Revenue drop could endanger funding for Whalehead Club

The Whalehead Club expects a drop in admissions and event revenues of more than $100,000, leading the county to question whether the attraction is popular enough for close to $1 million in additional funding from occupancy taxes.

During this budget year, which ends June 30, the 84-year-old tourist site expects to earn $377,580 in revenue while also getting an $825,000 share of county occupancy taxes. A separate one-time share of $100,000 in occupancy tax revenue this fiscal year went toward looking into a dredging project near the club.

For the next budget year, site officials forecast revenue to fall to $258,746 and have asked for an occupancy tax share of $900,000, which would represent an increase over the current year, when the money for the dredging study is not included.

"The biggest question is why is this happening," said Vance Aydlett, a Currituck commissioner who was recently appointed to the Whalehead Preservation Trust board. "What do we need to do to enhance the experience at The Whalehead Club to draw more visitors there?"

Currituck County officials are in the midst of establishing a budget for the next two years.

"Let's go back and see what it actually takes to operate it," said Currituck Commissioner John Rorer. "The county needs to determine whether The Whalehead Club can get to a self-sustaining position."

The Whalehead Club draws about 20,000 visitors a year. The nearby Outer Banks Center for Wildlife Education run by the state draws about 100,000 visitors annually, as does the Currituck Beach Lighthouse run by the nonprofit Outer Banks Conservationists, said County Manager Dan Scanlon. All three are part of Currituck Heritage Park.

The Whalehead Club was bought and restored largely by county occupancy taxes during the 1990s and early 2000s. At the time, a quarter of approximately $4 million collected annually was mandated to go toward renovating and running the mansion. In 2005, the county was allowed to raise the tax to 6 percent from 4 percent, and the mandate to The Whalehead Club was eliminated. But the county continued to fund the site, in most years at nearly the same amount. "We can't guarantee that number will be that number anymore," Scanlon said.

Mandated for tourism-related expenses, occupancy tax revenues are in high demand. The county is considering construction of a bike path costing more than $1 million. The Corolla Wild Horse Fund has asked for $100,000 next year, up from $55,000 this year.

The county sets aside occupancy tax revenues each year to go toward a $24 million recreation center. Law enforcement and fire protection get nearly $1 million each annually to boost summer protection in Corolla.

Dennis Anderson, creator of the Grave Digger monster truck and a Currituck County resident, has proposed a county fair much like the one he put on last year and has asked the county to contribute $35,000.

Occupancy tax revenues are expected to reach $8.6 million by the end of the budget year on June 30, said Sandra Hill, director of the Currituck County finance department. Projections for next year have those tax revenues falling to $8.2 million.

At The Whalehead Club, revenue forecasts show tour admissions would drop from $110,000 this year to $76,000 next year. Museum shop sales are expected to fall from $30,000 to $20,000. Money earned from weddings held on the grounds is predicted to decline from $60,000 to $35,000. There are several other sources of income.

Lower forecasts are based on the economy, said Edna Baden, executive director of the Whalehead Preservation Trust.

"We tried to be extremely conservative," Baden said. "We're hearing conflicting reports about whether people are coming or not."

Northern businessman Edward C. Knight Jr. and his wife Marie Louise LaBel completed construction of the 21,000-square-foot mansion in 1925. The couple moved into the home on the Currituck Sound and pursued a love for waterfowl hunting, often inviting friends to join them. Local hunting guides and others were employed there.

In 1940, Ray Adams bought the home and property and called it The Whalehead Club. Over the years, the site served as a school for boys and as a testing area for rocket fuel for the space program.

In the 1970s and 1980s, part of The Whalehead Club tract was developed. Meanwhile, the mansion itself fell into disrepair.

In 1992, the county bought the house and 39 acres, began restoration, and later opened it for tours and events.

Jeff Hampton, (252) 338-0159, jeff.hampton@pilotonline.com