy.

River Recreation Eyed as Opportunity

Consultants identified river restoration and outdoor recreation as potentially significant economic drivers.

Rafting, tubing and other river-based activities could give visitors more reasons to spend time in Chimney Rock and potentially encourage longer stays.

The goal would be to turn the river and surrounding outdoor recreation into long-term economic assets rather than simply restore conditions that existed before Helene.

Parking May Become a Challenge

Growth could also create infrastructure pressures.

Consultants offered a preliminary estimate that the village could eventually need 400 to 600 additional parking spaces, while stressing that the number was not the result of a formal parking study.

Council members discussed alternatives to constructing all of the parking within the village, including shuttle services and partnerships with surrounding communities.

They also asked consultants to provide projections for visitor numbers, lodging demand and parking needs looking five and ten years into the future.

Millions in Funding Pending

Village officials reported approximately $42 million in pending grants connected to recovery efforts.

The figure represents applications and pending funding, not money already received.

Officials said the village has received approximately $15 million, excluding FEMA funding.

Projects discussed during the meeting included about $10.6 million for an environmental grant, $5.5 million for streetscape work and $1.7 million for a carbon-reduction streetscape grant.

The economic impact analysis could help the village demonstrate the broader economic benefits of those projects when seeking outside funding.

NCDOT Work Continues

Transportation remains another major part of the recovery timeline.

North Carolina Department of Transportation projects in the area are expected to continue into 2029, meaning access and transportation infrastructure will remain an issue for the tourism-dependent community for years to come.

The village is therefore planning for future growth while portions of the recovery are still in progress.

Some projects have not yet reached the contractor-bidding stage.

Water and Sewer Revenues Have Fallen

The storm also changed the village's financial picture.

Village Administrator Steve Duncan said annual water and sewer revenue declined from more than $110,000 to approximately $59,000 to $60,000.

“We lost probably half to two-thirds of all of our customer base,” Duncan said.

Officials reported approximately $1.9 million in retained water and sewer funds at the end of the fiscal year, with another $2.851 million expected in reimbursements.

Those funds are expected to help repay a no-interest revolving loan associated with downtown water and sewer restoration.

Recovery and growth happening at the same time

The Aug. 18 discussion highlighted the unusual position Chimney Rock finds itself in nearly two years after Helene.

The village is open. Businesses are operating. Visitors are returning.

At the same time, significant rebuilding remains ahead.

Officials are now considering what additional lodging, parking, transportation and infrastructure may be needed if tourism grows after the recovery is complete.

The consultants' $482 million estimate represents the potential economic activity associated with recovery and planned construction. The projected tourism gains are more uncertain and would depend on continued investment and planning.

For Chimney Rock, the recovery is entering a new phase — one in which officials are not only rebuilding what Helene destroyed, but deciding what the village should become when that rebuilding is finished.

The presentation included consultants from Destination by Design, Jon Stover & Associates and McGill Associates, along with town officials and community representatives.

During the meeting, a quorum was temporarily lost because of a fire call.