Lake Lure Town Council Work Session and Action Meeting Summary - June 24, 26

The Town Council Work Session and Action Meeting was held on Wednesday, June 24, 2026 - 8:30 a.m.  

• The meeting was held at The Landings at 920 Buffalo Creek Road, Lake Lure, NC 28746. 

• The public was invited to attend the meeting. 

• The following is a summary of the meeting for those who could not attend.  

• For additional information, you may download the meeting packet.

I. Call to Order 

Mayor Carol Pritchett called the meeting to order. 

II. Agenda Adoption

The meeting agenda was approved with the addition of a Closed Session at the end of the meeting. 

III. Consider Approval of Memorandum of Understanding (MOU) with Carolina Land and Lakes for Community Development Block Grant (CDBG) Assistance

Carolina Land & Lakes Resource Conservation and Development (CLL) is a nonprofit organization that assists North Carolina communities with community development, grant funding, and natural resource projects, with a particular focus on water resources, watersheds, lakes, dams, and environmental resiliency.

• CLL has provided the Town with a proposed Memorandum of Understanding (MOU) to assist with Community Development Block Grant (CDBG) applications and provide grant administration services if funding is awarded.
• Under the MOU, CLL would provide grant writing services estimated at 100 hours and, if awarded, grant administration services estimated at 215 hours annually at a rate of $125 per hour.
• Given CLL’s expertise in water resource and infrastructure-related projects, staff believes this partnership is a good fit for the Town’s current recovery and resiliency priorities.
• Additionally, it is hoped that the team could assist with grants for the Public Safety Building. 
• If Council approves the MOU, representatives from Carolina Land & Lakes RC&D will be present to discuss the Town’s priorities and potential CDBG funding opportunities.

Council approved the Memorandum of Understanding with Carolina Land & Lakes Resource Conservation and Development to assist with Community Development Block Grant (CDBG) applications and provide grant administration services if funding is awarded.

IV. Consider Approval of Budget Amendment #383

Finance Director Steve Ford advised that this amendment is intended to reallocate funding within the Town’s FY 26 General Fund and Water and Sewer Fund budgets to address accounts that are currently over budget.

• Adjustments will be made through internal transfers from available funding within related accounts where feasible. In the event that sufficient internal transfer capacity is not available at fiscal year-end to fully offset additional expenditures, a transfer from the Town’s Fund Balance is recommended to ensure all obligations are properly accounted for and recorded.
• As in prior fiscal years, a higher transfer amount is being recommended as a precautionary measure.
• Any portion of the authorized transfer that is not ultimately required will remain in or be returned to Fund Balance.
• This process reflects established accounting practice utilized in recent years and does not represent a request for additional appropriations or new spending authority.
• Rather, it is intended to properly account for expenditures already incurred within the current fiscal year.

Town Council approved Budget Amendment #383.

V. Consider Approval of Amendment 1 to LaBella Task 30 for Charlotte Drive Waterline

LaBella has submitted proposed Amendment No. 1 to Task Order 30, which covers design and construction-phase services for the Charlotte Drive Waterline Project
funded through the Hurricane Helene State Revolving Fund (SRF) program.

• The amendment adds the design of approximately 1,300 linear feet of waterline along Lake Ridge Drive to replace existing private wells and provide a reliable public water supply regardless of fluctuations in Lake Lure's water level.
• The additional scope includes surveying, utility locating, engineering report updates, design, permitting, and construction support services, increasing the Task Order amount by $68,500, from $761,500 to $830,000.
• NCDEQ, which administers the Helene SRF funding, has confirmed that if funding remains available within the project budget, those funds may be used for this waterline expansion.
• The current plan is to complete the design for the Lake Ridge Drive extension and include it as an alternate bid item when the Charlotte Drive Waterline Project is advertised for construction.
• If bids are received below budget and sufficient funding is available, the Town may elect to accept the alternate and incorporate the Lake Ridge Drive waterline into the construction contract.

Town Council approved the Amendment No. 1 to Task Order 30, which covers design and construction-phase services for the Charlotte Drive Waterline Project
funded through the Hurricane Helene SRF program.

VI. FY24 Audit Presentation

The Town contracted with Thompson, Price, Scott, Adams & Co., P.A. (TPSA) to complete the FY24–FY26 audits. They have audited the financial statements of the governmental activities, the business-type activities, the aggregate component units, each major fund, and the aggregate remaining fund information of Town of Lake Lure for the year ended June 30, 2024.

