Lawsuit finally settles who hold Ghost Town's reins

May 22—A protracted legal battle for control of the long-defunct Ghost Town in the Sky Amusement Park in Maggie Valley has reached a conclusion — and it didn't go so well for the niece and heiress of the late Alaska Presley, the former Ghost Town owner.

After 18 months of legal volleys, a state business court judge has dismissed Jill McClure's lawsuit to dissolve Ghost Town in the Sky, LLC. The verdict leaves managing partner Frankie Wood with almost complete authority to manage any future developments on Buck Mountain in Maggie Valley.

Presley, a champion of Maggie Valley throughout her life, rescued Ghost Town out of bankruptcy in the mid-2010s, hoping to reopen it. Multiple entities claiming to be Ghost Town's savior had failed over the previous 15 years, but if anyone could do it, it would be Presley, who had the wealth and means.

However, she passed away two years ago at the age of 98 before realizing that dream. During her final years, she forged a partnership with Frankie Wood, who promised to bring financial backers to the table to help Presley.

Presley left a 50% stake in Ghost Town to her niece, Jill McClure, and 50% remained with an LLC managed by Wood.

McClure soon sued, claiming she was being shut out by Wood, that the equal 50-50 ownership had resulted in deadlock and that Ghost Town was going nowhere — calling for the dissolution of the LLC and sale of the property.

However, N.C. Business Court Judge Adam Conrad hung his decision on Presley naming Wood a managing partner.

That authority includes day-to-day management responsibilities but requires McClure's support for "extraordinary acts such as declaring bankruptcy or disposing of all company assets."

Those types of decisions would require consent from McClure.

McClure said the opinion makes it clear she has a limited voice to guide management of the LLC under the existing operating agreement.

"The only thing he needs my approval for is to sell any of the property, add new partners, put liens on property, things like that," she said.

In his court affidavit, Wood said he was willing to work with McClure on further development of the property.

"I have no problems whatsoever working with Jill McClure if necessary to move the project forward and operate the company as the operating agreement says," according to Wood's testimony.

Wood's attorney, Russell McLean, said the court ruling was what he anticipated all along.

"Simply because you're fussing with the management partner and don't like the fact he is the managing partner is no grounds to dissolve an LLC," McLean said. "The judge agreed and dismissed the case with prejudice, which means the specific claim can never be brought up again."

McClure said she is disappointed, but hopes Wood will start having monthly meetings and provide updates as to what's happening.

"I guess we'll be business partners," McClure said. "I'm moving forward with a positive attitude. It's not the situation I hoped for, but I'm hoping Frankie will do what I expect of him as a partner."

While initial plans and early publicity focused on plans to redevelop the Ghost Town property as an amusement park, Judge Conrad wrote that the broadly defined operating agreement allowed for multiple development options.

"Ghost Town in the Sky is doing just that by owning and managing the amusement park remnants and surrounding acreage," Conrad wrote. "There is no doubt that McClure mistrusts Coastal Development and would remove it as managing member if she could."

What's next

Now that the lawsuit is settled, McLean said development plans for Buck Mountain can resume. That includes meeting with Storyland Studios, a company that had earlier outlined plans to redevelop an amusement park in Maggie Valley.

McLean stressed he merely handled this lawsuit and that future actions will be up to the managing member of Ghost Town in the Sky, which is Coastal Development, LLC and Frankie Wood.

"The lawsuit slammed the brakes on this. Now we can move forward," he said.

McLean said the development investors were confidential, and were "very, very good people." For an idea of what could happen next, he suggested reading a court affidavit from Matt Ferguson — the chief innovation officer with Storyland who lives part-time in Maggie Valley and helped open Route 19 Inn there.

In the affidavit, Ferguson hinted at plans involving an unnamed deep-pocketed backer. Ferguson said he was in a meeting where a Charlotte-area real estate investor committed to invest nearly $80 million to complete the theme park.

Ferguson said he was of the opinion that once the lawsuit was over the stakeholders would be willing to re-engage to move forward.

The Wood affidavit stated the project would supply a significant number of jobs and bring substantial revenue to the area.

The lawsuit

McClure's lawsuit, filed by her attorney Mary Euler, explained the partnership forged between Presley and Wood — and how McClure fit in following her aunt's death.

When Presley created Ghost Town LLC, she contributed property consisting of Ghost Town and 250 acres on Buck Mountain. Wood was named the managing partner and was to provide cash, financing and labor for development.

The documents stated McClure was to inherit all her aunt's duties as a corporation member and outlined McClure's early efforts to obtain access to the property, receive an accounting of how money had been spent and make sure bills were paid.

In the lawsuit to dissolve the corporation, McClure alleged Wood had breached his fiduciary responsibilities, thus putting her half-interest in the corporation at risk.

However, Judge Conrad stated there was no reason to dissolve the corporation due to any deadlock because Wood could call the shots and operate the corporation as per the operating agreement signed by himself and Presley other than in what was termed "exceptional circumstances."

"Her dissenting views, no matter how entrenched, cannot lead to deadlock because managerial authority lies exclusively with Coastal Development (Wood's LLC)," Conrad wrote.

Wood's affidavit indicated the lawsuit was only filed after negotiations with McClure to sell her share of the corporation broke down. Wood affirmed he offered to pay $4 million for the property, but said McClure wanted $6 million.

Initially, McLean argued McClure was a mere economic interest holder, not a member.

As part of the proceeding, Judge Conrad ruled McClure was a member and established that Ghost Town in the Sky would treat her as such.

McLean said the judge's ruling on McClure's membership was inconsequential.

"It was an arguable point, but didn't hold water," he said. "But that wasn't a critical difference. The judge defined it quite well, and we agreed with his ruling."

While there were flurries of motions after the August 2022 lawsuit filing, Conrad wrote that nearly all the arguments centered on "it is or isn't practicable for Ghost Town in the Sky to conduct its business in conformance with its operating agreement."

In ruling Wood has unilateral authority to manage as he desired, McClure's claim that the partners were deadlocked became moot.

Wood could not be reached by press deadline.