[Federal Register Volume 68, Number 175 (Wednesday, September 10, 2003)]
[Notices]
[Pages 53421-53424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22989]


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TENNESSEE VALLEY AUTHORITY


Rarity Pointe Commercial Recreation and Residential Development 
on Tellico Reservoir, Loudon and Monroe Counties, TN

AGENCY: Tennessee Valley Authority (TVA).

ACTION: Issuance of record of decision.

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SUMMARY: This notice is provided in accordance with the Council on 
Environmental Quality's regulations (40 CFR parts 1500 to 1508) and 
TVA's procedures implementing the National Environmental Policy Act. 
TVA has decided to implement the preferred alternative identified in 
its Final Environmental Impact Statement (EIS), Rarity Pointe 
Commercial Recreation and Residential Development on Tellico Reservoir.
    In implementing Alternative E, TVA has decided to take several 
actions related to the Rarity Pointe development: (1) Change the land 
use allocation of approximately 116 acres of TVA property following the 
820-foot elevation as marked on the Tellico Reservoir and sell it for 
part of a privately planned residential resort and golf course 
community, (2) authorize the use of about 5 acres of TVA property, 
below the 820-foot elevation for a small (par-3) golf course, (3) 
approve plans for a marina with up to 349 wet and 200 dry storage boat 
slips using approximately 4 acres of TVA land below the 820-foot 
elevation, (4) change the land use allocation of about 17 acres of TVA 
property from natural resource conservation to recreation to allow the 
construction of greenway trailhead facilities and grant the Tellico 
Reservoir Development Agency (TRDA) a permanent easement over the 
property to manage the property for the designated uses, and (5) accept 
the transfer of 256 acres of property, designate this tract for 
recreation and natural resources conservation, and grant the TRDA a 
permanent easement over the property to manage the property for the 
designated uses.

FOR FURTHER INFORMATION CONTACT: Richard L. Toennisson, Senior NEPA 
Specialist, Environmental Policy and Planning, Tennessee Valley 
Authority, 400 West Summit Hill Drive, WT 8C, Knoxville, Tennessee 
37902-1499; telephone (865) 632-8517 or e-mail [email protected].

SUPPLEMENTARY INFORMATION: In May 2002, TVA received a request from LTR 
Properties (Rarity Communities) to make available property under TVA's 
control on Tellico Reservoir in Loudon County, Tennessee, for part of a 
residential resort and golf community that Rarity Communities was 
constructing. Rarity Communities already owned 539 acres of property 
adjacent to the TVA property that it was proceeding to develop. It 
wanted the TVA property to enhance and expand the development. TVA was 
asked to take three actions related to the Rarity Pointe development: 
(1) Release the land use allocations for approximately 116 acres of TVA 
property above the

[[Page 53422]]

820-feet elevation (Parcels 8 and 9) on the Tellico Reservoir from 
recreation and natural resource conservation and sell Rarity 
Communities the property for its planned residential resort and golf 
course community with 1,200 units; (2) approve of the use of about 5 
acres of TVA property, below the 820-foot elevation for a small (par-3) 
golf course; and (3) approve a full service marina using approximately 
4 acres of TVA property with shoreline stabilization, dredge, and up to 
349 wet and 200 dry storage boat slips.
    In August 2000 prior to receiving the Rarity Communities request, 
TVA adopted the preferred alternative in its Tellico Reservoir Land 
Management Plan Final EIS (2000 Land Plan). This plan allocated uses 
for 139 parcels of TVA land totaling 11,150 acres on Tellico Reservoir, 
including all of the TVA land sought by Rarity Communities. The 
allocated uses for the two parcels in the Lower Jackson Bend area 
comprising the 116 acres sought by Rarity Communities--recreation (46 
acres) and natural resource conservation (70 acres)--are not consistent 
with the planned development and have to be changed to permit the 
development to proceed if the property is sold by TVA. Despite the 
conflict with the Year 2000 Land Plan, TVA decided to assess the merits 
of Rarity Communities' request because it was consistent with the 
overall purposes of TVA's Tellico project and would further implement 
that project. The request also was consistent with TVA's statutory 
responsibilities to promote economic development in the Tennessee 
Valley region.
    Although implementation of the Tellico project is exempt from 
environmental review, TVA decided to review the Rarity Communities' 
request under the National Environmental Policy Act. TVA issued a 
Notice of Intent to prepare an Environmental Impact Statement (EIS) or 
an Environmental Assessment (EA) on June 24, 2002. A public scoping 
meeting was held on July 16, 2002, and was attended by over 400 people. 
Because of the degree of public interest, TVA extended the scoping 
period. TVA received over 500 written or oral comments on the proposal 
with the majority of commenters objecting to the transfer of TVA public 
land to a private developer.
    TVA decided to prepare an EIS. A Notice of Availability of the 
Draft EIS was published in the Federal Register on March 28, 2003. 
Following release of the Draft EIS, TVA held a public meeting at 
Loudon, Tennessee, on April 10, 2003, attended by 95 people. TVA 
received approximately 112 sets of written and oral comments during the 
public comment period. The Notice of Availability for the Final EIS was 
published in the Federal Register on June 28, 2003. Appendix B of the 
Final EIS contains summaries of and responses to the comments TVA 
received on the Draft EIS.
    Both the U.S. Army Corps of Engineers (USACE) and the Tellico 
Reservoir Development Agency (TRDA) have proposed actions related to 
the proposal and were cooperating agencies on the EIS. The USACE must 
decide whether to permit construction of marina water use facilities, 
related dredging, and disturbance of wetlands. TRDA has been requested 
to transfer ownership of property currently designated for industrial 
use needed to mitigate the sale of TVA's property to Rarity Communities 
and agree to permanently manage the property for recreation and natural 
resource conservation. In addition, TRDA has agreed to permanently 
manage the 17.6 acres trailhead property for recreation purposes.