• The PSA has completed the FY24 audit report and is required to present it to the governing board.
• Auditor Allen Thompson presented the annual audit findings to the Board and issued an unmodified audit opinion, indicating that the Town’s financial statements are fairly presented in all material respects and reflecting a strong overall financial position.

• The presentation included a review of key financial metrics, including fund balance trends, revenue performance, and expenditure patterns.

• Staff and the auditor discussed fund balance percentages, collection rates, and overall financial stability indicators.

• Additional discussion focused on revenue and expenditure breakdowns and how these figures compare to prior fiscal periods.

• The auditor and Board also reviewed fund balance targets and debt capacity considerations, with emphasis on maintaining appropriate reserves to support long-term financial health and operational stability.

• Audit findings and recommendations were presented, including observations related to separation of duties, cash reconciliation processes, and procurement card classification. The auditor noted that these findings are common in small municipal operations due to staffing limitations and structural constraints.

• The Board discussed ongoing challenges with maintaining effective separation of duties within a small-town administrative structure, as well as the importance of strengthening internal controls for cash receipt monitoring and procurement card usage.

• Recommendations for policy and procedural improvements were reviewed in order to enhance financial oversight and compliance. Finally, discussion included the timing of audit delivery, with consideration given to opportunities for earlier completion of audit processes in future fiscal years.

Following the presentation, TPSA and the Town will begin the FY25 audit with the goal of completion in the fall, followed promptly by the FY26 audit.

VII. Update on the Request for Injunctive Relief Against Parcels 1611501 and 1600457 for Failure to Follow Approved Plans and Abate Code Violations

There are two abutting properties located along Mintwood Ct. (parcels 1611501 & 1600457).

• The property owner obtained permits to construct two dwellings in 2025. However, the owner deviated from the approved plans and the general contractor, and financially responsible party (FRP), left the project.
• The permits were revoked after the deviation & the FRP leaving the project.
• The plan deviation consisted of tree removal that exceeded the approved plans.
• The deviation is something that the town can work around if there is a re-planting plan following house construction.
• However, the property owner has failed to provide updated plans that illustrate the deviation and re-planting plans.
• The property owner has obtained a new land disturbance permit, with a new FRP, to remove the downed trees on 05/06/2026.
• However, the property owner has indicated they do not know when they will begin work. 
• The downed trees may constitute a fire hazard, but staff do not believe they rise to the level of a nuisance code violation as written.
• Per the Nuisance ordinance:
  • Sec. 18-2. Certain conditions declared as public nuisances.
  • The following enumerated and described conditions, or any combination thereof, are hereby found, deemed, and declared to constitute a detriment, danger and hazard to the health, safety, morals and general welfare of the inhabitants of the town and are found, deemed and declared to be public nuisances wherever the conditions may exist and the creation, maintenance or failure to abate any nuisances is hereby declared unlawful:
    • (1) Any weeds or other vegetation having an overall height of more than 24 inches above the surrounding ground, provided that the following shall not be considered to be a part of this condition: trees and ornamental shrubs; cultured plants; natural vegetation on undeveloped property that is not a threat to the character of surrounding properties; and flowers and growing and producing vegetable plants.
    • (15) A collection place for tree limbs, dried brush, dead vegetation, stumps or other decayed wood and materials or other similar rubbish that is offensive by virtue of odors or vapors or by the inhabitance therein of rats, mice, snakes, or vermin of any kind which is or may be dangerous or prejudicial to the public health.
• Per the Land Disturbance Ordinance:
  • Sec. 22-37. Injunctive relief. (a) Whenever the town council has reasonable cause to believe that any person is violating or threatening to violate this article or any rule or order adopted or issued pursuant to this article, or any term, condition, or provision of an approved erosion control plan, it may, either before or after the institution of any other action or proceeding authorized by this article, institute a civil action in the name of the town for injunctive relief to restrain the violation or threatened violation.
  • The action shall be brought in the superior court of the county.
  • (b) Upon determination by a court that an alleged violation is occurring or is threatened, the court shall enter any order or judgment that is necessary to abate the violation, to ensure that restoration is performed, or to prevent the threatened violation.
  • The institution of an action for injunctive relief under this section shall not relieve any party to the proceedings from any civil or criminal penalty prescribed for violations of this article.

