The Matthews County Board of Supervisors opened a public hearing July 17 on whether to sell or otherwise dispose of the structure known locally as the Hole in the Wall waterfront restaurant at 384 Old Ferry Road.

The hearing followed months of dispute between the county and the tenant, Michael Cassell, over invoices for rent, pump-and-haul septic reimbursements and flood-insurance costs, and after public commenters raised concerns about structural and septic system problems, past deed history and possible forged permit signatures connected to renovations.

Why it matters: The property sits on Gwynns Island and has been the focus of litigation and administrative disputes dating to a quick-claim deed and sale the county described as occurring for $30,000 decades earlier. Neighbors, the tenant and county staff disagree about what the county told the tenant and about whether proper invoices were issued before the county moved to terminate the lease; those disagreements affect decisions about repair costs, environmental risk and whether to sell the structure or the underlying parcel.

Most of the public commenters urged the county to preserve public water access. Jeff Baldrige, a longtime resident, told the board he opposed selling any portion of the parcel and said he had seen no structural damage when the last tenant removed items in 2016. "I believe raising this building was beneficial, but not necessary to continue operating the restaurant," Baldrige said. He urged a referendum if the county considered selling the parcel.

Several commenters detailed alleged septic failures and repeated pump-and-haul discharges into local waterways. Paul Gibson, who submitted written comments, wrote that the septic "cannot support the stress of a fully operational kitchen and restaurant facilities" and urged the county to convert the site to a public boat ramp with ample parking.

County staff and the accounting analyst presented a timeline of billing and correspondence. Staff said multiple invoicesfor pump-and-haul reimbursement, flood-insurance reimbursement and an adjusted rent amount based on the leasewere emailed or otherwise provided in early June, and that the tenant paid the amounts listed on the June 2 statement the same day by a single check. The accounting analyst said she conveyed to the board that a full response to the tenants June 3 questions would come by June 20 but that staff was later told to hold off at the county attorneys direction.

Board members discussed legal limits on selling county property and the scope of the public hearing. A county attorney advised that state law requires a public hearing before a board can commit to selling real property, and the hearing was framed as whether to sell the structure at 384 Old Ferry Street or any combination of structure and land. Some supervisors repeatedly emphasized that the motion on the floor pertained to the structure only, while other supervisors said citizens could comment on the full parcel during the hearing.

Attorney Matt Jenkins, speaking as a private citizen, urged the board to review the leasewhich he said contains a tenant right of first refusal and a $126,000 purchase credit that could limit other purchasers while the lease remains in effect. Jenkins also said a termination of the lease may require notice of default and a 30-day cure period before a termination is effective.

Board deliberations emphasized deferred action pending related legal and factual matters. Several supervisors said they were not prepared to decide on any sale and suggested waiting for an October court hearing on the merits of the tenant dispute; one board member estimated that continuing pump-and-haul costs could reach about $400,000 over eight years under current trends. Others proposed immediate remediation: replacing failed septic tanks, repairing water infiltration to reduce recurring pump-and-haul expense, and seeking specific cost estimates for those repairs.

The public hearing record included written comments raising concerns about possible forged signatures on prior building permit applications and contractor licensing issues tied to C.W. Hudgens. County staff presented an e-mailed claim from an owner at 410 South Union that the signature on a previously submitted zoning application was not theirs, and the county confirmed it is looking into those allegations for potential referral to law enforcement; the board later considered, but did not adopt at that meeting, a separate resolution to publicize alleged permit irregularities.

No formal action to sell or transfer the property was taken at the July 17 meeting. The board held the hearing, accepted public comment, and directed staff to obtain further information about septic repair costs, legal status of the lease and any pending litigation. Several supervisors said they preferred to wait for the court to resolve the lease existence and related matters before final decisions on sale or marketing of the property.

For now, the countys options under discussion include contracting to market the structure, replacing the septic tanks and re-listing the structure for lease if the county retains ownership, or pursuing sale of some interest only after clearing legal and procedural requirements. The board did not set a timeline for next steps before the meeting adjourned.