About the Issue

What’s happening, and why we’re here:

There is a group called Red River Economic Development (RRED) who proposes building a five-story, 180-room, 4.5 star resort on 891 acres of mostly forested and undeveloped land in Slade, Ky. Learn more about the proposed resort here >>>

The proposed RRED development is guided by a $1 million grant-funded report conducted by Canadian planning firm Stantec in 2020 and has a wide variety of features which RRED are promoting. The original tourism study in 2013, which also guides the project, expressed the intent “To create a tourism destination in Eastern Kentucky, such as a modern, well-planned Gatlinburg…” There is an unclear jump in planning that occurred between this 2013 study, which aimed to replace coal jobs in Eastern Kentucky via tourism, and this 2020 study which aimed to determine feasibility for a “destination resort” in close proximity to the Red River Gorge.

Some links to help you understand the proposed resort project and other elements of the Stantec plan:
View a breakdown of project’s individual parts
View RRGU’s position on each project proposed in study done by Stantec for RRED
View a timeline of the resort project from the beginning
View some important key points about the project
View artist rendering of resort
View a map showing resort location and relative size
View more detailed renderings including Phase 1 and Phase 2 construction, location next to Slade, and floor layout

Resort’s most concerning features
Infrastructure problems
Public input taken only when forced
NO way of enforcing guidelines or recommendations
Background, and how we got here
Replacing coal jobs with tourism
Shifting motives, shifting forces
Misguided incentives
Red River Gatlinburg?
Lofty promises? We’ve heard those before

Some of the features of this proposed resort which are most concerning to our group are listed below:

Building of a themed village where tenant businesses presumably rent from the development owners.
Encouraging the adoption of a logo and brand identity for the area which has already been created by RRED. Presumably, this gives RRED copyright control over the logo and right to charge licensing fees for anyone using the brand.
A $14 million dollar “gateway experience” bridge billed as a “gateway to Eastern Kentucky” that would cross above the Bert T. Combs Mountain Parkway and cut an entrance road up an existing creek to the resort.
- In reality this is just a gateway to the new resort. An alternative access road to the resort already exists and this proposed new road and bridge are unnecessary beyond drawing attention to the resort. The primary justification is to raise the entryway above the 100-year flood plain, but such a project would only be possible at the expense of destroying the existing Timothy Branch Creek. This is described in the report as a “stream restoration” rather than an intrusive and giant construction project.
“A Gaming Option” such a slot machine-like Historical Horse Racing (HHR) machines, or off-track betting was part of the original RRED Concept Paper. RRED claims this has been taken off the table but no laws, restrictions, or regulations currently exist to prevent any developer from adding this to boost revenue after the resort has been built.
180 rooms priced at $350 per night. An early HVS report guiding the project recommended no more than 150-175 rooms to minimize impact on the economy (page 51).
Man-made water features and water-retention ponds on the property large enough for small boats.
Four-season indoor-outdoor water park and pool.
Resort-branded distillery. (We love bourbon too but feel this was tacked on to make the project more palatable rather than being genuine. And a distillery would be in direct competition with another local distillery currently under construction in Slade, Ky).
10,000 square feet of meeting space.
Full-service spa.
Resort-branded restaurant.
No provisions to handle the influx of inexperienced visitors on trails beyond recommending that a new shuttle system could reduce vehicle traffic and parking problems without further info on feasibility or implementation. A shuttle system would only address traffic and parking but would not address foot traffic on trails.
Suggesting that people visiting the new destination resort will want to use newly created trails on the resort property instead of actually visiting and hiking well-known trails in the Gorge. RRGU believes is an unrealistic projection.

A huge number of infrastructure issues exist around the implementation of this development. These include but are not limited to:

Updates and improvements to the wastewater treatment plant, paid for by local tax money.
Updates and improvements to water delivery, paid for by local tax money.
Degradation and destruction of existing roads, parking shoulders, and other public facilities – the repair of which will be paid for by local tax money.

Public input was gathered for the project but only after RRED already had secured funding for a feasibility study which was centered around putting a “destination resort” in the Red River Gorge area.

Plans were not announced to gather public input until after establishment of our group, Red River Gorge United (RRGU), in direct opposition to the project. This “top down” method of operating has been a theme of the project and of the project developers RRED. We at RRGU would like to see more public involvement with any large project that stands to have a significant impact on the region.

Through town halls and meetings of the Local Advisory Board with members of the Stantec and RRED teams there were a number of items added to the report which we at RRGU do support categorically with any new developments to the region.

Those guideline suggestions that RRGU supports are:

Dark Sky lighting certification
No construction within 200 feet of clifflines
Donating any undeveloped property to a conservancy group to be used exclusively for hiking, and remain accessible by public. (It should be pointed out that this suggestion came to RRED from an idea proposed by a member of the Local Advisory Board, and did not come from the goodwill of RRED developers or Stantec directly. Stantec and RRED explored this idea for the study only after receiving the suggestion from locals).
LEED building certification

However, it is extremely important to note that the development group RRED has NO WAY OF FORCING ANY DEVELOPERS TO FOLLOW ANY GUIDELINES.

Both Stantec and RRED have repeatedly emphasized this point in town hall meetings and elsewhere. Without changes to planning and zoning in the four-county Gorge region, developers on private land can construct developments of any large scale or scope without any restrictions whatsoever to stop them.

THIS is why it is so important to encourage local officials in Powell, Lee, Menifee, and Wolfe counties to adopt zoning regulations and protect the integrity of the region’s critical resources for the future.