• The bottom line issues are erosion control and tree removal. Fines were impossed for tree removal but they are minimal.
• Mr. Carpenter advised that he has attempted to follow up with the property owner via telephone and in writing to no avail.  
• Public comment was received from Rosanna Thompson from Garden Lane.
  • She raised concerns regarding fire risk, pest activity, and ongoing erosion impacts associated with the property.
  • These comments were considered as part of the broader discussion on public safety and environmental impacts.
  • She thanked the Town and Community Development for addressing this matter. 
  • She submitted the following information in writing prior to the meeting: 
    • The 26th of June is 30 days from the last meeting and unfortunately the lots have not been touched as of today. Since the October tree cutting and “Stop Work Order”, the brush has gotten more dry and unfortunately more of a safety concern and yes, a nuisance to the neighborhood (Ordinance Sections 18.1 and 18.2)
    • Ordinance: “Sec. 18-1. "Nuisance" defined. For the purpose of this chapter, the term "nuisance" means or refers to any condition or any use of property or any act or omission affecting the condition or use of property which threatens or is likely to threaten the safety of the public; adversely affects the general health, happiness, security or welfare of others; or is detrimental to the rights of others to the full use of their own property and their own comfort, happiness and emotional stability because of decreased property values and the unsightliness and decreased livability of neighborhoods.    
    • Sec. 18-2. Certain conditions declared as public nuisances. (4)  An open place, collection, storage place or concentration of combustibleitems such as mattresses, boxes, paper, automobile tires and tubes, garbage, trash, refuse, brush, old clothes, rags, or any other combustible materials collection.  
    • (5)  Any accumulation of garbage, rubbish, trash, or junk causing or threatening to cause a fire hazard, or causing or threatening to cause the accumulation of stagnant water, or causing or threatening to cause the inhabitation therein of rats, mice, snakes, mosquitoes, or vermin prejudicial to the public health. 
    • (8)  The open storage of any discarded ice box, furniture, refrigerator, stove, glass, building materials, building rubbish or similar items. The use of carports, open porches, decks, open garages and other outdoor areas that are visible from the street as a storage or collection place for boxes, appliances, furniture (not typical outdoor or yard furniture), tools, equipment, junk, garbage, old worn out broken or discarded machinery and equipment, cans, containers, household goods or other similar condition that increase the likelihood of a fire; may conceal dangerous conditions; may be a breeding place or habitat for mice, rats or other pests; or, create an unattractive condition or visually blighted property.
    • (9) A collection place for lumber, bricks, blocks, nails, building hardware, roofing materials, scaffolding, masonry materials, electrical supplies or materials, plumbing supplies or materials, heating and air conditioning supplies or materials or any other type of old or unusable building supplies (especially those with nails, staples or sharp objects and edges) unless such conditions are temporary in nature and caused by a current construction project in progress pursuant to a lawfully issued building permit.”
    • I wish to thank Mr. DiOrio for emphasizing repeatedly in the last meeting that public safety is the Town of Lake Lure’s highest priority and sincerely beg of the town to move forward with injunction relief from the court.
    • Of greater concern is the trout protected stream below the lots and the subsequent watershed, which is a main tributary to the creek and waterfall that descend into Lake Lure through the Village Resort at the end of Boys Camp Rd.
    • According to Mr. Rick Carpenter, erosion silt fences and proper grading will be essential to prevent sediment and pollution into the lake through the entire downstream watershed when this work proceeds. I have attached two maps that illuminate this concern in relation to the lots affected.
    • I am saddened to bring this topic back to your attention, as I would much rather focus my energy on the excitement of the progress we see in Lake Lure and the reopening of the beautiful lake. Unfortunately, I have no right or responsibility to address the damages done on these lots, except to ask the Town Council to press the property owner to comply within the stated deadline voted upon during the last meeting, or move forward with the injunction relief order requested by Mr. Carpenter.
    • Thank you for serving our town and I thank you in advance for helping organize these comments and the attachments for the meeting.

The Board also discussed best practices for implementing erosion control measures during the abatement process to minimize further environmental degradation while corrective actions are undertaken. Staff indicated that the bidding process for abatement-related work is expected to begin within the next 7 to 10 days, with the goal of moving forward promptly to address the outstanding violations.