Alternatives Considered

    TVA identified five alternatives for responding to Rarity 
Communities' request. Under any alternative, construction and operation 
of a commercial recreation and residential project was expected to 
continue (and is proceeding now) on the 539 acres of private land 
already owned by Rarity Communities.
    Under Alternative A, the No Action Alternative, TVA would not 
approve any of the requested actions and the Year 2000 Land Plan would 
remain unchanged.
    Under Alternative B, the Applicants Proposal, TVA would modify the 
Year 2000 Land Plan and make the requested land available for sale and 
development. TVA would approve the marina plans, and allow the 
construction of the par-3 golf course on TVA land.
    Under Alternative C, the Partial Land Sale with Mitigation 
Alternative, TVA would approve the new marina plans, allow the 
construction of the par-3 golf course on TVA land, and modify the Year 
2000 Land Plan to allow the sale of part of the requested land (about 
49 acres total) for development of an additional larger 
``championship'' golf course, but with enhanced mitigation measures 
including at least a 60 acre land exchange.
    Under Alternative D, the Small Golf Course and Marina with No Land 
Sale Alternative, TVA would approve the marina plans, and allow the 
construction of the par-3 golf course on TVA land, but not make any of 
the requested land available for sale.
    Under Alternative E, the Applicant's Proposal with Mitigation, TVA 
would approve the new marina plans, allow the construction of the par-3 
golf course, and modify the Year 2000 Land Plan to allow the sale of 
the requested land for development as described under Alternative B, 
but with enhanced mitigation measures including a 256 acre land 
exchange.
    TVA identified the Alternative E as the preferred alternative in 
both the Draft EIS and the Final EIS.

Decision

    TVA has decided to implement the preferred alternative identified 
in the Final EIS, Alternative E. TVA has determined that Alternative E 
achieves both Rarity Communities' objectives for the development of a 
high quality residential and recreational community and the regional 
and economic development goals of the Tellico Project in a manner that 
reduces associated environmental impacts to acceptable levels.
    TVA has worked closely with Rarity Communities and TRDA to identify 
and put in place a number of mitigation measures. Of critical 
importance is the Rarity Communities' willingness to provide property 
to offset the loss of the TVA lands and their inherent public values. 
As a consequence, more land and shoreline comes under public ownership 
for recreation and natural resource uses than is lost by the sale of 
the TVA property to Rarity Communities. Under this alternative, Rarity 
Communities also would support development of a greenway trail on the 
eastern shore of the reservoir, thus fulfilling a component of the Year 
2000 Land Plan. TVA is adopting commitments under Alternative E to 
further minimize the potential for adverse impacts to the environment. 
This includes prohibition of docks and other water use facilities on 
the 116 acres to be sold by TVA. As requested by the U.S. Environmental 
Protection Agency (EPA), these commitments are listed below, under the 
Environmental Commitments section. With these mitigation measures, all 
practicable means to avoid or minimize environmental harm would be 
adopted.
    In reaching this decision, TVA has carefully considered the 
comments and concerns voiced by the public. Based on the comments TVA 
received during the EIS and scoping review processes, the primary 
concern to opponents of the proposed action appears to be that 
adjusting the Year 2000 Land Plan to allow the Rarity Communities

