Lake Lure reaches settlement with tenant

Agreement reduces rent, resolves boathouse dispute and calls for dismissal of pending eviction case

The Town of Lake Lure and Second Mountain LLC, the company operating Lured Market, have reached a settlement resolving two lawsuits over town-owned property along Memorial Highway.

The settlement agreement, signed Sept. 16 by Second Mountain member and manager Paul Brock and Town Manager Olivia Stewman, addresses litigation pending in Rutherford County Superior Court and Rutherford District Court.

The District Court case, 26CV001352-800, was filed Aug. 24 by the Town of Lake Lure against Second Mountain LLC as a civil magistrate summary ejectment action. Court records list both summary ejectment and money owed as causes of action.

The case remained listed as pending in the North Carolina court system, with a small claims hearing scheduled for Oct. 8 at 10 a.m. before Magistrate Brian Smith.

That hearing, however, is expected to become unnecessary under the settlement.

The agreement requires the town to file a voluntary dismissal with prejudice of the summary ejectment action. A dismissal with prejudice generally ends the claim and prevents the same claim from being refiled.

The litigation had moved quickly after the town filed its complaint.

Second Mountain accepted service Aug. 25. On Sept. 1, the company filed motions seeking to transfer, consolidate and stay the case. A broader filing Sept. 2 included motions to transfer, consolidate, stay and dismiss, along with an answer and affirmative defenses.

A Sept. 3 hearing was continued. Another hearing scheduled for Sept. 15 was also continued by agreement of both parties, with the case reset for Oct. 8. The settlement was signed the following day.

Under the agreement, Second Mountain will abandon any claim that it has a right to occupy the town-owned police boathouse at 2662 Memorial Highway.

Second Mountain will continue leasing its primary commercial space at 2654 Memorial Highway, Suite A, but under temporarily modified rent terms.

The company agreed to pay the town $3,218 in past-due rent within two business days after both sides signed the settlement. The town agreed to waive late fees and interest that accrued during August before Second Mountain attempted to make a payment Aug. 17.

September rent is reduced to $2,500 and must be paid within two business days after the town files the dismissal of the summary ejectment action.

Monthly rent will remain at $2,500 from Oct. 1, 2026, through April 30, 2027.

Beginning May 1, 2027, rent will return to the amount required under the original Suite A lease, and both parties will again be governed by the lease’s regular terms.

The agreement also addresses Second Mountain’s access to nearby waterfront facilities.

Second Mountain and its customers may use the town’s public boat slips and public boat ramp adjacent to the leased premises, but only as members of the public. The use is non-exclusive and subject to the same rules, restrictions, time limits and conditions that apply to other authorized public and commercial users.

Within one week of the agreement being executed, the town must provide illustrations showing the areas covered by the Suite A lease and by a related concession agreement associated with the property.

If Second Mountain disagrees with the boundaries identified by the town, both sides agreed to negotiate in good faith.

The town also agreed to begin the procurement process to remove or repair broken docks and infrastructure connected to the police boathouse “as soon as practicable.”

Lake Lure further agreed to use reasonable efforts to facilitate discussions with the NC Department of Transportation regarding a potential crosswalk near the leased property and neighboring businesses.

The settlement states that it is intended as a full and final resolution of claims, damages, liabilities, defenses, costs, expenses and attorneys’ fees arising from the disputes.

The District Court case was not the only litigation between the parties. The agreement also resolves Rutherford County Superior Court case 26CV000857-800.

Court records for the District Court case show the town paid $96 in filing costs when the action was filed Aug. 24 and had no balance due as of Sept. 17.

The signed agreement marks a negotiated resolution to a dispute that began with the town’s attempt to recover possession of property and money allegedly owed under the lease.

Rather than removing Second Mountain from its Suite A location, the settlement allows the business to remain, temporarily lowers the rent, ends its claim to occupy the police boathouse and places clearer limits on its use of adjacent public waterfront facilities.

One procedural step remains visible in the court record: the District Court case still showed an Oct. 8 hearing and a pending status. Under the settlement terms, the town is required to dismiss that case with prejudice.

WCAB News first exclusively reported the case on August 6, 2026.