By Maggie Beamguard
Insider Editor
*This story has been updated to reflect new information about the project cost and restricted reserves.
As the Seven Lakes Landowners prepare to vote on a proposed $200 annual dues increase, one significant project continues to surface. The long-anticipated “bottom drain” project is on the horizon. This complex project has a years-in-the-making history.
In 2019, the North Carolina Department of Environmental Quality notified the Seven Lakes Landowners Association that it must install a proper bottom drain. The requirement stems from state dam safety rules enacted in 1978. Lake Sequoia was constructed in 1974.
What began as a straightforward engineering requirement has evolved into a lengthy and expensive process. According to the ad hoc committee overseeing this project, the timeline of has unfolded over seven years:
- 2019 – NCDEQ notifies SLLA that a bottom drain mechanism was required.
- 2019 – NCDEQ notifies SLLA that a bottom drain mechanism was required.
- 2020-2022 – Permit applications cannot be submitted due to Covid restrictions.
- December 2024 – The original permit application is submitted, proposing a 2-3 foot lake drop.
- April 2025 – In the aftermath of Hurricane Helene, NCDEQ notifies SLLA that a 20-foot drop may be required. Sequoia Lake is only 20-25 feet deep in its deepest areas, except near the dam.
- May – The permit request is rejected after approximately 18 months of discussions with NCDEQ.
- June – August – New engineering plans are developed at an additional cost of $15,000.
- December – Revised plans and a new permit application are submitted to NCDEQ.
- Feb. 18, 2026 – NCDEQ approves the permit.
Now that approval is received, the HOA will seek proposals from contractors. The project will likely require multiple vendors to provide the various levels of work related to the overall project. The association’s engineer, Grimes Engineering, will provide oversight but will not perform the construction itself.
Discussions with the state regarding the potential drawdown required for the work have ranged from a three-foot drop to a 20-foot drop. Dropping the lake by 20 feet would effectively drain most of it. The state has indicated it will not require this drastic move.
The difference is significant. A 10-foot drop restricts lake access for everyone and could take four or more years to refill under normal rainfall conditions. A three-foot drop is expected to refill within 12 to 18 months under typical conditions. Drought could extend those timelines; unusually heavy rainfall could shorten them.
Amber Johnson, the SLLA treasurer, believes it’s reasonable to expect that a prolonged and significant drawdown could negatively impact property values across the community, though no formal estimate has been calculated.
The SLLA board is recommending a $200 annual dues increase for the next fiscal year. Johnson said the increase is not solely for covering the costs of the bottom drain project.
According to Johnson, most of the increase will be directed toward a projected $175,000 operating budget shortfall. The rest will go toward additional reserve contributions for capital expenses, including dam-related projects and future infrastructure needs.
If approved, annual dues would increase to $1,600 per property. The increase is not an automatic yearly escalation. The new rate would remain in place unless modified by a future vote.
While technically the current proposed solution resembles a siphon-style spillway design rather than a traditional bottom drain, after years of discussion, the project name has stuck.
Retrofitting a bottom drain presents a huge logistical and financial challenge. Initially estimated to cost around $900,000, cost estimates are now around $3.2 million.
“We know that the more time that has passed, the more expensive this project has gotten,” Johnson said.
“The biggest risk to this community is sustainability,” Johnson said. “Sustainablity is funded through reserves — to be able to have necessary funds available to address capital projects whether that’s repairs, replacement or improvements.”
The board has been building up the restricted reserves by $400,000 a year. One of three reserve accounts, restricted reserves may only legally be used for road construction and state mandated dam repairs.
Like most HOAs, the community receives no county or state funding for upkeep or maintenance.
The vote before homeowners this month is about how and when to fund compliance with the state’s mandate for the dam and broader infrastructure within the 50-year-old community before costs climb higher.
“I am very hopeful that we can cross the last hurdle and get this underway,” said Johnson.
Details on the project are scheduled to be discussed at a Feb. 26 meeting.
Contact Maggie Beamguard at maggie@thepilot.com.
