By Gary Corsair
Staff Writer
Clay County Rural Development Authority members aren’t the only people confident that an upscale hotel at Chatuge Shores Golf Course will be a boon to the local economy.
Last week, Opportunity Appalachia pledged support in the form of a $30,000-$75,000 grant for the Lake Chatuge Boutique Hotel project, a $20 million endeavor expected to create 85 jobs and bring vacationers to Clay County.
Opportunity Appalachia, a program that supports rural development to build entrepreneurial communities, agreed to provide technical assistance and more to the Clay County Rural Development Authority, which plans to bring a nationally-recognized hotel chain to the county.
The planned boutique hotel was one of 34 projects selected for funding and support by the non-profit organization.
Southwestern Commission Chairman Russ Harris says that securing the Opportunity Appalachia grant was a significant accomplishment.
“A lot of times, it’s the pre-development costs that are difficult to come by for a community project like the boutique hotel in Clay County so that program seemed like a perfect fit to help clear that final hurdle,” Harris said.
Of course, several things must happen before the first guest checks in.
Here’s how the project will unfold:
• First, Opportunity Appalachia will prepare a request for technical assistance and distribute it to a group of more than 50 technical assistance providers already identified and approved.
• Second, Opportunity Appalachia will review technical assistance proposals and submit the most cost-effective options to the CCRDA for acceptance. Technical assistance will include market assessment, design/architectural, engineering, business plan development, financial structuring and prospectus preparation.
• Third, Opportunity Appalachia will work with the selected technical assistance group while reaching out to potential investors. The program will not hire staff but will contract with regional and national organizations for services.
Once the investment prospectus is completed, Opportunity Appalachia and technical assistance providers will approach investors and pursue tax credits.
Steve Hindsman is especially excited about pursuing New Market Tax Credits, which he describes as “phenomenal.”
Harris says Hindsman is on the right track.
“Steve Hindsman reached out to me a little over a year ago asking for assistance with the New Market Tax Credit process. This is a very specific program and not something we are very familiar with, but as the regional Council of Governments, a lot of what we do is to help connect people with resources that they otherwise might not be aware of,” Harris said. “We were able to set up a call with staff from People Inc. from Abingdon, Va., who is a Tax Credit Developer. They were able to walk Steve through some of the mechanics of putting the deal together, but honestly, in a lot of cases, they just confirmed that he was on the right track. Steve gained an amazing understanding of a really complex process and sometimes just needed someone to check his numbers with.”
Hindsman says he’s been learning since he accepted an invitation to join the CCRDA seven years ago.
“Opportunity Appalachia expects the project technical assistance to be completed by the Spring of 2023 and will continue to provide support as the RDA moves forward to seek project financing,” Hindsman remarked. “Opportunity Appalachia will handle the money. We don’t get any money. They’re now basically leading this project. There’s no chance of shysters who see an opportunity to make easy money getting involved. That won’t happen to Clay County because of this program. They go find investors. We don’t know who to use. They already work with those people.”
Parker Poe Attorneys & Counselors at Law, a prestigious firm with 275 attorneys in eight offices in four states, has been retained to oversee the CCRDA’s plans.
Parker Poe is paid with funds generated by the Chatuge Shores Golf Course, which is owned by the CCRDA.
“There’s not going to be anything other than the very best approach to making this happen,” Hindsman said.
The hotel project has not, and will not, cost taxpayers a single penny.
“The county government and tax paying citizens have no liability or requirement to fund the activities of the CCRDA,” Hindsman said. “We must report to the North Carolina Local Government Commission and they must approve any major debt being entertained prior to it becoming a reality.”
The county will certainly benefit.
According to a study by Atlanta-based Key Advisors, “Tourism remains a key component to the county; however, bed tax collections are minimal due to the lack of any quality hotel product. Hotel/Motel tax generated in Clay County was approximately $21,000 in 2017. By comparison, Graham County, the least populated county in the SWC reported a Hotel/Motel tax of $258,000 in 2017 and nearly $400,000 in 2021.”
The Lake Chatuge Boutique Hotel has the support of the Southwestern Commission.
“I think the project would be wonderful for Clay County,” Harris said. “Clay County has some of the best outdoor recreation opportunities in the southeast but without available lodging there is no way to capture those dollars in the county. This project would allow the county to attract tourists into the community and keep more of those dollars to the benefit of the county’s residents. It really says a lot that tourism revenue for Clay County is less than a third of that in Graham County. I really believe overnight lodging is the key to starting to close that gap.”