Ghost Town heir demands financial documents
Oct. 11 – A legal challenge by Ghost Town heiress Jill Holland McClure could halt a Maggie Valley housing development proposed by alleged developer Frankie Wood.
Wood has simultaneously pursued residential and RV developments in Maggie Valley for the past two years while claiming to be the savior of Ghost Town amusement park. The two have tangled as Wood says the development projects are what will raise the capital he needs to pursue the reopening of Ghost Town.
Meanwhile, McClure became a part-owner of the effort as heir to Ghost Town’s former owner, Alaska Presley, who died in April of this year.
Wood and Presley formed a partnership, and upon Presley’s death, his interest in the partnership passed to McClure, his niece. Wood, however, refused to acknowledge McClure’s involvement – who has since been the subject of a lawsuit.
In the lawsuit, McClure claims that Ghost Town in the Sky, LLC and Maggie Valley RV Park, LLC, both managed by Wood through a separate company, Coastal Development, are insolvent.
In addition to his lawsuit asking the court to dissolve the two companies, McClure is seeking a preliminary injunction requesting that a receiver be appointed for the two companies and that financial documents be produced immediately.
When McClure learned of an infrastructure proposal submitted to the town of Maggie Valley for proposed homes on Moody Farm Road, she filed the injunction to gain access to corporate finance. Under the operating agreement, McClure must equally share the debts incurred by the companies.
A preliminary injunction is an action taken by the court to preserve the status quo of the parties during a dispute, the legal document states.
Canton’s Hyatt Pipeline (unrelated to the reporter) provided a detailed cost estimate to the City of Maggie Valley for $578,000 for “Project Wood” on Moody Farm Road.
Maggie Valley City Manager Vickie Best said Public Works Director Mike Mehaffey has approved the Hyatt Pipeline documents and staff are awaiting a bond or letter of credit from a bank before the project can continue.
This is standard procedure for infrastructure projects, Best said, and the bond or letter of credit will need to be approved by the city council. The surety backing the project should be 1.25 times the project quote, she said, or about $722,000.
In a court filing on Oct. 6, McClure claimed she was ‘excluded’ from any decisions made for either company because Wood does not recognize her as a member of the company. , but simply as a “holder of economic interests”.
“Coastal Development’s disregard for McClure’s status as a member and his need for information and access to real property also compels the court to issue a preliminary injunction,” the lawsuit states.
The petition calls for McClure or another party to be appointed as receiver so that all information about the companies and their finances can be protected and made available to members.
According to financial records McClure had before his aunt’s death, Presley was the only member with financial assets in the corporations.
Neither company appears to be operating under the terms of the agreement, the injunction says. In the case of Maggie Valley RV Park, plans have been made to develop properties on Moody Farm Road for permanent housing.
“Coastal Development may transfer any or all of each company’s assets to third parties or otherwise dissipate each company’s assets without McClure having the information necessary to determine the damages and without McClure having the remedies necessary to stop a transfer” , the document states.
The motion for a preliminary injunction follows a lawsuit filed in August by McClure’s attorney, Mary Euler of the law firm McGuire, Wood and Bissett, to dissolve the two companies because each is insolvent.
Wood’s attorney, Russell McLean of Waynesville, successfully moved the case to state court, slated for action in early November, where McLean is seeking a dismissal of Euler’s lawsuit.
No action is planned on Euler’s request for interim relief.