Indian Hills center of Eden annexation debate, again

Eden administrators are considering the annexation of a little more than 277 acres southwest of the city limits in an area called Indian Hills, and the neighborhood’s 196 residents would say that history is repeating itself. 

In 2003, Eden tried to annex Indian Hills. Two years later, a lawsuit halted the process, and the move fizzled out in Appeals Court. Technically, neither side won.

Kelly Stultz, director of the Eden Zoning and Planning Department, said a few mistakes in the city’s annexation plan and an agreement reached later than expected was enough for Indian Hills residents to hinge a lawsuit on.

“In the end, the Appeals Court judge ruled that the area was eligible for annexation,” Stultz said.

Water, who provided it, who treated it and who paid for it, is central to the reason Eden believes it has a right to annex Indian Hills and the reason its first attempt stalled.

Because it lies in the county, Indian Hills pays Dan River Water, a nonprofit company, for water and sewer. In turn, Dan River Water buys water and waste treatment from Eden.

Stultz said in the late 1980s, the original developer found the land was not suitable for septic tanks. He approached the Eden City Council, asking permission to connect the development’s sewer line to the city. Though it was never formalized, Stultz said the developer and council agreed he would pay for sewer installation, and the development would later be annexed. The council never said it would cover the developer’s sewer debt if annexed.

“It was a gentleman’s agreement that when the development was running and stable, the city would annex,” Stultz said. “That was the understanding that was left between the developer and the council members. But later, he brought on two other partners, and that’s when things changed.” 

Jimmy Davidson is one of those two developers and also one of the residents who fought annexation last time. He said each resident had his or her own reason for opposing annexation, but his had little to do with his taxes doubling or city codes and regulations.

Just the opposite; Davidson sees the wisdom in Eden’s move to take Indian Hills. Infrastructure exists in most of the area. Davidson said residents are content with sheriff deputy protection. The county built the Leakesville Volunteer Fire Station less than a mile from the development’s entrance. Davidson said there is little residents do not have that the city can offer except a lower water bill and a garbage can.

“I know it’s state law, and the city has the right, but I became a partner out here when there was nothing but vines and brambles,” Davidson said. “I took my bush hog and cut it all down. Me and Buddy Roberts and Ed Gunn, we took out a loan to get sewer in here. All that work and the city can just take it.”

Davidson said he is still paying on that debt, and will continue to pay if the annexation succeeds. The city has no obligation to take over the debt.

Indian Hills resident Jim Kendrick and his wife, Judy, were active fighting the first annexation. The city’s move irked locals because they felt the city singled them out, Kendrick said, having discarded plans to annex other areas because they protested enough that the City Council relented. Indian Hills seemed like the only area that could be taken in without risk.

Kendrick is particularly critical of the money the city claims the residents would save through lower homeowner’s insurance premiums and lower utility rates. Service agreements the city has made with the county and Dan River Water do not save residents money, but make the extra costs harder to see.

“Of course, if we’re annexed, our water and sewer rates will drop. But, then we’ll have to pay both city and county taxes,” Kendrick said. “We’d pay taxes for the city to pay Dan River Water the rate difference in the cost to provide us water and sewer.

Though the city never directly paid for the Indian Hill’s infrastructure, Stultz said its wastewater still goes to the city plant and city tax money paid for improvements to the development’s lines. Eden residents ultimately pay for both.

“Comments were made by council members that annexation would happen, but there was no agreement that we would pay for the sewer cost,” Stultz said.

While the partners have spent a lot of money to make Indian Hills a nice place to live and feel threatened by the city’s plan, she asked if it was fair that Eden taxpayers have alone maintained the wastewater treatment plant or repair the development’s sewer connection.

“And while some think its unfair, annexation by criteria is a state law and it’s there for the good of a municipality,” Stultz said. “In this case, some of the lower-income families in the area will benefit.”

She estimates the drop in utility rates alone will even out the additional city tax. And though the city has cut spending, it may be able to help poor families with failing septic tanks.

“Eden qualified for a grant that would pay to put sewer in for people who can’t afford it,” Stultz said. “For some people in that area, annexation would bring a big benefit.”

There is a chance, however, that Eden’s efforts are in vain. A bill is before the N.C. General Assembly calling for a one-year moratorium on municipal annexation while the state laws on involuntary annexation are revised to be fairer to homeowners.

Meanwhile, Davidson said Indian Hills will wait and think and hope.

“I don’t know if we can really fight it again. We’re looking into it,” Davidson said. “Last time, the city didn’t have all its ducks in a row. But they’re in line this time, and state laws being how they are, (annexation) will probably come.”

• Staff writer Heather J. Smith can be reached at or 623-2155, ext. 15.