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County finishing up Seven Falls plans

Henderson County officials are guardedly optimistic that a developer could come forward to rescue the Seven Falls development. Legal questions over ownership could complicate the scenario and nearly $6 million worth of work remains before any takeover could happen.

County Attorney Russ Burrell and civil engineer Bill Lapsley, a county commissioner-elect who is closing out his work on the Seven Falls property in a county-awarded contract, said they are close to completing a plan to install infrastructure. Once that work gets done, the property could have more appeal to a developer who would resurrect the project, possibly in a scaled down version.
Planned as the biggest subdivision in Henderson County history, the $1 billion development of a golf course, homes and condos failed in 2008. Developer Keith Vinson is in federal custody awaiting sentencing after his conviction on fraud charges in connection with the development.
"We're in the process of planning improvements that would be paid for out of the remaining funds" from a bond the developer's insurance company paid, Lapsley said. He said he wanted to get the plans completed so it can be offered for bid later this month or early September.
"They have about $5½ million left so we're looking at water lines and sewer system and finishing the roads and that's about it — just all the basic improvements promised to the lot owners," Lapsley said. "There's no question it will make it better but I still feel like it's going to take more than $5½ million to do it. The problem is certain items were not included" in work the bond guaranteed. For instance, the bond did not cover the cost of extending electric lines to the site or environmental permitting.
Lapsley said two developers have inquired about the project.
"The two that have been nosing around have had experience in this type of development and have done others," he said. "They have followed the Seven Falls story and they've been to the property and they like it, and they think they could turn around and sell it."
A sale would be complicated for a variety of reasons. Lot ownership is unclear, given the number of straw buyers federal prosecutors say Vinson used as he was trying to prop up the failing project.
Henderson County, as the recipient of the bond money, is in what Burrell describes as uncharted territory.
"There's nothing in the law about how we're supposed to go about this," he said. "We're making it up as we go along."
The county received a judge's approval to stabilize the property and prevent further erosion. The next step will be announcing a proposed infrastructure improvement plan.
"We'll present it to all the property owners and then they will have the opportunity to comment on it," Burrell said. "If they have their own plans, they can present their own plans. It would not truly shock me that if some other property owner comes in and says, 'Wait, I want a chance to come up with my own plan, give me three months,' the judge might well say 'Yes.'
"I'm going to say, 'Judge, you do whatever you think is best to make the best subdivision for these folks that have bought lots in the subdivision."
"I'm not in a situation where I have a profit motive, that I need to get this thing built so I can sell my lot to make my money," Burrell added. "We're not exactly a traditional developer here. It's a little different for us. It's going to be a matter of trying to get the best plan to get as much of what they were promised by Keith Vinson as possible to these property owners."
The county could shave off a lot of cost by eliminating a large bridge that is part of the original plans.
"One of those bridges if we cut it out, not only do we cut out the expense of building a really big bridge, we cut out a stream crossing, maybe in a way that cuts out the Corps of Engineers from having such a big problem with this project," he said.
Environmental concerns from regulators tend to cost a develop a large amount of money either in mitigation or in construction to lessen damage.
The Hendersonville Lightning reported in October that the value of the property had plunged from $56 million in 2010 to $11 million in 2011. Lots had dropped in value from more than $100,000 to $30,000 or $40,000.