Exclusive: Chimney Rock leaders highlight $20M recovery efforts

Recovery in Chimney Rock is shifting from cleanup to construction, and town leaders say the pace will quicken in 2026. During its December meeting, the Chimney Rock Village Town Council laid out a coordinated roadmap that includes imminent highway work, a proposed business hub near the post office, bridge replacements tied to water and sewer reliability, and a stack of federal, state and philanthropic grants already awarded or in active application.

The most immediate change residents and visitors will see is on the main highway through the village. Officials said the North Carolina Department of Transportation plans to begin raising sections of roadway early in the new year, starting with roughly 1,300 feet. Rather than closing the road, NCDOT intends to use flaggers and traffic control while work proceeds. A second phase will armor the roadway, and the village is pushing for treatments that balance durability with aesthetics in the scenic gorge.

Council also took a formal step toward redevelopment on the east end of the village. Members selected the Stitch–McGill team to provide architectural and engineering services for an infill project below the post office, a decision that positions the town to pursue federal economic development funding. That work feeds directly into a proposed Chimney Rock Village Business Hub—an anchor project council hopes will support small businesses and long-term vitality.

To move that project forward, council approved a resolution authorizing an application to the Economic Development Administration. The proposal targets up to $10 million and requires a 20% local match and long-term public ownership. Village leaders said the match hurdle is already addressed through a $2 million commitment from Dogwood, allowing the application to be submitted by late January.

Infrastructure reliability—especially water and sewer—ran through much of the discussion. The village has a $2.4 million application pending to replace two bridges to DOT standards so utilities can be carried across the river, restoring access to a well and improving redundancy. In parallel, a $100,000 grant from the North Carolina Department of Environmental Quality funds a facilitated study by the UNC School of Government to explore regionalization of utilities across the Hickory Nut Gorge. Surveys and follow-up meetings are planned as part of that effort.

DEQ-related awards also include a $10.5 million package for water and sewer needs, covering a new well, repairs and mitigation, and—only if necessary—a small package treatment plant as a last resort to maintain service. Officials emphasized that planning is underway to avoid extraordinary costs and preserve autonomy while ensuring reliability.

Environmental restoration remains a priority. Engineers have submitted emergency watershed and slope-stabilization projects through USDA programs, with site visits and reports expected early in the year. Those projects would address riverbanks and slopes damaged in the storm, complementing longer-term river restoration and riverwalk concepts identified in the village’s master plan.

Support for local businesses is expanding as well. A newly formed, village-focused nonprofit, Chimney Rock Economic Development and Investment Team (CREDIT), announced it secured a $25,000 grant from Duke Energy and matched it with local funds, creating $50,000 for small-business improvements within town limits. Applications are due by the end of January, with funds to be distributed soon after.

Financially, the village reported stable general and enterprise funds as reimbursements have come in. Most water and sewer rebuild invoices are complete, with one remaining payment pending portal approval. Council also extended its audit contract to meet new “single audit” requirements tied to disaster funding, noting ongoing coordination with the Federal Emergency Management Agency on remaining projects.

Looking ahead, January is expected to bring the submission of the EDA business hub application and the start of highway construction. Spring will focus on engineering for streetscape improvements, additional grant applications tied to river work, and continued interagency coordination. If timelines hold, 2026 will be the year Chimney Rock moves decisively from recovery into rebuilding—while keeping traffic moving, utilities functioning, and businesses supported along the way.

Read the meeting agenda and grant application for local business owners here.