Lake Lure Hearing Exposes Growing Tensions Over Lawsuit, Recovery and Town's Future

A public hearing on Lake Lure’s proposed 260-page comprehensive plan Monday quickly expanded into a broader debate over a pending lawsuit involving Lured Market, the town’s recovery from Hurricane Helene and the future of major infrastructure projects.

Mayor Carol Pritchett repeatedly reminded residents that the Aug. 24 special meeting was limited to the comprehensive plan and that questions about the town’s legal dispute with Second Mountain LLC, which operates Lured Market, would be addressed at a Wednesday town council work session.

“This is a special session meeting which is called for the specific and sole purpose of a public hearing which we are required to do for our comprehensive plan,” Pritchett said. “So the only topics that can be addressed at this meeting are topics that have to do with the comprehensive plan.”

Pritchett later encouraged residents who wanted to discuss the lawsuit to review the court filings before Wednesday’s meeting.

The litigation, filed by Second Mountain LLC in Rutherford County Superior Court, involves a dispute over a town-owned police boathouse and the lease of the former Lake Lure ABC building where Lured Market operates.

The town has denied Second Mountain’s allegations and filed counterclaims.

On Monday, town attorney Marty Benson also filed a summary ejectment action against Second Mountain in Rutherford County District Court.

Lured Market dispute spills into planning debate

The legal dispute became part of Monday’s discussion because residents connected the future of the town-owned property to the comprehensive plan’s goals for downtown development and economic sustainability.

Resident Hilary Yoxall attempted to ask what would happen to the building if the existing tenant were no longer occupying it.

“I am asking a logistical question that deserves to be answered, and I deserve to be heard,” Yoxall said.

Pritchett said the question was outside the scope of the hearing.

“We are not going to address that tonight,” she said. “I invite you to come Wednesday morning to the working meeting and we’ll have a public comment session on that subject.”

When Yoxall reframed the question as a planning issue — asking what would happen if the town regained control of the building — Pritchett said the town had no plans for it.

“We have absolutely no plans for that building whatsoever,” Pritchett said. “It is not our intent, and it was not our intent as we formed the comprehensive plan to make other plans for that building.”

Pritchett also acknowledged the financial stakes.

“We have a tenant now who has signed a contract to pay that amount, okay?” she said. “It is our hope that we will not be put in a position where we don’t have that money.”

The amount discussed was approximately $4,000 per month.

Pritchett said the town had not anticipated the lawsuit when the comprehensive plan was developed.

“Until very lately, we had no idea that a lawsuit would be filed against the town,” she said.

Paul Brock, owner of Lured Market and Grill, also addressed the council. Brock urged officials to focus on rebuilding Lake Lure’s commercial center.

“We need a vibrant town center,” Brock said. “We needed one before the storm, and nothing was happening.”

He encouraged residents to attend Wednesday’s meeting and questioned whether the comprehensive plan should move forward before the November general election.

No one filed to run against Pritchett for Mayor in the municipal election. Multiple candidates are running for two spots on the town council: Incumbent Jim Proctor and challengers Friedrich Jaeger-Faber, Dave Lusk and Richard Sayles. Scott Doster is not running for re-election.

Dispute over Helene deaths

Another significant exchange involved Hurricane Helene and the Rocky Broad River.

During a discussion about the future of Lake Lure’s century-old dam, Mayor Pro Tem David DiOrio said the dam had played an important flood-control role during Helene and contrasted the Rocky Broad River watershed with areas along the Swannanoa and French Broad rivers.

“Swannanoa and the French Broad River had a lot of fatalities,” DiOrio said. “There weren’t any in the Rocky Broad.”

Available public records and reporting do not support the statement that there were no fatalities in the Rocky Broad River watershed.

North Carolina officials have reported 42 Helene-related deaths in Buncombe County, 12 in Henderson County and four in Rutherford County.

The Broad River, also known as the Rocky Broad River, begins in Buncombe County, flows through Henderson County and continues into Rutherford County.

Not all of the deaths were drownings. Landslides and other effects of the storm also killed residents.

State officials do not publicly identify where every victim was found. Media reports, however, have documented deaths in communities near the river and its tributaries, including the Craigtown area, Bat Cave and Lake Lure.

A Chimney Rock woman also died after her home was swept away during Helene and was later found in the river near Lake Lure, according to public records and previous reporting.

The state currently lists 107 storm-related fatalities statewide.

Federal military officials have cited a higher number. A 2025 statement from the Pennsylvania Air National Guard’s 171st Air Refueling Wing said disaster mortuary teams "processed 79 of 140 deceased people in the Asheville area" during the Helene response.

Dam, sewer projects face yearslong timeline

The Helene discussion came as Lake Lure continues planning for replacement of its century-old dam.

The town is also pursuing wastewater improvements, sewer collection-system repairs and dredging.

Preliminary estimates for dam replacement have approached $175 million, and officials said Monday that the project has reached the 30% design stage. The town has received additional federal funding to continue detailed design work.

Officials said construction could take 10 to 12 years after funding is secured.

The sewer system presents another major challenge.

Town officials said portions of the roughly century-old system are located beneath the lake and require the lake to be drawn down for some repairs.

“The problem with the sewer system is the lake has to be drawn down in order to go fix it,” DiOrio said. “When our system goes down, we’re all in for a very rude awakening.”

Comprehensive plan looks toward 2040

The public hearing was primarily focused on the proposed comprehensive plan, which is intended to guide Lake Lure’s development through 2040.

Alan Toney, planning director with the Foothills Regional Commission, said the planning process has taken approximately a year and included public engagement and data analysis.

“We’ve created a really strong document that really guides the future for the next 10, 20 years,” Toney said.

Residents questioned the plan’s approach to recreation, downtown development, tourism, health care, transportation, economic sustainability and infrastructure funding.

Some residents also questioned how the town conducted its public survey.

One resident said she never received the survey and questioned how participants were selected.

Officials said the survey was distributed through the town newsletter and promoted on Facebook. Town officials said it generated more than 700 responses.

The proposed plan identifies five major priorities, including the dam, sewer infrastructure, dredging and downtown revitalization.

Officials said they hope major infrastructure projects can be completed by 2040, although the dam is expected to be the longest-running project.

Residents also pressed officials for a more detailed implementation schedule showing what projects would occur in 2027, 2028 and subsequent years.

Town officials said projects are at different stages of design, funding and implementation.

Downtown recovery remains central

The proposed plan calls for incremental redevelopment of Lake Lure’s downtown area, including a more walkable, mixed-use center with retail, restaurants and residential development.

It also identifies downtown revitalization as a priority and calls for pursuing Community Development Block Grant funding for commercial improvements.

The ongoing dispute involving Lured Market has complicated that discussion.

The hearing ultimately ended without a vote to adopt the comprehensive plan. The document is expected to continue through the town’s planning and zoning process before returning to the council for final consideration.

Pritchett maintained that keeping the lawsuit separate from Monday’s hearing was intended to give residents adequate time to discuss the comprehensive plan itself.

“The point of saying that this hearing is only for the comprehensive plan is to ensure that we have an opportunity to give everyone plenty of time to ask questions and discuss the comprehensive plan,” she said.

But the evening illustrated how difficult it is to separate Lake Lure’s long-term planning from the issues confronting the town today.

The Lured Market litigation remains pending as the town weighs the future of its downtown, municipal properties and infrastructure projects that could cost hundreds of millions of dollars.

Nearly two years after Hurricane Helene devastated the Hickory Nut Gorge, Lake Lure is simultaneously dealing with a legal dispute, rebuilding critical infrastructure and attempting to establish a vision for the community through 2040.