August 2006 Mountains & Mole Hills Will Old King Coal prove a good neighbor for Michael Ross and Rarity Mountain By Sara C. Shoemaker
Could Michael Ross’ good luck streak in selecting land for his Rarity Communities be ending as he moves into Tennessee’s coal country?
Rarity Mountain, his latest endeavor, is a $500 million golf course, residential and retail center sprawling across 5,000 acres along the east side of Interstate 75 near Jellico. The upscale crown jewel surrounded by Campbell County’s most picturesque terrain fits in with other Rarity models sprinkled across East Tennessee geared toward the aging baby boomer market. Many investors bank on Ross’ reputation and buy blind.
While construction awaits, the nearby coal resurgence continues to heat up led by Knoxville-based National Coal Corp. The vast majority of the company’s blasting and strip-mining operations occur west of I-75, yet National Coal’s aggressive growth strategy could mean a future of potential property damage or views of bald mountaintops for Rarity dwellers.
This is a risk Ross is willing to take.
“Because of the way that site is located, I’m not really concerned about [the effects of mining activities]. There are many protections in place to keep the natural look of the land. We just need to be vigilant to see that the laws are followed,” he says.
Coal companies are required to inform residents within a half-mile radius when blasting will occur.
“[We] think the ‘safe zones’ are too narrow. It’s hard to tell how far those waves are going to travel,” says Cathie Bird, who serves as strip-mine issues chairperson for environmental watchdog organization, Save Our Cumberland Mountains (SOCM).
Ross is a SOCM member, and Bird hopes his influence will help the group gain traction on furthering its missions.
He also has a business history with National Coal’s legal counsel Charles Kite, who was part of Ross’ capital investment team pooling funds together for his first Rarity venture. Kite doesn’t think Rarity Mountain residents will need to worry about National Coal’s operations interfering with their post-career lives and adds that the one mine closest to the Rarity site “wouldn’t be a strip-mining situation.”
Only 1,000 acres of Rarity Mountain will be built out. The remaining 4,000 of green space could be enough to buffer against possible damage. Ross may have pre-protected his mountain resort, but it may be an eye- and ear-opening experience to those who probably should visit before they buy.
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