VIII. Hager Strategic Solutions Updates

The Town works with Mike Hager and Bre Wilhelm of Hager Strategic Solutions for lobbyist services. Mr. Hager provided the following legislative update.

• He has attempted to find a solution to the issue with the fuel tank but no solutions have presented themselves to date. 

• Regarding potential state budget funding opportunities related to the chemical building and public safety facility, there was a discussion about available legislative funding sources that may be applicable to local infrastructure and public safety projects.

• Members reviewed current information on state-level funding opportunities and discussed the importance of positioning eligible projects to take advantage of legislative appropriations when available.

• Staff noted that continued monitoring of funding announcements and program requirements will be necessary as the state budget process develops.

• They also discussed broader legislative matters, including a property tax moratorium and related amendment discussions.

• Members reviewed the potential implications of such policy changes and the need to remain informed on legislative developments that could impact municipal revenue structures and long-term financial planning.

Council thanked Mr. Hager for his work on behalf of the Town.

IX. Town Manager/Project Updates

Town Manager Olivia Stewman provided Council with project and any other updates that are not included on the meeting agenda.  

• Marina, Stationary Docks, and Fueling Station: Decking on the stationary docks is now complete, and fencing is anticipated to be finished this week (June 15–19).

• Lake Lure Tours boat slips are scheduled to be attached the following week (June 22–26).
• The Town is currently working with Rutherford County Building Inspections to obtain a phased Certificate of Occupancy (CO), which would allow these completed elements to become operational while remaining project components are finalized.
• The fueling tank installation remains delayed despite staff efforts to expedite delivery; however, it is anticipated to arrive in early July.
• Once installed, this will represent the next phase for which the Town will seek an additional CO update.
• The floating marina and boardwalk remain on schedule for substantial completion by July 17th.
• Following that milestone, the contractor will shift focus to the installation of courtesy docks near Pool Creek Park.
• Town staff will be seeking Town Council input at the work session regarding the exact placement of these docks, which will remain within the general Pool Creek area.
• Replacement of the hot docks (for temporary docking while loading and unloading) is also currently underway.
• Cameras and signage are being added. 
• Progress continues.

Town Council  noted that no business may be transpired via the town docks unless a concession agreement is in place with the Town. 

• Marina Building: Peacock Architects is progressing with the design of the replacement marina building and is currently focused on incorporating required flood-proofing elements into the design.
  • The temporary marina building is anticipated for delivery next week (June 22–26), and Town staff are coordinating with Rutherford County Building Inspections regarding permitting requirements.
• Comprehensive Plan: Foothills Regional Commission is working to finalize the Town’s Comprehensive Plan.
  • The Comprehensive Plan Steering Committee met on June 16th to review the latest draft, during which a few additional edits were made.
  • The plan will next be presented to the Zoning and Planning Board for review at its July meeting for input.
  • Following that, it will be reviewed by Town Council during the July work session and action meeting.
  • Staff outlined that a public hearing and special called session are anticipated in early August to allow for formal consideration of the plan.
  • The Board discussed the sequencing of meetings and the importance of ensuring adequate opportunity for public input throughout the review process.
  • Members emphasized the need for clear communication regarding the timing of each step in the process to promote transparency and public understanding as the plan moves through the required approval stages.
  • A public hearing will be required prior to adoption to receive public input on the proposed plan.
  • Town staff is recommending a special meeting in late July or early August to conduct the public hearing and would like Council’s input on potential dates.

This meeting was recommended for the first week in August and was set for 8/5/26 at 5:00 pm.  This schedule will allow time for any necessary final revisions before Council considers adoption of the plan at the August regular meeting, though the timeline remains subject to change.

