The Gun Barrel City Council approved a letter of intent Oct. 27 for the Economic Development Corp. to purchase real estate identified only as Project Lake at an unspecified price.
The project was recently revealed in a report by the Athens Daily Review to be Big Chief Lodging, which now includes a restaurant, motel and marina.
Mayor Pro Tem Rob Rea and EDC President Steven Schiff told the Review's reporter Kathi Nailling that the EDC would buy the property with the help of financing from Southside Bank in Gun Barrel City. They characterized the negotiation of the purchase as evidence of a new era of cooperative effort between the council and EDC, which previously clashed on several new projects.
The council unanimously approved Project Lake.
The council previously discussed the possibility of purchasing the property for public use, but it became a reality when the trustees overseeing the property substantially reduced the price, according to the Review report.
Planning on how the property will be used is still underway, but the construction of a large civic center is being discussed in addition to the public use of the boat ramp and surrounding land for picnics. The existing buildings and docks would be demolished, according to that plan.
The purchase amount has not yet been revealed. When the property first went on the market about four years ago the sale price was listed at $2.4 million
The EDC will be required to post a public announcement and give citizens 60 days to comment on the proposed purchase.
Big Chief, the oldest business on Cedar Creek Lake in continuous operation, was offered for sale at auction in Feb. 2013.
The auction of the business, which was built in 1966 immediately following the construction of the man-made water reservoir, failed to produce new operators, and it has sat idle ever since.
The business' appraised value was $584,000, with the land valued at $257,000 and the improvements at $327,000, according to the Henderson County Appraisal District. It sits on the edge of Highway 334 at the end of the Causeway that separates Seven Points and Gun Barrel City in an area that is zoned for the sale of alcoholic beverages.
Big Chief is known for being one of the deepest marinas and most easily accessed boat ramp on the lake It consists of a 1,250-square-foot bait shop and store, a 900-square-foot live storage building with circulation pumps, a 4,800-square-foot, two-story motel with 10 rooms and a 5,400-square-foot restaurant with a 1,000-gallon grease trap. It includes a 24-hour, credit card-pay gasoline pump on the dock. The operation sits on 1.639 acres where there is room for expansion.