Here’s some background:

The expressed intent behind the 2013 study was to replace coal jobs in Eastern Kentucky.

From the AECOM tourism study, “In 2012, more than 4,000 coal jobs were lost in Eastern Kentucky… tourism development has been proposed as a way to revitalize and stabilize the regional economy.” But this proposed development is not actually replacing many of those lost coal jobs. So how did we get here?

Collectively Wolfe, Powell, Menifee and Lee counties have lost a total of only 124 jobs since 1988. Meanwhile, Places like Pike County have lost 5,061 jobs, Harlan County has lost 2,966, and Letcher County has lost 2015. Read more about coal jobs in Eastern Ky here >>>
This area is full of successful businesses already, why bring a heavily-subsidized destination resort to a location which is already a destination?
Lots of other areas in Eastern Kentucky would be better suited for this type of development. Unemployment in Eastern Kentucky is generally far worse compared to the four Gorge counties. In April 2021 Powell Co.’s unemployment rate was 3.9 percent – lower than the Ky state average.
Why is this destination resort with its promise of jobs not being located somewhere in Eastern Ky? RRGU suggests moving this project to a city with existing infrastructure capable of handling such a development and amenities such as golf courses for these 4.5-star hotel guests.
The Gorge does not need an additional attractor of tourism. Locals can barely keep up with current demand.
Local businesses are currently unable to retain workers on a consistent basis and many are forced to close in colder months simply because they cannot find employees.

The motives for this project shifted significantly from original intended goals. This resort no longer is replacing coal jobs in Eastern Kentucky, and other areas in this region would be much better suited for this type of development. What is really pushing this project forward now?

Questionable motives exist with this project.

David Adkisson led this project to gather more than one million dollars of public money for studies and reports while he was the head of the Kentucky Chamber of Commerce – but now Mr. Atkinson has become an investor in the proposed resort property and stands to profit personally when/if the land is sold to developers.
- In April 2021 the RRED board had two members leave (along with Adkinson) to join in becoming landholders for the project.
The current board of RRED consists of four men who are bank chairmen, another business owner, and the four judge executives from the local counties. But information about the search for developers and investors is generally not treated with full transparency.
Majority of smaller business owners in region are opposing this development, but bankers are in favor.
Smaller local business owners not contacted for any local input until establishment of RRG United in direct opposition. RRED was not even made public until 2019.

Intentions of this RRED group and preceding groups which have been steering this project are clearly not taking into account the desires or concerns of the local residents and business owners.

Public input has been limited and was only welcomed after establishment RRGU in opposition to the project.
“Local Advisory Board” was not created out of goodwill, the advisory board was established only AFTER RRGU was established in direct opposition to the project.
RRGU initially established January 2, 2020. Local Advisory Board announced January 17, 2020

Red River Gatlinburg?

Recommendation from 2013 study commissioned by Kentucky Chamber which guides RRED recommends, “To create a tourism destination in Eastern Kentucky, such as a modern, well-planned Gatlinburg…” This has unfortunately contributed the project being misguided and led RRED away from the realistic wants and needs of the region.

#1 Response from town-hall meetings was that nobody wants anything that resembles Gatlinburg.
Public opinion was clearly in opposition to the concept RRED had been pursuing up to that point.
Project leaders should have pulled back and done full re-evaluation at that point, but pushed forward against will of residents.
Even the misguided RRED “Gorge Brand Narrative” document states, “No one wants the area to turn into an over-commercialized tourist destination similar to the Gatlinburg/Pigeon Forge area in Tennessee.”

Reality almost always falls short of promises, and there are some extremely lofty expectations set with this resort

300+ new jobs touted, 500+ total claimed when including peripheral jobs such as plumbers, mechanics, etc., but how many of these jobs will ACTUALLY go to Powell, Menifee, Lee or Wolfe county residents?
- 30+ minute drive to resort location from most of Menifee County and outer edges of other Gorge-bordering counties. From most of Eastern Kentucky the resort is one-plus hour drive minimum, so how can many Eastern Kentuckians afford to commute that distance five days per week for $33K/year jobs?
Expenses such as gas, vehicle maintenance, lost time are significant negative factors for any potential employees in Eastern Kentucky.
A worry is that many jobs will go unfilled, so the resort will likely turn to H1b visa employees INSTEAD of hiring employees from Powell, Wolfe, Lee or Menifee Counties.
These jobs aren’t replacing any coal jobs lost in Eastern Kentucky since these four counties have only lost 124 coal jobs since 1988. Powell County’s employment rate was 3.9 percent in April 2021. Why isn’t this job creator being located in an Eastern Kentucky county that needs it?
Unrealistic expectations such as 70 percent year-round occupancy rate after three years(RRED Preliminary Opportunities Report page 221)
Big promises have been made about construction practices and limitations on design, but with no way to enforce these suggestions via zoning developers will be free pivot to less-friendly sources for increasing revenue when visitors numbers don’t live up to expectations
Gambling or betting options were part of original planning thought RRED claims those plans have been taken off the table. However, there are no guarantees that it won’t be added to the project after it’s complete.
IF this project were to go forward RRGU would need restrictions in place to ensure this would never turn into a gaming establishment or casino.
Cutbacks on most expensive but most important aspects of development likely as soon as developer has budget issues. No limitations or restrictions from zoning at this time.
Nothing currently exists to prevent this or force developer to work within recommendations.
Report notes there are no wastewater mitigation restrictions in place in Powell County.

How to get involved
View all of RRGU’s positions on all RRED’s proposed projects
How did we get here? View a full project timeline here
More about coal jobs in Eastern Ky