Town of Lake Lure Updated Public Response Regarding Second Mountain, LLC - 9/5/26
The Town of Lake Lure is providing the following update on the pending litigation with Second Mountain, LLC on September 5, 2026.
While the Town generally refrains from commenting on pending litigation in order to protect the integrity of the legal process, the ongoing lawsuit filed against the Town of Lake Lure by Second Mountain LLC has generated significant public interest and discussion. In the interest of transparency, the Town believes it is appropriate to provide factual background regarding the lease relationship, the accommodations extended to the tenant, and the Town's actions concerning municipal property.
The tenancy originated through a public solicitation process in which interested parties were invited to submit proposals for use of the property. The tenant was selected through that process, and the original lease was negotiated, agreed upon by both parties, and executed on April 24, 2024. At the request and for the benefit of Second Mountain LLC, the Town later agreed to divide the original arrangement into separate agreements. Under the revised structure, Second Mountain LLC entered into a lease for Suite A, while Lake Lure Rowing LLC entered into both a lease for Suite B and a concession agreement. The revised agreements retained the principal terms of the original arrangement and were executed on August 29, 2024.
Consistent with those agreed-upon terms, rent was not required to begin until July 2024, allowing the business time to establish operations before incurring rental expenses. Following Tropical Storm Helene, the Town further accommodated the tenant by deferring rent payments for October, November, and December 2024 until the end of the lease term in April 2029. In addition, although the lease provides for annual rent increases of 2%, the Town elected not to implement those increases in either 2025 or 2026 as a means of supporting the business and reducing its operating costs during a period of ongoing recovery.
Although rent payments were received after the contractual due date on multiple occasions, prior to Second Mountain LLC suing the Town, the Town had not pursued available remedies and instead continued working cooperatively with the tenant.
Prior to litigation, the Town Manager and Town Attorney met with the tenant and proposed revisions to the existing lease intended to provide benefits to both parties and resolve outstanding concerns. After litigation commenced, the Town again participated in mediation and presented a proposal designed to resolve disputes, preserve the tenancy, and avoid additional legal proceedings. The Town also released a settlement offer on Friday, August 28, 2026, which is still available.
Efforts to resolve this matter remain ongoing. The parties attended small claims court in Rutherford County on September 3, 2026, on Second Mountain's failure to timely make rent payments. The magistrate chose to continue the hearing until September 15. The Town will continue to follow the appropriate court procedures to see this matter through to resolution.
With respect to the Police Boathouse, the Town's position remains that the facility is a municipal asset that has supported public safety and lake enforcement operations for decades and continues to be required for those purposes. The Town has a responsibility to maintain access to and control of municipal facilities so they remain available to serve residents and visitors. When the Town became aware that property associated with the tenant had been placed within the facility without Town authorization, notice was provided and opportunities were given for the property to be removed. When the property was ultimately removed, the Town chose to secure and store the items rather than dispose of them, and those items remain available for retrieval.
The Town selected the tenant through a public process, entered into a mutually agreed lease, deferred rent following Tropical Storm Helene, elected not to implement contractual rent increases in 2025 or 2026, participated in mediation, extended settlement proposals, and preserved the tenant's property after its removal from the Police Boathouse. The Town has consistently sought practical and mutually beneficial solutions, both before and after litigation was filed, while fulfilling its responsibility to manage municipal assets and protect the interests of the broader Lake Lure community.