Additional Updates from the Meeting Package:

• Morse Park Grading: Stott Construction has been awarded the bid for the Morse Park Grading Project and is anticipated to mobilize and begin work on July 6th.
  • The overall anticipated timeline for completion, including both grading and seeding activities, is approximately four weeks.
• Non Motorized Boat Ramp in Morse Park: A non motorized boat is being designed near the river back behind Town Hall. 
• Culvert by Chimney Rock Baptist Church: A bid is our for this work to be completed.
• Dam Boom and River Boom: Design and engineering for the river boom anchoring system remain underway and are anticipated to be completed soon.
  • Anchors for the dam boom have already been installed.
  • Upon completion of the river boom engineering, the Town will move forward with procuring a contractor to install the anchoring system.
  • Concurrently, the Town will be soliciting bids for the procurement of both the river boom and dam boom equipment.
• Boys Camp Bridge Replacement: The Town will work with LaBella Associates to issue the Notice to Proceed (NTP) to NHM Constructors for the Boys Camp Bridge Replacement Project (June 15–20).
  • Issuance of the NTP will allow the contractor to begin procurement activities, with mobilization expected to begin in the coming weeks.
  • Once mobilization is complete, the contractor will have 120 calendar days to complete the project, with substantial completion anticipated no later than December 9th. At this time, the Town does not anticipate any major delays or impacts to traffic, and the temporary road is expected to remain accessible throughout construction.
  • Should any changes become necessary, the contractor has been asked to provide the Town with ample advance notice so that appropriate communication can be provided to the public and access can be coordinated as needed.
• Town Hall: The Town continues to work with FEMA regarding the restoration of Town Hall.
  • The primary issue remains a significant discrepancy between FEMA’s estimated repair cost and the Town’s cost estimate.
  • The Town agreed to move forward with the Damage Description and Dimensions (DDD) based on initial discussions and the understanding that FEMA’s estimate was limited to damage that could be physically observed during their site inspection.
  • It was anticipated that the scope and cost would be refined once detailed contractor assessments were completed.
  • Those assessments were completed and identified additional repair needs and associated costs necessary to fully restore the facility, including insulation, electrical systems, HVAC components, roofing, and other concealed conditions within walls and structural elements that could not be identified during FEMA’s site visit.
  • Based on discussions held on June 16, FEMA has indicated that it intends to issue a determination memorandum stating that it will not accept the Town’s revised scope and cost estimate.
  • Upon receipt of that determination, the Town will pursue the formal appeals process to seek reimbursement for the full scope of repairs identified in the contractor assessment.
  • While no final resolution has been reached, the Town has requested quotes from multiple contractors for site preparation activities necessary to begin restoration and is currently awaiting responses.
• Sewer/WWTP Replacement Projects: Design for the replacement WWTP remains underway, along with a detailed assessment requested by FEMA to evaluate repair versus replacement costs, despite repairs to the existing system not being a feasible option.
  • This analysis is intended to support FEMA’s determination regarding eligibility for funding a full replacement of the WWTP.
  • Similarly, the Town is working with FEMA on funding for the replacement of the subaqueous sewer system.
  • To date, the Town has coordinated with FEMA to develop an approach consistent with FEMA’s framework, which is based on damage that can be directly observed or documented.
  • Because much of the sewer system is not physically accessible, the Town submitted original system drawings along with a conceptual “like-for-like” replacement cost estimate.
  • This estimate assumes full system replacement in its original configuration, with the understanding that such a reconstruction would not be permitable.
  • The intent of this approach is to establish an initial obligation amount, which can then be adjusted through project versioning as the design progresses toward a constructible, permit-compliant replacement solution.
  • FEMA is currently reviewing and validating the initial obligation amount and is expected to obligate A&E funding in the initial phase.
  • The Town also plans to utilize remaining ARPA funds by the end of the year to support sewer system replacement efforts, with a primary focus on installation of piping across the dam, which is anticipated to occur this fall.
• Dam: Schnabel is continuing to finalize the 30% design for the replacement dam and will begin detailed design work shortly thereafter.
  • Town staff is also anticipating a proposed work order from Schnabel to complete the Dam Failure Impact Assessment, which the Town received funding to complete through the OSBM Helene Local Government Capital Grant Program.
  • This study is intended to evaluate and illustrate the extensive and widespread impacts that would result from a potential failure of the Lake Lure Dam.
  • The findings will further support the Town’s case for a replacement dam by clearly demonstrating downstream risk and consequences, as the Town continues pursuing funding through multiple avenues.

X. Public Comment

 There were no additional Public Comments.

​​​​​​​XI. Closed Session in Accordance with G.S. 143-318.11(a) (5) for the Purpose of Discussing Property Acquisition.

Town Council entered into a Closed Session.

XII. Adjournment

The meeting was adjourned.