Maggie developer makes headway; bids on distillery

Jun. 12—MAGGIE VALLEY — As the owner of Haywood's only distillery navigates the complicated world of foreclosure, he's hopeful one particular investor group will prevail in what's turned out to be a lively bidding war for the property at 3732 Soco Road.

Elevated Mountain Distilling took a major hit during Covid when capacity was tamped down and owner David Angel switched to producing hand sanitizer, which was in great demand at the time.

The business was seeing a comeback as a music and event venue, he said, but the losses during the pandemic, along with the supply chain problems proved too much to combat.

First Citizens Bank & Trust filed a civil action against Elevated Mountain Management Group, LLC, Elevated Mountain Distilling Company, LLC and David Angel to collect an outstanding balance of nearly $1.2 million.

In accordance with the foreclosure summary judgment signed on May 11, the music events could only continue through June 5, and the property was put up for bid on May 24. The upset bid process continues until a 10-day period passes without an upset bid.

The venue could still return in its previous form, Angel said, if Micheaux Resource Management LLC is the successful bidder.

That's the company he and developer Frankie Wood have been working with to buy the 10,000 square-foot warehouse located on 1.45 acres out of foreclosure. The personal property such as equipment, furniture and merchandise is not included in the foreclosure sale, but will be sold separately to satisfy the bank debt.

"Micheaux Resources is helping us try to get things back," Angel said. "Frankie Wood signed on behalf of his company. These are the people I support and believe in."

Wood is a developer who has been working with certain property owners in Maggie on annexation and zoning issues, including Ghost Town in the Sky, LLC, where he is the managing member.

Should Micheaux Resources prevail in the bidding process, Angel said he and Jessica Neuharth, who has been working with him since opening the business, would still be involved.

"We're known for bringing musicians and partnering with nonprofits to support the community," Angel said. "I'm hoping we can continue to do that."

Because Elevated Mountain went into default, the new business will need different owners and a different name.

"Our hope and plan is to come back as another distillery with a different structure and organization that we'd be a big part of," Angel said.

To date, four bidders not including the bank, have stepped up to secure the property being auctioned off as result of the court order secured by First Citizens Bank.

The bank kicked off the bidding process at $364,450, which is close to the price of the property in 2016 when Angel purchased it.

On May 31, Kenneth Wells of Maggie Valley bid $383,197, followed by a bid from Back Porch Beverage Co. in Canton of $402,357.

Micheaux's bud came in on June 7 at $422,357, and the following day, Marle Cahill of Florida bid $450,000 for the property.

Each time a new bid is submitted within 10 days of the previous one, it starts another 10-day bidding process.

Numerous projects in the works

While Angel is hoping Haywood's first modern distillery saga will end as a "comeback story" where Micheaux's bid ultimately prevails, there's much to consider.

"At some point, everybody in a bid war has to decide where it makes sense," Angel said. "Could you build a nicer building somewhere else and with less money?"

Another consideration is the Maggie Valley economy, which has long been one where business owners hope to make enough money during spring, summer and fall to survive another winter, Angel said.

"The economy in Maggie Valley is not strong and is not sustainable for most businesses to survive year around," he said.

The Micheaux bid on Elevated Mountain isn't the only new development associated with properties Wood is helping develop in Maggie.

In December 2021, Micheaux Resource Management and CF Master Limited Partnership jointly 204 acres of land behind the Econo Lodge in Waynesville for $872,500. CF Master Limited Partnership is a Monroe-based LLC, with David Cuthbertson as the registered agent.

Cuthbertson is the chairman of American Bank in Monroe, and Wes Hinson, a Monroe attorney and vice chairman of the American Bank, is the registered agent for Micheaux.

Wood earlier said the property was being eyed as housing for the employees needed at Ghost Town in the Sky. This week, Angel, who is a spokesperson for the Ghost Town partnership, said the Waynesville property will likely be high-end residences.

"Ghost Town has a lot of facets," Angel explained. "We're looking at the entire project to see the best place to start. For now these other projects are taking priority."

In addition, two parcels owned by the Day family that Wood shepherded through the zoning process and were the subject of well-attended and intense planning/aldermen board meetings, were purchased on June 3 by Sunset Apartments, a Monroe-based LLC. The deeds on both properties list the same P.O. Box in Monroe as Micheaux Resource Management LLC.

One parcel at 219 Campbell Creek (commonly known as Pioneer Village) sold for $1.2 million, while an adjoining property at 217 Campbell Creek sold for $585,000. The properties are currently accessed by Rocky Top Road and Campbell Creek Road and abut Kamp & Country.

The market values listed in the Haywood County tax office as of the latest appraisal were $728,700 and $343,900 respectively.

Wood had been working with the Day family for the better part of a year to get a high-density zoning designation on both properties. While the larger parcel with six-plus acres, was zoned R-2, the new Unified Development Ordinance approved by the board brought it to R-3, the highest density designation.

That means the larger parcel can have up to 30 single family residences or 61 multi-family dwelling units. The Pioneer Village parcel, which currently has 12 cabins on it, can have a total of 13 single family residences or 27 multi-family dwelling units.