LEXINGTON, Ky. — The fights for and against a proposed resort at the Red River Gorge continue, with one group announcing a campaign to raise $60,000 to hire legal representation and conduct studies to stop the project. 

Red River Gorge United (RRGU), a nonprofit organization created by the community of Slade, Ky., to protect the area from overdevelopment it claims is “out of scale with the region’s infrastructure and capabilities,” called the project a “Gatlinburg-like” development that “threatens the beauty and enjoyment of this world-renown ecological resource.”

The resort was proposed several years ago by Red River Economic Development (RRED), a nonprofit group of Eastern Kentucky businessmen and others to explore development in the Gorge area.

The 800-acre resort would sit mostly on what is now forested and undeveloped land three miles from the Gorge. It includes a five-story, 180-room resort with room rates averaging $350 per night, spa, corporate distillery, two restaurants, café and multiple event spaces. The resort is projected to create nearly 500 jobs in the rural, economically distressed area. 

“RRGU opposes the development for a variety of reasons, including its size, the lack of due diligence, its impact on aging critical infrastructure, erosion of small-town character, degradation of natural resources, increased safety concerns and other negative fallout resulting from over-trafficking by inexperienced visitors,” said Dan Shields, head of communications for RRGU. “The $60,000 fundraising campaign would allow the group to commission studies on environmental impact, infrastructure degradation, flood and erosion control and disruption of ancient burial sites — none of which have been done by the developers.”

Shields said the funding would also allow RRGU to engage legal counsel and conduct more expansive community engagement and communications efforts, including the development of long-term plans to protect and enhance the Slade and Nada communities and exploring the creation of a land trust.

(Red River Economic Development)

“We fully oppose the Slade resort as it is currently conceived, not only because of its scale and scope, but because it risks turning this incredible resource into the next Gatlinburg by attracting other developments that are simply out of character with the area,” said Kristen Wiley, RRGU board president. “It’s a slippery slope. There has been some contention that this area needs the resort to help build its economy and create jobs, but nobody in Slade is asking for this resort. Our local businesses are already struggling to find enough workers. This resort would make that situation dramatically worse. This doesn’t feel like help. It feels like exploitation, and we’re going to do everything in our power to stop it.”

RRGU’s fundraising will focus on the international community of rock climbers, backpackers, campers, and many others, who value Red River Gorge’s unique ecological resources, Shields said. 

"We need to raise funds to protect the region for future generations and ensure it does not develop into something like Gatlinburg,” Shields said.

Dave Adkisson, former president and CEO of the Kentucky Chamber of Commerce, is a founding member of and project manager for RRED. He said in response to RRGU’s fundraising efforts that RRED has welcomed input from various stakeholders throughout the planning process and believes everyone has a right to their own opinions. 

“There is a lot of support for a nature-oriented destination resort in Powell County,” he said. “RRED will continue to work for a high-quality resort that will create hundreds of jobs for the local community and eastern Kentucky and generate millions of dollars in the local economy.”

Powell County Judge Executive James Anderson said the project will bring more economic development to the region for generations to come and stressed Eastern Kentucky needs the jobs.

“It’s really impediment to Eastern Kentucky moving forward historically they’ve seen the folks have to leave to go other places to work,” Powell said. “They’ve been able to retain some of our up and coming talent here and keeping them home, they would have a sense of pride and really going to go forward and start to retain some of our talent and quit exporting it. Projects such as the offers a very viable means to hopefully do that.”

Kirk Gilchrist, an outdoor enthusiast and founder of Red River Gorge Hiking, was once vehemently opposed to the proposed development, but has since changed his mind. He said RRGU’s fundraising effort “will be in vain” and the group is “wasting their time and donated funds.”

“The environmental assessment has already been done,” he said. “It is humorous to me that one of the founders of the group is one of the region's largest profiteers. They have made millions of dollars and built a monopoly empire out there, yet don't want any further competition. I am no longer against the development. It is far too late to ‘Save the Gorge.’ The cat's out of the bag. People are coming and developing either way. There is very little private land left that is not already being developed with rental cabins. The Gorge is being loved to death. What land is left is selling at 10 times its actual value. I own land in three counties there and will probably be the last to own undeveloped property.”

RRED let its right to purchase the property expire on March 31, 2021, but the group said in a statement it plans to continue its efforts to recruit a developer to build a high-end destination resort on the property. A right to purchase is a provision requiring the property owner to give the right to purchase holder, which in this case is RRED, the first chance to buy a property after the owner decides to sell. The purchased land was transferred to a holding group after the right to purchase expred, according to a statement from RRED. 

“Clearly COVID has affected virtually every part of the economy and especially the hospitality industry,” said Charles Beach III, former RRED chair and former mayor of Beattyville. “While a significant rebound has started, we need more time to test the waters with developers and investors for the proposed resort. We’re extremely fortunate that this group of supporters is willing to purchase and hold the property for three years and give us breathing room to pursue a suitable development plan.” 

According to an April 2021 article in the Lexington Herald-Leader, Beach III, CEO of People’s Exchange Bank in Winchester, fellow RRED founding members Elmer Whitaker, CEO of Whitaker Bank, and Adkisson, had become investors in the project, putting up part of $2.25 million to buy the property from businessman Ian Teal as part of the Red River Gorge Holding Company. Beach III and Whitaker subsequently stepped down from the RRED board to avoid the perception of a conflict of interest.