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Dillsboro votes to relinquish future property title to county
By Stephanie Salmons and Lynn Hotaling
After a request from Commissioners’ Chairman Brian McMahan, Dillsboro leaders agreed to cede title to property they stand to gain as a result of Duke Energy relicensing agreements to Jackson County.
McMahan met with Dillsboro officials during a work session prior to the town’s Oct. 1 meeting to discuss the possibility of Dillsboro handing over the property surrounding the Dillsboro Dam in the event the town receives title to it.
Under a 2004 Stakeholders Agreement, signed by Duke, Dillsboro and some 30 other local governments, agencies and groups, land that Duke currently owns around the Dillsboro Dam and Powerhouse would be given to Dillsboro if the power company is successful in its relicensing applications.
The removal of the Dillsboro Dam is the linchpin of that agreement as it would provide mitigation for the effects of the continued operation of Duke’s larger hydroelectric projects in Jackson County.
Dillsboro officials were not in favor of removing the dam, and Dillsboro Mayor Jean Hartbarger signed the Stakeholders Agreement with reservations. She signed it, she said at the time, so that Dillsboro could continue to be part of the ongoing relicensing process.
Dillsboro has already received $50,000 from Duke, which it applied toward the purchase of the former Monteith farm, which the town is turning into a park.
The Federal Energy Regulatory Commission, which oversees hydroelectric generation for the nation, has approved Duke’s plan to remove the Dillsboro Dam.
Another reason given during the session for Dillsboro to convey the property it might receive from Duke to the county is recreation. According to McMahan, the land would be under the same restrictions if the county were to get it as if the town owns it and would have to be used for recreational purposes.
When contacted Tuesday, McMahan said it was his understanding that the Settlement Agreement stipulated recreational use for the property, but that he would have to examine the document to verify that.
Town Clerk Herb Nolan also said he thought the property had to be used for recreation and said the county was better equipped to manage it in that event. In addition, some of the land that Dillsboro might obtain is on the south side of the Tuckaseigee River (off Mockingbird Lane) and is not in Dillsboro’s city limits, Nolan said.
The Settlement Agreement does not appear to require recreational use for the property Dillsboro might receive. The following is from Section 6.4 on page 24 of that document:
“(5) Offer, for one year following completion of dam removal and powerhouse decommissioning and any (Duke Power Nantahala Area) portion of stream restoration and monitoring, to convey interest to all its property associated with the Dillsboro Project including land and improvements to the Town of Dillsboro.”
According to Duke spokesman Fred Alexander, the Settlement Agreement doesn’t stipulate a use for the property.
“The way I understand it, Dillsboro could use the property as they see fit, or they could lease or sell it to anyone they choose,” Alexander said.
McMahan indicated during the session that Jackson County, which opposes Duke’s plan to remove the dam as mitigation for its other projects, is seeking federal approval to generate power at Dillsboro.
“Our hope is that the dam is going to be here and that we are going to be able to go in and contract with a firm to reassess what we’ve got,” he said. “From all indications that we’ve been given, we can triple the output of what’s there and really have a nice power source that could generate enough electricity to not only take care of some local needs but sell electricity back on to the grid at a fairly good rate. The money generated from that would be used on things in the community that benefit everybody. Our goal is to try and save the dam, number one, and number two, to put it back into full operation and use it as a viable tool and resource.”
When asked Tuesday why the county had asked Dillsboro about the property now in light of the fact that Jackson County opposes dam removal and Dillsboro would not get the land unless the dam comes out, McMahan said that attorney Paul Nolan had recommended the county “move forward with it.”
Paul Nolan, an Alexandria, Va.-based energy attorney, is paid by Jackson County to oppose Duke’s relicensing plans.
Herb Nolan said he didn’t see how agreeing to transfer the property to the county in the event that Dillsboro receives it could violate the Stakeholders Agreement because that action wouldn’t take place unless the dam is removed.
It was stated during the session that Duke was required to file an application for a permit to run the dam on an annual basis. At the end of each year they have to surrender their license and apply for a new one. After relinquishing the license this year, Duke failed to apply for a new one, after which Jackson County applied for the license.
Alexander disagreed with that assessment, saying he wasn’t aware of any requirement that Duke seek yearly licenses.
The commission will issue yearly licenses if an application is pending, but in the case of Dillsboro it chose to issue approval to remove the dam instead, he said.
FERC has issued yearly licenses for Duke’s other projects with pending applications before the commission, he said.
The unanimous vote approving a resolution granting Jackson County’s request for rights to the property Dillsboro stands to gain under the Stakeholders Agreement came during the regular meeting that followed the work session.
In other business Oct. 1:
– Mayor Jean Hartbarger told board members that Frank Wilkie has agreed to represent Dillsboro on the Economic Development Commission, and his appointment was confirmed unanimously. Wilkie will replace Hartbarger on the EDC board.
“He has been on the EDC board before, and I think he will be a valuable asset to the EDC,” Hartbarger said.
– Letters to those affected by the planned extra-territorial jurisdiction of property in the Yellowbird Branch area were mailed on Sept. 20, according to Herb Nolan. A public hearing concerning the ETJ is scheduled Wednesday, Nov. 21, at 6 p.m. The ETJ resolution was unanimously approved during the town’s September meeting.
– Dillsboro leaders are in the process of applying for several grants from the Environmental Protection Agency that would fund town water projects that help control water pollution.
– Board members voted unanimously to add $900 to the city’s advertising budget.
Prior to this vote, board members voted to advertise in the Chamber of Commerce magazine, “Our Town,” and also to take the cost of Web site development for Monteith Park out of the advertising budget. The Monteith Park Web site will cost $400 for development and will be part of the town’s official Web site.
– Playground equipment for Monteith Park has been ordered and should arrive within the next few weeks. The equipment had to be ordered and delivered before December in order to purchase it at the quoted price.
– Board member Jimmy Cabe brought up concerns about the Great Smoky Mountains Railroad blocking traffic in town.
“I think it’s time we did something because they’ll make cars sit there for an hour and a half and they won’t even say anything,” said Smith.
When the train is loading or unloading, it blocks a one-way street, Herb Nolan said.
“People get down there and are technically breaking the law when they turn around to go back,” he said.
Hartbarger suggested e-mailing the railroad and asking it to put up signs stating train departure times.
– Board members voted to have a temporary electric power pole installed at the Monteith House. Expenses will be paid from the Monteith House project fund.
(Editor’s Note: The Stakeholders Agreement mentioned above is available online at www.duke-energy.com. Select “nantahala-nc” from the first pull-down menu (residential customers) and then click on “hydroelectric relicensing” and then on “settlement agreement and attachments.” The Stakeholders Agreement is the first document. Those who cannot access the document online may call Fred Alexander at (828) 369-4534 to request a copy.)
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