Chimney Rock – North Carolina last week reached a historic agreement to buy Chimney Rock Park, one of the most recognizable natural attractions in the state.

Questions abound about the $24 million deal, what the park might look like in years to come and how it will operate. The Morse family has owned and operated the park in Rutherford County since 1902.

Here, we answer some of the questions about the park and sale:

Question: What kind of agreement was signed and what does it do?

Answer: It’s called an “asset purchase agreement,” and right now it’s an agreement between Chimney Rock Co. and The Conservation Fund to buy the 996 acres of parkland for $24 million. The Conservation Fund will turn the land over to the state.

It’s much more complicated than a typical land transaction and unprecedented in the state, said Dick Ludington, executive director of the Conservation Fund.

“We have an asset purchase agreement that involved acquiring the business entity, in addition to the real estate,” Ludington said. “We’ll be acquiring trademarks, equipment, contracts to buy Coca-Cola and to get the trash hauled — everything.”

Q: What does the sale do to Rutherford County’s tax base?

A: It’s not that big of a hit.

“It’s a pretty small percentage of the overall package, really,” said Rick Johnson, the county’s tax administrator.

Chimney Rock’s property in Rutherford has an assessed value of $9.1 million, which at last year’s tax rate of 61 cents per $100 of valuation would put their county taxes at about $55,500. Rutherford’s entire property tax levy totals $24 million.

County commissioners likely will change the tax rate in June because of recent revaluations.

The park’s property also lies in Lake Lure, which will lose $15,859 in annual taxes, and the village of Chimney Rock, which will lose $263. Local fire districts will lose $1,824.

Q: Will the park operate as it always has?

A: For the 2007 tourist season, yes. Beyond that the picture is fuzzier.

“It is not our intention to walk away and not look back,” said Todd Morse, president of the Chimney Rock Co. “An important part of negotiations was we wanted to set the future direction of how this place would be managed.”

The Morse family’s company will operate the park this year. Both sides have an option, by mutual agreement, for Chimney Rock to manage the park for two more years after 2007.

Q: What happens in the long run?

A: By May, when the purchase agreement is closed, the state will formulate a “transitional operations plan” that will give details on possible staffing levels, budget and other details.

“A longer-term operations plan may take another six months to a year after that to prepare,” Lewis Ledford, director of the N.C. Division of State Parks and Recreation, said in an e-mail. “It is our long-term intention to operate the park in a manner very similar to the way it has been operated in the past, but there will naturally be some adjustments for consistency with state park rules and policies.

Q: Will the park be staffed at levels like it is today, making it stand out from other state parks? Will employees keep their jobs?

A: With 28 full-time and 20 seasonal employees, Chimney Rock is now staffed at a much higher level than other state parks. The state’s 35 parks and recreational facilities have a total of 360 employees, an average of just more than 10 positions per facility.

Ledford said each park is unique, and he won’t know staffing levels for Chimney Rock until the long-term operations plan is done.



“Each park is staffed at a level suitable to its acreage, facilities, visitation and programming, and Chimney Rock will be no exception,” Ledford said. “Seasonal employees are often used to supplement permanent staff during the busiest times of the year.”

Morse, the Chimney Rock Co. president, made a point of saying at a press conference and again last week that securing his work force’s future employment with the park is of paramount importance.

Of course, money will come into play, and permanent park funding will come in the state’s 2007-09 budget, when the parks system will request funding for a core state park staff to include a park superintendent and park rangers. Because Chimney Rock is now a private company, Morse did not release budget figures.

Q: What about Chimney Rock’s $14 entrance fee (for adults)? Will it be retained, and how does that compare with other state parks?

A: The only other State Parks & Recreation Division facilities that charge are three reservoirs that have a $5 parking fee. None of the state’s other 29 parks charges a fee, but that doesn’t mean Chimney Rock won’t.

“State parks do charge fees for specific services or activities such as camping, swimming or shelter rental,” Ledford said. “We will develop a fee structure for Chimney Rock that is consistent with state park rules and policies and also addresses Chimney Rock’s unique circumstances.”

Some other state-run facilities do charge fees. Among them:

• The N.C. Arboretum in Bent Creek (run by the University of North Carolina system), charges $6 per vehicle.

• The N.C. Aquariums at Roanoke Island, Pine Knoll Shores and Fort Fisher charge $8 for adults, $6 for children.

Chimney Rock presents a unique argument for a fee. One could help limit visitation.

“One thing people have to be very careful about is not to love a park or a natural area to death,” said Katherine Skinner, executive director of the Nature Conservancy, one of the conservation groups involved in securing land for the Hickory Nut Gorge State Park.

The park has 36 rare plant species and 14 rare animal species, and natural resource specialists have found six separate natural communities. Over-visitation could damage these plants and ecosystems.

Chimney Rock’s visitation, at 250,000 annually, is lower than many state parks, partly a function of the $14 entry fee, partly a function of limited parking. The upper parking lot holds 225 vehicles and the Meadows area 300 to 400.

Q: How does Chimney Rock fit in to the larger Hickory Nut Gorge State Park picture, and what will that park look like?

A: Chimney Rock is a key acquisition because it backs up to the World’s Edge property to its west. With its 315-foot high chimney, 26-story elevator, striking cliff walls and miles of established hiking trails, Chimney Rock undoubtedly will become the park’s main draw.

Ledford noted “a really nice aspect of including Chimney Rock in the park is that we will be able to provide public access and facilities immediately.” Other park areas can’t be opened to the public until they are staffed and the state can provide basic access and sanitation facilities, he said.

Q: What is the plan for the entire park?

A: The idea is to form a giant horseshoe around the gorge, with the two end points near Lake Lure. While The Nature Conservancy and the state have secured large parcels opposite from Chimney Rock on Rumbling Bald and at the gorge’s northern end on Roundtop Mountain and Bat Cave, the horseshoe is not contiguous — and may never be.

“We’re working on it — absolutely we’re working on it,” said Skinner, the director of the Nature Conservancy. “Willing sellers — that’s the key. We are a ‘willing seller, willing buyer’ organization, which means the Nature Conservancy does not have the power to condemn the land. That’s not at all how we do business.”

The Nature Conservancy has helped protect or secured by itself 3,558 acres in the gorge, at a total cost of $19.67 million. But acquiring land is a slow — and sometimes painful — process.

“Some people are like Scarlett O’Hara — they’re as tied to that land as she was to Tara,” Skinner said. “You’ve got people who have an incredible sense of their heritage on these properties. Some other people play, ‘I need the money.’ It’s not nearly as simple as we would like it to be, but it’s very interesting. Particularly up there, there are a lot folks in their retirement, and they want to hold on to their land.”

Q: Will the state use eminent domain or a similar tool to force owners to sell their land for the park?

A: Not likely. Ledford said the park plans call for acquiring land only from willing buyers.

Taking land would be premature, anyway, said Dick Ludington of The Conservation Fund. Completing land acquisitions for large state parks easily can take 20 years or more, he said.

“The state of North Carolina is only in the most extreme circumstances going to consider eminent domain,” Ludington said. “There’s plenty more work to be done before that ever comes into focus – decades of work.”