The sprawling two-story retail building at 10 Brook St. in historic Biltmore Village was built in 2007 specifically to withstand flooding, with the remnants of 2004’s Hurricane Frances still fresh in memory.

The first level is a parking garage, cleverly disguised on the front by the village’s hallmark building material, pebbledash, and large grates designed to allow water to move beneath the building without harming the upper structure. The retail shops are a good 8 feet above ground.

They still flooded during Tropical Storm Helene. 

The storm, which dumped catastrophic amounts of rain upstream in the Swannanoa River Valley, swelled the river to a flood stage of 27.33 feet, leaving most of Biltmore Village underwater.

The building was home to multiple chain retail stores, including Williams Sonoma, Talbot’s, and Chico’s, as well as one locally owned one. All flooded and lost merchandise.

The water line stands about six feet up the windows. On the back of the building, it’s more than 25 feet. In December, like most of the flooded businesses that remain standing in Biltmore Village, the shops were gutted down to the studs.

“And as you can see here, the water has managed to find its way into a double pane glass, and this is roughly 85 days later,” said Benjamin Mitchell, vice president of administration for Biltmore Property Group, in late December. “I would imagine that they’ll just replace the storefront glass.”

Across Biltmore Village, one of the most Helene-devastated neighborhoods in Asheville, owners of businesses large and small are weighing whether they’ll return. Many plan to return but face an arduous, uncertain path to recovery. Some told Asheville Watchdog that they are in limbo, waiting to see if and how they can rebuild, and what regulations the city of Asheville may impose. Additionally, they need to untangle insurance payouts and potential financing.

It appears most businesses plan to come back, Mitchell and other members of the Historic Biltmore Village Association said. The good news, Mitchell said, is that, “I have no indication that we’re losing any of the national tenants as a result of the storm.”

Mitchell, also president of the board of the Historic Biltmore Village Association, said his company operates the Lily Pulitzer store and the JW Bell’s men’s shop, which they’ll also bring back.

“I think we’re a scrappy bunch, right?” Mitchell said. 

But his optimism is tempered by multiple unknowns.

“I think there’s still just a lot of uncertainty among business owners, in general, with what the city will or won’t let us do,” said Scott Shealy, whose company owns the Citi Stop gas station and the adjacent Long John Silver’s building in the village.  

Throughout the area, property owners have to adhere to state rules and building codes, including the “50 percent rule.” That states that if a building in a flood zone sustains damage that’s more than 50 percent of its market value before the storm, it’s deemed “substantially damaged” and when rebuilt has to comply with current standards, which can require elevating the structure.

The state Department of Public Safety’s National Flood Information Center page notes that such buildings “must be brought fully into compliance with the local flood damage prevention ordinance. The repair plans and permits should reflect this. Buildings with less than 50 percent damage can be issued permits to repair.”

Asheville Mayor Esther Manheimer, who is also an attorney who works on land use issues, said she’s well aware of the confusion surrounding rebuilding in the business community, including Biltmore Village.

“Obviously, we hope that all the businesses in Biltmore Village are able to survive through this period and rebuild and reopen,” Manheimer said. “I think that’s going to be critical for Asheville’s recovery, and we’re doing all we can as a city to try to support that. We do have to, of course, operate under the state building code.”

The topic of rebuilding in flood zones was on the City Council’s agenda for its Jan. 14 meeting, Manheimer noted. Council held a public hearing and considered proposed text amendments to the city’s Unified Development Ordinance “to make clarifications and align local regulations with state requirements.”

“Current language in the UDO about repair and replacement of buildings in the floodplain is unclear, leaving the potential for confusion about the requirements for properties identified as having been substantially damaged,” the agenda item notes. The modifications will “ensure the city remains in good standing with the National Flood Insurance Program and the Community Rating System.”

After hearing from several property owners and developers, including Mitchell, who expressed concerns about continuing confusion over the amendments, Council decided unanimously to postpone voting on the amendments until their Jan. 28 meeting.

