T.V.A. FONTANA PROJECT & NATIONAL PARK PROJECT

As a part of TVA's unified development of the Tennessee River, construction of the Fontana Great Dam Project in Swain County began on January 1, 1942. While the project has provide flood control for and generated hydroelectricity to be utilized by Tennessee, its negative effects on Swain County are still being felt some 60 years later, Swain County receive no power from TVA. First, over 68,000 acres of land were acquired for all purposes in relation to the Fontana Project and lost from Swain County's tax rolls and almost half of Swain County Jobs lost. About 9,700 acre, 14.5% of the total, was cleared land, most of which was agricultural land farmed by relatively small operation. A major protion of North Carolina State Highway No. 288 leading from Bryson City to eastern Tennessee was submerged when the reservoir was filled, and at that time it was estimated to cost at least $1,700,000.00 to build a road of the same character above reservoir level.

In recognition of the loss of productive farmland, the loss of a major road, and in acknowledgement that approximately 43,000 acres of Swain County land (which were not flooded rendered inaccessible by the flooding of North Carolina Highway 288) purchased by TVA from private owners and transferred to the National Park Service, the "1943 Agreement" was entered into by the affected parties. The contract signed by the Tennessee Valley Authority, the Department of Interior (National Park Service), the State of North Carolina and Swain County provide, in part, as follows:

The Tennessee Valley Authority would purchase the 43,000 acres and transfer them to the National Park Service, then the Park Service would construct the road called for in the 1943 agreement.

TVA and the State of North Carolina would pay to Swain County the market value of outstanding bonds against North Carolina State Highway 288.

When funds became available, the Department of Interior, as part of its Master Plan, would construct an "around the Park" road which would include the "North Shore" Road as a replacement for the inundated North Carolina Highway 288, following the Northern Shore of Fontana Lake from Bryson City to eastern Tennessee border.

North Carolina State Highway 288 was built in the early 1920'S by the Forney Creek Road District from the proceeds of bond issues totaling $600,000.00. In August, 1940 Swain County assumed the outstanding principal of $456,000 together with accrued interest of $235,000. According to a former Swain County official, $400,000 was ransferred from TVA to the State of North Carolina but not used to pay off the road bonds. Swain County made final payment in 1975 for the road which had been submerged for over 30 years.

THE DEALS GAP BRYSON CITY SECTION IS AN IMPORTANT LINK IN THE "AROUND THE PARK" ROAD AND IS PART OF THE MASTER PLAN FOR THE DEVELOPMENT OF THE GREAT SMOKY MOUNTAINS NATIONAL PARK. THE NATIONAL PARK SERVICE WILL INTITIATE CONSTRUCTION OF THAT PORTION WITHIN THE PARK AS SOON AFTER THE WAR AS FUNDS ARE MADE AVAILABLE. THE NATIONAL PARK SERVICE WILL AGREE TO USE ALL DILIGENT EFFORTS AFTER THE WAR TO SECURE FUNDS AND AUTHORITY FROM CONGRESS TO BUILD A PARK ROAD FROM THE LANDS CREEK BOUNDARY OF THE PARK IN THE VICINITY OF BRYSON CITY TO CONNECT WITH THE TVA ACCESS ROAD IN THE VICINITY OF FONTANA DAM AND WILL AGREE THAT THIS ROAD WILL BE ONE OF THEIR EARLY PARK ROAD PROJECTS.