[[Page 53423]]

development to expand onto TVA property would set a precedent for 
future deviations from the land plan. TVA does not agree that this 
decision will create a precedent for future decisions leading to 
deviations from the Year 2000 Land Plan and additional environmental 
impacts. Deviations from the Year 2000 Land Plan are completely within 
TVA's control and the decision announced here in no way requires or 
binds TVA to make similar decisions in the future. As EPA noted in its 
comments, flexibility and the ability to adapt to events are the 
hallmarks of good land plans. TVA always maintains the ability to 
modify its reservoir land plans as events dictate, subject to 
appropriate environmental review. As was done here, if TVA receives 
additional requests to deviate from the Year 2000 Land Plan, TVA would 
carefully review the merits of such requests. Only if a request has 
sufficient merit, would TVA undertake a detailed review of the request, 
including appropriate environmental review and stakeholder input. 
Reviews of any such future requests would include an assessment of the 
cumulative impacts of such requests with the Rarity Communities 
development as well as other actions impacting or foreseeably impacting 
Tellico Reservoir and the area.
    As discussed here and in the EIS, TVA agreed to consider the merits 
of Rarity Communities proposal because it is consistent with and 
further implements the overall goals of TVA's Tellico project. However, 
consistency with Tellico project goals likely would not have been 
sufficient for TVA to agree to a deviation from the Year 2000 Land Plan 
so early in the plan's life. Rarity Communities' willingness to offset 
the loss to TVA public land by providing higher quality land elsewhere 
on the reservoir was, as stated above, a critical factor in TVA's 
decision to allow the expansion of Rarity Communities' development onto 
TVA property and to approve Rarity Communities' associated requests. 
This allows TVA to make the decision here that furthers the Tellico 
project's economic development goals while enhancing the Year 2000 Land 
Plan's recreation and natural resource management goals.

Environmentally Preferred Alternative

    Because the Rarity Communities' development would occur and is 
occurring on private land adjacent to the TVA land, none of the 
alternatives, including the no action alternative (Alternative A), 
would be free of environmental impacts. However, TVA's analyses 
indicate that Alternative A would have fewer environmental impacts 
especially to resources on TVA's public lands. On balance, TVA has 
decided that the no action alternative is the environmentally 
preferable alternative. However, of the action alternatives, 
Alternative E has a number of environmentally attractive features and 
in TVA's judgment would have important environmental benefits. These 
include a net gain of accessible public land and shoreline on Tellico 
Reservoir allocated to natural resource conservation and recreation and 
on-site environmental protection measures related to design and 
construction of the Rarity Pointe golf courses, resort housing, marina, 
and other development that would otherwise be foregone. In addition, 
Alternative E would jump-start the development of a greenway trail on 
the eastern shore of the reservoir. The major environmental negative 
feature of Alternative E would be that it could be seen from another 
development on Tellico Reservoir, known as Tellico Village, and would 
therefore have negative visual effects for village residents and lake 
users within that view shed.