The NFIP provides federally backed flood insurance for property owners.

The Council of Independent Business Owners in Asheville will meet Friday at UNC Asheville, with Asheville Assistant City Manager Ben Woody tackling the topic of rebuilding in flood zones and giving an update on flood recovery. Interim Executive Director Patty Beaver said CIBO has heard from business owners throughout the city, including Biltmore Village, expressing concern and confusion about rebuilding.

‘The good news is that I think most businesses are coming back’

Built by George Vanderbilt in the 1890s to house workers at his nearby Biltmore Estate, Biltmore Village comprises a dozen or so blocks of shops, restaurants, and other businesses, including the Grand Bohemian Hotel. Historically, the centerpiece of the village is the Cathedral of All Souls, which also took on water and is undergoing repairs.

Vanessa Salomo, chief operating officer and co-owner of Corner Kitchen restaurant, is also on the Historic Biltmore Village Association Board, which represents about 40 businesses.

“The good news is that I think most businesses are coming back, from what I’ve heard,” Salomo said.

Kara Irani, director of public relations for the association, said the number of businesses that have committed to reopening is “a moving target right now,” although she, too, believes most will return.

“Some weeks I talk to folks, and they just think it’s not even going to be possible,” Irani said. “And then some weeks, I look at their social media feed and they say, ‘We’re going to come back.’”

Some, including Well-Bred Bakery & Cafe and the Cantina at Historic Biltmore Village, have said they will not return. 

Sherrye Coggiola, who ran Cantina with her husband Anthony and their daughter Sydney for  15 years, said the decision was agonizing, but the financial realities were too overwhelming.

The restaurant was flooded to the ceiling, leaving it with about a $1.5 million loss. Cantina drew about $3 million annually in business, but without income, flood insurance, or help from the government so far, rebuilding was not an option.

“I would love for you to share how heartbroken we are on every level for our guests and for ourselves and for our staff,” Coggiola said. 

Well-Bred, located at 6 Boston Way, is also permanently closed, owner Judy Glicken said. The flood wiped everything out – losses totaled at least $300,000 – and the restaurant, which opened in 2014, lacked flood insurance.

The risk was just too great for Glicken.

“And that’s why we wouldn’t open down there, because it’s been 20 years, but maybe next time it’s only going to be 10,” Glicken said. “It’s going to happen again. It’s just a question of time.”

Irani said many merchants are awaiting financing, working out issues with insurance companies, and nailing down the cost of restoration. Some can offer an online store or pop-up locations to help generate revenues, but others do not.

Salomo runs Corner Kitchen with her husband, Joe Scully, and third partner Kevin Westmoreland, and they also operate Chestnut restaurant downtown, so that helps with income.

Corner Kitchen inhabits an 1895 building at Boston Way and All Souls Crescent. Its first floor was under 12 feet of water, so it’s been gutted to the studs, much as it was after the 2004 flood. But Salomo is undeterred.

“Corner Kitchen’s coming back,” Salomo said. 

They hope to reopen for Easter weekend, but Salomo acknowledges May or June is probably more realistic. 

Matthew Lehman, general manager of the Grand Bohemian Hotel, a village mainstay since 2008, said the hotel plans to reopen in May. Damage was extensive, “with the entirety of the ground floor destroyed, along with damage to our utility services and other infrastructure.”

“While we are fully insured, as has been the case with so many of our neighbors, the extent of the damage far exceeds any coverage available,” Lehman said via email.

In the village’s older buildings, renovations have to meet the city’s Historic Resources Commission’s standards, which can add time and expense. Corner Kitchen hopes to tap into a federal Small Business Administration loan and possibly grants, but those aren’t in play yet.

On a fast food note, fans of McDonald’s and Hardee’s in Biltmore Village can look forward to their eventual return. Both establishments have put in permit applications with the city to renovate.

