Rob Hardy
Fontana Dam – Amid rampant speculation that a county municipality could cease to exist in just a few months, the lessee of a popular local resort appeared at a recent council meeting.
The first 15 minutes of Feb. 26’s Town of Fontana Dam assembly were arguably the most contentious on record. Robin Turner with Fontana Ventures, LLC, addressed the council after January’s somber meeting revealed the town was just a few months away from running out of money. Fontana Village Resort and Marina is the town’s only source of income, as revenue is collected through “user fees” (such as water bills and – until recently – garbage pick-up).
The only issue is that a binding agreement does not exist between the town and Fontana Ventures: a user agreement has not been signed since the limited-liability corporation took over April 27, 2023. Fontana Dam has found itself in a similar predicament before: in November 2019, previous lessees fell behind $90,000 in user fees – simply because there was no official paperwork to hold the lessee accountable.
Instead, the town has always worked with a lessee on more of a verbal agreement. Town administrator Zelerie Rogers said in January that a payment had not been received for user fees since December 2023; with the town rapidly approaching 2025-26 fiscal preparations, a lack of payment may result in the entire process becoming a moot point.
Turner said the widespread attention – including The Graham Star’s Jan. 30 report on the matter – has led to the resort being questioned about its ability to pay vendors. He quickly refuted the narrative by stating that Fontana Village is holding steady financially and is paying its vendors.
What followed was a heated, 10-minute, back-and-forth discussion with mayor Rob Hardy. Turner covered a wide array of topics, questioning decisions made by the town about staffing, Hardy’s duties and even the looming cloud that continues to drain the town’s resources dry: the 80-year-old water lines, which needs almost round-the-clock care while red tape gets cleared up for a grant to repair problematic areas in the system from the Appalachian Regional Commission.
Turner never gave a direct answer as to why Fontana Ventures has not signed a user agreement, though the town contended one had been presented for signature on previous occasions. The discussion revealed that each council member makes $150 a month for their service; Hardy is paid $750 for his role as mayor. Council expenses make up $14,796 of the town’s annual budget.
Through a public records request, The Star learned that the balance owed in user fees by Fontana Ventures as of Feb. 26 is $144,342.49.
One of several investors present at Fontana Village Resort is Thomas Byrd, who also serves as a council member. He vowed during the meeting to do “whatever it took” to make sure the town remained operational.
Loss continues
ORC (Operator-in-Responsible-Charge) Carrie Stewart gave her monthly report on water loss at the meeting, as well.
Chemicals to treat the water have been proving costly for the town’s unrestricted general fund balance. Rogers said in January that Fontana Dam is spending $8,000 a month in expenses; one check in January for chemicals eclipsed the $9,000 mark.
The math continued to spell disaster Feb. 26: the more water lost, the more chemicals cost.
Stewart reported a production of 9.45 million gallons of water in January alone, a 32.4% increase from 7.1 million in January 2024. She also noted that the water plant is averaging 85% water loss; reports are not finalized for 2024, but losses are estimated to be 85-86%. In 2023, the loss was 74%.
The grant cannot come through soon enough, as chemicals are being ordered monthly – and the resort’s busy season is right around the corner.
“I don’t know what’s going to happen when we turn the pools on,” Stewart emphatically stated.