Exclusive: Chimney Rock Planning Board Expands Short-Term Rentals, Advances Recovery Efforts, and Backs Variance

Board members approved two new short-term rental permits for properties on Terrace Drive and Hickory Trail. Both applicants met requirements for septic systems, water access, adequate parking, and registration with Rutherford County to collect occupancy taxes.

“With these approvals, the total number of permitted short-term rentals in the village now stands at 20,” staff confirmed.

The decision reflects the return of vacation lodging as utilities and roads stabilize after the flood. The board had suspended short-term rental approvals last fall when storm damage cut off access to homes and rentals. The program resumed in late June, just in time for the Fourth of July holiday.

“We even gave a waiver of their application fees for the entire month of July,” town administrator Steve Duncan said. “But on August 1 it went from $100 to $300.”

Board members reminded residents to report unregistered vacation rentals so the village can ensure compliance. “We’re not going to be mean or aggressive,” Duncan said. “We’ll work with them to try to get them in compliance … it’s a safety measure, and it protects both neighbors and guests.”

Setback variance for Bubba O’Leary’s

The most closely watched decision of the meeting involved Mayor Peter O’Leary’s business, Bubba O’Leary’s General Store, which was damaged in the flood. O’Leary requested a setback variance to rebuild the store flush with his adjoining business, Bubba O’Leary’s Outfitters.

Planning Board members said the adjustment was small but significant.

“I met with Peter out there. We looked at it. He’s talked to his contractors, and from an architectural viewpoint, he would like to request a variance of the one foot nine inches,” Duncan said. “That will make the new building be completely flush with his existing building … and that leaves plenty of room for any potential parking. It allows a cleaner flow of pedestrians and keeps a very attractive layout.”

Board members stressed the variance preserves the long-standing commercial use of the property. “I think it would be adverse to the property if we didn’t consider the variance,” Duncan said, noting the site’s limited depth due to the Broad River.

Mayor O’Leary assured the board the new building would resemble the old one as closely as possible. “It’s gonna look like the building that used to be there,” he said. “It’ll be very similar to that building … basically the same.”

The Planning Board recommended approval of the variance. The Village Council approved it later at their meeting on the same day, with O'Leary recusing himself. 

Raise the Rock Action Plan

Recovery planning dominated much of the meeting. Officials outlined progress on the Raise the Rock Action Plan, the blueprint for long-term rebuilding.

Funding remains central to the effort. The village has secured $5.5 million in small business recovery grants from the N.C. Department of Commerce, but the release of those funds depends on completing preliminary engineering reports for six downtown projects. McGill Associates has been hired to prepare the reports.

“They’re charging $2,500 for each of the six preliminary engineering boards,” Eric Woolridge, Director of Planning and Business Development of Destination by Design said. DbD is a Rutherford County Tourism Development Authority contractor who has been leading the Raise the Rock plan. “Once we submit all of that, you’ll probably get six really fat packets of documents … then you execute those contracts, and we hire McGill to do the full engineering. At that point, we’ll release it to contractors.”

The timeline could put projects out for bid by next fall. “Spring would be better than this time of year,” Duncan said, underscoring the need to avoid disruptions during peak tourism season.

Additional funding sources are in play. The Dogwood Health Trust has received an application, and the Appalachian Regional Commission could provide “quite a few million dollars” for river-related projects. Henderson County is coordinating with Chimney Rock to strengthen cross-county applications.

A semi-permanent Raise the Rock sign will be installed at Chimney Rock State Park later this month to promote the plan and encourage donations. It will feature QR codes linking to the Raise the Rock website.

Trails and tourism

The meeting also highlighted Rutherford County’s role in statewide trail initiatives. October has been designated “Great Trails Month,” with a special “Great Trails State Day” set for Oct. 18. In commemoration of Hurricane Helene, there is a slew of events planned, including a “View of Resilience Hike” in Chimney Rock on Sept. 27.

Board members said trail development not only improves the quality of life for residents but also positions the county for future funding. 

Zoning discussions

The board also revisited zoning issues for a six-acre tract near the village. The land had previously been rezoned for camping and commercial use, but deadlines for development expired. The owner is exploring new options, which may require a shift to tourist business zoning.

Board members were cautious. “I don’t want us to change the zoning predicated on what’s going to be built,” one said. “I want us to change it because it is the best use of the property for the village.”

Another member pointed out that the board had already granted zoning changes in 2023. “Nothing’s been done since then,” she said. “We need more facts.”

The owner, Ariel Haas, who also serves on the Chimney Rock Task Force, has not submitted a formal application and must complete a new survey before any rezoning request can proceed.

Looking ahead

As the meeting closed, board members reflected on the village’s balancing act: supporting tourism through rentals and trails, rebuilding its core businesses, and maintaining the character of a small mountain community.

“It’s not like we love to have more work to do,” Duncan said. “But we feel like it’s good to protect the village.”

The next Planning Board meeting is scheduled for Oct. 21.