Environmental Commitments

    For the reasons discussed in the Final EIS and summarized here, TVA 
is committing to the following measures to avoid, reduce, or mitigate 
the potential environmental impacts associated with these actions:
    [sbull] A vegetated buffer zone of at least 50 feet will be 
retained by TVA and maintained along the shoreline from the summer pool 
level and around the periphery of Parcels 8 and 9 (the land transferred 
by TVA) in order to maintain continuity on the site, and reduce 
possible impacts to water quality and wetlands.
    [sbull] In order to further minimize potential impacts to water 
quality and avoid wildlife exposure to pesticides, Rarity Communities 
will utilize golf course design and management practices approved by 
TVA and included in Tennessee Department of Agriculture guidelines and/
or the certification of the golf courses by Audubon or similar 
organizations that reduce exposure to and impacts from golf course 
maintenance and that provide a method of tracking compliance with this 
commitment.
    [sbull] Rarity Communities will replace forested wildlife habitat 
and recreation land lost from the development of Parcels 8 and 9 
through a land exchange with TVA at the Wildcat Rock site as described 
in Alternative E. TVA and/or TRDA will maintain the acquired parcel for 
public recreation and natural resource management.
    [sbull] Dead trees and mature trees greater than 14 inches in 
diameter will not be cut on any of the lands that comprise the 
development project, especially oaks and hickories with loose, shaggy 
bark, until Indiana bats are not likely to be present (October 15-March 
31).
    [sbull] Fully shielded light fixtures or those with internal low-
glare optics (so no light is emitted from the fixture at angles above 
the horizontal) will be used in the development.
    [sbull] The following commitments are required for dredging 
associated with the marina:
    A. Silt curtains must be placed around the perimeter of the dredge 
area, so as to not allow silt laden water outside the work area.
    B. All saturated spoil will be dewatered using berms, straw bales, 
silt fencing, or other silt control devices positioned in such a way as 
to not allow silt-laden water to re-enter the reservoir. The method of 
dewatering must be approved by TVA.
    C. All dredged material must be removed to an upland site (above 
820-foot elevation) and contained in a manner to prevent its return to 
any water body or wetland, and permanently stabilized to prevent 
erosion.
    [sbull] Rarity Communities will mitigate impacts to wetlands (W4 
and W5) by implementing the wetland mitigation plan in Appendix C of 
the Final EIS. In addition, in response to comments from the FWS, the 
following additional wetland mitigation measures will be established;
    A. The height of the riprap behind the dredge will be no higher 
than the 814-foot elevation.
    B. The marina parking lot will be located no closer to the 
shoreline than 55 feet from the 813-foot contour.
    C. The area between the marina parking lot and shoreline will be 
maintained as a vegetated filter buffer with the larger vegetation 
(trees and shrubs) left in place, the larger vegetation may be side 
pruned.
    [sbull] All of the general and the designated standard conditions 
for Section 26a and Land Use approvals identified in Appendix G of the 
Final EIS are conditions of 26a approval and will be placed in the 26a 
permit, including conditions 6b, 6f, 6g, and 6h, and implemented by 
Rarity Communities on all licensed and leased TVA property. Article 3 
General Provisions, TVA Contract 60000A, will be adopted by Rarity 
Communities and implemented on all former TVA

[[Page 53424]]

property by Rarity Communities and its land owners.
    [sbull] To minimize pollutant loading and prevent spilling fuel or 
wastewater, any fuel storage or dispensing facility located temporarily 
or permanently on development project property will comply with TVA 
Resource Stewardship (TVARS) Guidelines for Storage Tanks (4.5.5), 
including the preparation and implementation of a Spill Prevention and 
Control Plan. A marina sewage pump out station will be installed and 
operated according to TVARS Guidelines 4.5.3, and the marina will 
comply with TVARS Guidelines for Discharges (4.5.1) (See Appendix F of 
the Final EIS).
    [sbull] Rarity Communities will construct a trail terminal on TVA 
Parcel 6 (Parcel 6A), consisting of a paved access road, paved parking 
lot for approximately 18 vehicles, walkways, 6 picnic sites, and 
restroom in accordance with TVA design specifications described Figure 
G-2 in Appendix G, and permit public ingress/egress across Rarity 
Pointe property to access the proposed greenway trail system on TVA's 
adjoining upstream and downstream property.
    [sbull] TVA's deed transferring title of the approximately 116 
acres to Rarity Communities will state that residential access for 
individual water use facilities will not be considered anytime in the 
future by TVA and that individual water use facilities are prohibited.
    [sbull] To prevent an increase in future flood damages:
    A. Rarity Communities and the operator of the marina will securely 
anchor all floating facilities to prevent them from floating free 
during major floods.
    B. Any future facilities or equipment subject to flood damage would 
be located above the TVA Flood Risk Profile elevation of 817.0 feet 
MSL.
    C. Any future development proposed within the limits of the 100-
year floodplain, elevation 816.2 feet MSL, would be consistent with the 
requirements of Executive Order 11988.
    D. All future development would be consistent with the requirements 
of TVA's Flood Control Storage Loss Guideline.
    [sbull] TVA Cultural Resources will review the proposed dredge site 
area during low winter pool, prior to any disturbance, to verify the 
results of a previous archeological survey.
    As appropriate, these commitments will be implemented through the 
documents transferring title to the TVA property, conveying easement 
rights, and/or TVA's approval of development project elements under 
section 26a of the TVA Act and TVA will remain responsible for 
enforcing compliance.

    Dated: September 4, 2003.
Kathryn J. Jackson,
Executive Vice President, River System Operations & Environment.
[FR Doc. 03-22989 Filed 9-9-03; 8:45 am]
BILLING CODE 8120-08-P