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September 03, 2010

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Resorts owners cope with negative publicity

Spring City's resorts and marinas have suffered after the widespread publicity of the Dec. 2008 coal ash spill at TVA's plant in Kingston, Tenn.
Published: 4:53 PM, 01/19/2010 Last updated: 9:58 AM, 07/08/2010
 

Author: Elisabeth Hollingsworth
Source: The Herald-News

It almost goes without saying that the December 2008 environmental spill at TVA's Kingston coal plant, which dumped more than a billion gallons of coal ash into the Emory and Clinch Rivers, has put many small businesses, namely nearby resorts and marinas, on shaky footing.

Roane County suffered the most extensive damage, but Rhea County resorts and marinas have not come away unscathed by speculation and the widespread media coverage.

Some businesses have suffered greater losses than others, but most agree on the common frustration of not yet knowing what to tell their customers.

Sandy Podbielski, owner of Rhea Harbor Resort and Marina, said loyal customers who often travel from out of state were concerned when they heard about the spill through the extensive media coverage.

"When the media refers to the spill, it's all lumped together into 'Watts Bar Lake,'" said Podbielski. "So people in Indiana or Ohio hear that, and assume that conditions on the entire lake are as messy as at the spill site."  

As it is, no visible evidence of the spill seems to be showing up in the Rhea County waters, but conclusive evidence as to any unseen contamination in the water has not been determined.

 "We're 40 miles away from the spill site, but until someone can tell me, I can't [assure them there's nothing wrong with the water]" she said. "I just don't know. Show me the facts."

Podbielski says she is anxious for the media hype to die down, though.

"Until you can tell me something's in this water, just shut up about it," she said with a laugh.

"People are freaking out," she said. "If I know something's wrong [with the water], I'll fight tooth and nail to get it fixed, but prove to me it's wrong first."

Podbielski stated that if authorities could officially confirm that TVA's spill had contaminated the waters around her marina, then she would seek compensation money.

 "There's all this conflicting information on the water quality," said Louanne Bennett, owner of Arrowhead Resort for 22 years. "It seems like there's another article [speculating on the water quality] every other week. I can't promise my customers the water's fine because I don't know that, but they can read the same information I'm reading."

For business owners like Bennett and her husband, much is at stake.

"This was our retirement," said Bennett. "We have devoted ourselves to building up a clientele, and honestly, we have had some of the same customers for three and four generations."

According to Bennett, families who have consistently reserved multiple rooms for annual summer vacations might choose to try out other nearby resorts. And since families vacation together, if one family decides to pick a different place to stay, most of the other families will often follow.

"Last year we lost over two full weeks in July," Bennett said. "It's hard to win people back. Plus, a lot of other lakes and resorts have done a lot of advertising and use the word 'pristine' about 25 times [to highlight their 'cleaner' water]. I don't have the resources to combat that type of advertising."

Bennett said she is considering asking TVA for compensation, but is waiting until she can compile an accurate picture of the business's financial losses.

"I'm worried that if I get anything from TVA, that may be all I'll ever qualify for," she said. "Plus, TVA's looking for black and white numbers showing what I've lost in reservations, but I can't show how much I've lost in property value. Someone would be a fool to buy a business on Watt's Bar lake right now, but TVA doesn't seem to see that as a loss."

Bennett hopes that if Rhea County does procure any money from TVA, they'll make it a point to channel the money toward the tourist businesses that have been directly hit.

"I think it'd be a good thing to put money toward tourism in the county," Bennett said.

Podbielski's concerns for her own business go beyond any harm caused by the spill.  She said it would be years before anyone will know exactly what factors are most to blame for the loss of business.

"The coal ash publicity hurts, but there are other factors as well," Podbielski said. "The 5 percent hotel/motel tax [added onto the 9.75 percent sales tax] is hurting hotels and resorts more than any coal ash.

"Our business has dropped because of that tax and customers have complained," she said. "When you come to this area you're paying 14.75 percent on $100. Would you keep coming if you had to pay that?"

Rhea County Executive Billy Ray Patton has stated he has no plans to lower the local hotel/motel tax.

"That's not going to happen," Patton said. "I don't believe for one minute that the tax has affected anyone's business on the lake."

Regardless of where resort owners are feeling the biggest strain, all have been placed in a precarious position and will have no choice but to wait things out.

"It's very frustrating to be sitting here wondering what's going to happen," said Bennett. "It can feel like you've been kicked in the tail."

Elisabeth Hollingsworth can be reached at elisabeth.hollingsworth@rheaheraldnews.com. 

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