Town Council

nixes Elk Motel

sewer plan
By Frank Ruggiero
ruggiero@wataugademocrat.com

COMMENT ON THIS ARTICLE
The Elk could be back on the endangered species list.

Following closed session at last Thursday’s regular Boone Town Council meeting, council members unanimously agreed to rescind a contract to help furnish sewer for the Elk Motel, placing the entire project cost on owner Floyd “Dipper” Garrison.

The decision came after an emotional statement from Garrison, who operates the motel as affordable housing for low-income and transient individuals.

Council member Liz Aycock moved to rescind the contract on grounds that Garrison failed to provide relevant financial data, indicating a 80/20-percent debt-income ratio, and was seconded by mayor pro tem Lynne Mason.

In early 2007, Garrison approached the council for help in replacing a leaking septic system, saying he could not afford the project on his own without raising rent, which would contradict the motel’s purpose.

Considering the case a hardship, the council agreed to extend a sewer line to the Elk Motel, located just outside town corporate limits on U.S. 321, provided the $300,000 cost be split evenly in three between the town, county and Garrison.

When the council disagreed with the county’s counter-proposal last October, council members agreed that the town would shoulder two-thirds of the cost and Garrison the remaining third. Through community fundraising efforts, about $48,000 was raised to supplement Garrison’s portion.

When the council learned of Garrison’s property holdings in Watauga County, which number 17, according to the county tax listings, and amount to more than $3.4 million in value, Garrison was asked to provide data indicating he had a debt-income ratio of 80 and 20 percent, respectively.

At the meeting, Garrison said he’s provided the council with more than enough information, against the counsel of his attorney and accountant, and, “The only reason I did it was because I’m so desperate to have sewer line run out there.”

Garrison said the ordeal has taught him two definitions of affordable housing – his for people who make less than $10,000 a year and the town’s for those who earn less than $40,000.

“If you’d told me from day one you weren’t interested in doing this for any reason, I wouldn’t be here now,” he said.

Mason said there was no question about the necessity of an extension, but that the matter was funding. “And as an elected official, I must be a good steward of all public funds, and when we entered into this agreement with you, it was with the understanding there was a financial need for us to get involved, otherwise you wouldn’t be able to secure your own funding,” she said.

Part of the approval was contingent upon Garrison’s disclosure of financial information, during which the council learned of the $3.4 million property value. Garrison countered that he never said he was poor, nor a nonprofit organization, and that he offered much more than money when he agreed to maintain the motel in its current use for the next 10 years, which was a condition of the agreement.

“That 10-year commitment I made to you all is worth more than anything I’ve got,” he said, explaining that he has numerous mortgages on the property and that 14 houses of the 17 properties listed were purchased over the last 30 to serve as extensions of the motel as a sort of transitional housing.

“I worked 12 hours a day, six days a week for the last 30 years, and I put in $250,000 of money to buy those 14 houses,” Garrison said.

“I have $250,000 in those houses. I struggle half the year trying to pay my property taxes. I’m paying 10 times the value.”

Garrison told how he visited Mason’s office, after hearing of the council’s request for additional financial information, and dropped to his knees and begged her to personally look at “these million dollar houses” and meet their tenants.

He said Mason instead suggested he sell some of the houses.

“I love Lynne, I think she does a great job at the Hospitality House,” Garrison said, referring to Mason’s position as executive director of the homeless shelter and service agency, “and I know that in her heart she must be thinking she’s doing the right thing here. The only other thing I can come up with is that Lynne loves homeless people so much she wants to make more of them.”

Council member Stephen Phillips urged Garrison not to make the matter personal with Mason.

Garrison replied, saying, “If I’m a little upset, it’s because I’m frustrated, I’m irritated, I’m tired out and worn out… I tried to get you the information, I’ve given the information we’ve gone over. To answer your question … I don’t have 20 (percent debt). I’m glad I don’t, because if I did, I wouldn’t have kept the motel going the last year.

“How many people do you think would carry that motel and 20 more houses out here that are just like that motel … I keep that going. I don’t have some magic money pot out here; I don’t have any grants; I don’t have anybody helping me. I have my own self.”

Aycock said the money for which Garrison was asking is taxpayers’ money, “and you’re asking for it to be used for a for-profit enterprise. It’s a private entity asking for public funds; it’s not a nonprofit.”

“All I wanted was the sewer running out there, so I could keep it going,” Garrison said. “If you’re not going to do it, I’m not going to fight you any more.”

Council member Janet Pepin said that while she appreciated Garrison’s verbal information, she must deal with what’s in writing, especially when it concerns financial matters.

“When I first heard you…I first heard this was a hardship case,” she said.

“It was very surprising for me, personally, to find out how much real estate you owned. That shook me up, because I sat here thinking that someone with those kinds of assets could get a loan to pay for this, just like any other business in the community.

“There is no question you have a hardship for sewer; there is no question the tenants in your building are actually in need of housing. That’s not the question for me. The question for me is the financial hardship.”

A second motion from Aycock saw approval of sewer extension to the Elk Motel, provided Garrison cover the entire cost, and was seconded by Mason for unanimous approval.

“It’s beyond hardship, and I don’t expect them to understand,” Garrison said after the meeting. “I went in … realizing it was over. I realized that when they started talking about my worth … unless you know me or really knew the inside story, would you really want to give anybody money?”

As for the motel’s fate, Garrison said it may be in the hands of a higher power.

“Hopefully, if the Lord wants to keep it going, we’ll keep it going without a sewer system,” he said. “But realistically, it’s just going to be a matter of time.”

In the meantime, Garrison said he has instructed tenants to cut down on water usage, while also canceling the laundry service.

“I hope for the people living there that it goes on for a while anyway,” he said of the motel. “Maybe someone else will come up with something, but I don’t know.”