‘Blown out is a good term for it’

Neal Reed is director of operations at New Morning Gallery at 7 Boston Way and the Bellagio Art to Wear store around the corner at 1 Kitchin Place. New Morning, located in a building erected in 2000, with parking on the first floor, was spared major damage upstairs.

But Bellagio, housed at street level in a building dating to the 1920s, did not fare so well. It flooded to the ceiling. 

“Bellagio was basically destroyed,” Reed said. “We lost 100 percent of the inventory. Blown out is a good term for it.”

Reed said they’re lucky to have an entrance to get upstairs to work on New Morning, which they hope to reopen by spring, although like Salomo, he acknowledges that is “a moving target.

The looming work at Bellagio’s ground level is even more daunting. 

The businesses had flood insurance, but Reed said that caps out at $500,000 per structure, “and we will be well beyond that.”

“We did have flood insurance, but it’s an old number, based on 1980s statistics,” Reed said, like Mitchell noting that the federal flood insurance program needs to update its property value assessments. “We had a small amount of content coverage, but it will come nowhere close to covering it.”

Financially, they’re looking at all options right now, Reed said, noting that Biltmore Village  business owners run the gamut from those that are “highly capitalized,” such as the Grand Bohemian Hotel, part of the Kessler Collection company, and Biltmore Property Group, which owns buildings in five states.

“Some are basically without insurance and will have to find a way. They may have to sell property and never will be able to rebuild,” Reed said, noting that those with loans and mortgages will have to decide how long they can go without sales revenue. “I think it’s going to be different for everyone.”

A year from now, or maybe even five years, Reed suspects Biltmore Village will look considerably different than it did the day before Helene.

Still, Reed remains upbeat.

“We will see a substantial number of businesses return,” Reed said. “The general feeling is —  especially with the ones who’ve been there a long time — it’s their living, their staff, their commitment to the long-term, to being able to thrive, to be an economic driver for the City of Asheville.”

Some workers have left the area for other opportunities, a phenomenon not limited to Biltmore Village.

But Salomo said Corner Kitchen is pleased that most of its 115 employees will return.

“I can’t even…it brings tears to my eyes,” Salomo said.

Besides red tape and financing, she said, the biggest hurdle is making it through the first quarter, always a slow time.

“I think quarter one of 2025 is looming very heavily for folks,” Irani, the PR director, said.

Refusing to fail, and wanting to pass a business on to the kids

It certainly is for Sam Souhail, owner of Casablanca Cigar Bar, located at 18 Lodge St. in a building that flooded to the roof. Souhail bought the property a decade ago, and behad full insurance coverage before the COVID-19 pandemic.

“I had the whole nine yards covered prior to COVID — I got flood insurance and inventory, the equipment, the building, like over a million dollars,” Souhail said. “And when COVID hit, you try to shave as much as possible so you can survive like anybody else, right?”

He did keep flood insurance.

“Without flood insurance on the building, we are not having this conversation right now,” Souhail said, noting he’ll get a “couple hundred thousand” from insurance. Repairs will cost at least $500,000, and Souhail lost about $250,000 in inventory and equipment.

He and his wife, Brooke, will likely take out more loans, possibly even using their house as collateral, to make up the difference between the insurance payout and repair costs.

The Souhails own a small bodega in downtown Asheville, and a second Casablanca cigar bar in Hendersonville. Souhail is making sure those businesses are generating as much revenue as possible before he turns his attention to the Biltmore Village location.

“Our intention is definitely to rebuild in Biltmore Village,” Souhail said. “This is our flagship, and that was our start.”

He had not paid off the Biltmore Village building, so adding another loan will sting. But he’s positive he’ll recoup the lost revenue and the expense of rebuilding. 

Souhail knows Biltmore Village is flood-prone. Casablanca had water inside on two other occasions over the past decade. He says he’ll definitely spend the money on flood prevention walls.

