NORTH CAROLINA GENERAL ASSEMBLY
HOUSE BILL 588
AN ACT TO AUTHORIZE THE TOWN OF LAKE LURE TO ISSUE REVENUE BONDS UNDER THE REVENUE BOND ACT OF ONE THOUSAND NINE HUNDRED AND THIRTY‑EIGHT TO ACQUIRE THE LAKE, TRUNK SEWERAGE LINE, DAM AND ELECTRIC POWER GENERATING PLANT AND ANCILLARY FACILITIES LOCATED NEAR SAID TOWN, DECLARING SUCH FACILITIES TO BE UNDERTAKINGS WITHIN SAID ACT, GRANTNG THE TOWN ALL OF THE POWERS UNDER SAID ACT WITH RESPECT TO SUCH UNDERTAKINGS AND DECLARING ANY SUCH ACQUISITION AND BOND ISSUANCE TO BE FOR PROPER PUBLIC AND MUNICIPAL PURPOSES.
The General Assembly of North Carolina do enact:
Section 1. It is hereby determined and declared:
(a) That the Town of Lake Lure, a municipal corporation in Rutherford County, is centered around the privately owned lake known as Lake Lure and that the town and surrounding area are primarily resort and recreational in nature.
(b) That the very existence of the town depends upon the continued availability of the lake and its advantages to the residents of the town and to those who come to the town as temporary residents for recreational purposes.
(c) That many homes are located on the shores of the lake and have docks and boathouses but the deeds to such homes convey no right to use Lake Lure and the docks and boathouses are subject to removal upon the request of the private owner of the lake.
(d) That the owner of the lake also owns a trunk sewerage line, dam and electric power generating plant and ancillary facilities, all of the power produced by said plant being sold under a long‑term contract to a single utility.
(e) That as a practical matter the ownership of the lake, trunk sewerage line, dam and electric power generating plant and ancillary facilities must remain in the same party since the spilling of the lake waters over the dam supplies the power to operate the generating plant.
(f) That for many years the private owner of the lake has leased it to the town on a year to year basis but has now indicated a desire to sell the lake, trunk sewerage line, dam and electric power generating plant and ancillary facilities.
(g) That the ownership of Lake Lure by any private party having the right to regulate the level of the lake in order to increase the energy output of the generating plant or to operate the lake as a private resort area to the exclusion of the present home owners in the town poses a threat to the continued existence of the town and its orderly growth as a resort area.
Sec. 2. The Town of Lake Lure is hereby authorized to issue revenue bonds under and pursuant to the provisions of the Revenue Bond Act of 1938 for the purpose of acquiring the lake, trunk sewerage line, dam and electric power generating plant and ancillary facilities mentioned in Section 1 of this Act or any one or more thereof.
Sec. 3. Said lake, trunk sewerage line, dam and electric power generating plant and ancillary facilities are hereby declared to be, jointly and severally, undertakings within the meaning of said Revenue Bond Act and, as to any such undertaking, the Town of Lake Lure shall have all of the powers provided for in said Revenue Bond Act including but without limitation the power to operate said electric power generating plant and sell all of the power produced thereby to a single utility, to lease said plant to any private person, firm or corporation under such terms and conditions and for such period or periods as the governing body of the town shall deem to be in the best interests of the town and to pledge the proceeds of any such lease to the payment of revenue bonds.
Sec. 4. The acquisition by the town of said lake, trunk sewerage line, dam and electric power generating plant and ancillary facilities and the issuance of revenue bonds therefor are hereby declared to be proper public and municipal purposes.
Sec. 5. The powers granted by this Act are in addition to and not in substitution for any other powers heretofore or hereafter granted to the Town of Lake Lure.
Sec. 6. All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.
Sec. 7. This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 15th day of May, 1963.