“This is hopefully a business that I can pass on to my kids, and they take it to the next level,” Souhail said. “I have three kids, and I don’t want them to think of Daddy when things get tough, just pack and go — you gotta face the consequences. This is life, and how do you say it? It’s not fair sometimes.”

A lot of unknowns

The devastation is most evident on Biltmore Avenue just north of the historic section. Several fast food or casual dining establishments were ripped open and remain exposed. While a Wendy’s restaurant already has been torn down and the Asaka restaurant has taken out a partial demolition permit with the city, others remain.

Shealy, who is president of Citizens Fuel Co., which operates local gas stations, also is a manager of Superior Properties of Asheville, LLC, which owns the Citi Stop and Long John Silver’s buildings. The convenience store and restaurant were run by lessees.

Both properties, close to the Swannanoa River, sustained considerable damage.

“We intend to rebuild,” Shealy said. “We still don’t entirely understand what the process will be with the city.”

Both properties were built on elevated sites in the early 2000s to meet code requirements that would theoretically put them out of harm’s way for a 100-year flood, Shealy said, so neither carried flood insurance. He thinks they should be able to rebuild, as they did not flood in 2004 or in a smaller subsequent flood.

They plan to reopen the Citi Stop but Shealy said Long John Silver’s will “in all likelihood be converted to a different use and/or tenant.”

Shealy said he can’t give a timetable, but he thinks it’ll “certainly be more than three months,” as they “need clarity” from the city.

Cynthia Suits Woolley, whose LLC owns the building that housed Moe’s Southwest Grill, next to the river, also said she’s encountered “a lot of unknowns” from the city and her insurance company.

The building was heavily flooded, and the interior remains exposed.

“My decision on whether I’ll be able to rebuild is going to be determined by the amount that I get back from my flood insurance — which fortunately I did have flood insurance — but I haven’t spoken with them in over a month,” Woolley said.

She also has to determine if her tenant wants to return, and the potential cost of rebuilding.

Her parents bought the property in 1975 when it was a Pizza Hut, and she inherited it in 2014 when her father died.

“If the restrictions and regulations aren’t too tough, and if it wouldn’t be astronomically expensive to rebuild, I definitely would want to rebuild,” Woolley said. 

The Antique Tobacco Barn took a similar shellacking. But co-owner John Pomeroy says it hopes to reopen in March.

The business is awaiting an answer from NCDOT on when Swannanoa River Road will reopen, and on Duke Energy to restore electricity to the building. 

Insurance shows the building took a $2.4 million loss, Pomeroy said, and about 15,000 of the structure’s 70,000 square feet had to be “deleted” because of serious damage. The owners plan to bring in bathrooms on a mobile trailer and identified repairs to beams that can be addressed relatively quickly. The exterior’s missing metal sheathing can go in quickly, too, Pomeroy said.

They’re determined to come back, even though the building is just a stone’s throw to the north of the Swannanoa. Pomeroy knows antiques dealers and buyers love the space.

“If the dealers didn’t want to come back, I might be fine to sell it and build apartments or a hotel there or something,” Pomeroy said. 

He’s banking that Helene is a once-in-a-lifetime event, or even longer.

Around the region, he says, folks are filling up their basements and garages with items they want to sell, and they’re ready to get back to work.

“I think beyond, obviously, the initial tragedy of loss of life and property and personal possessions, job No. 1 at this point is the economic recovery of the area,” Pomeroy said. “And we’re going to put 70 to 100 people back to work.”

Asheville Watchdog is a nonprofit news team producing stories that matter to Asheville and Buncombe County. John Boyle has been covering Asheville and surrounding communities since the 20th century. You can reach him at (828) 337-0941, or via email at jboyle@avlwatchdog.org. The Watchdog’s local reporting is made possible by donations from the community. To show your support for this vital public service go to avlwatchdog.org/support-our-publication/.

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