I am really honored to be a regular columnist for Lake Magazine. They asked me to write about the future of Lake Martin and the new Federal Energy Regulatory Commission (FERC) license. To read the article on their site Click Here, or feel free to read:
The wait is over. We knew it was coming. That was made clear back in April of 2015, but until we got the real copy of the FERC license in our (digital) hands, we did not dare strut too much. Now we know the reality – for the next 30 years, as long as the Lord God sends enough rain, Lake Martin will only drop 7 feet in the winter as opposed to 10. Plus, we will have a chance to keep the tub full until Oct. 15 instead of pulling the plug after Labor Day.
We at Lake Martin can now settle back and confidently plan how the next 30 years will be. 30 years! That’s practically a generation. I think the best way to consider this new license is to think about its long-term effects – effects that will come to bloom and blossom over a generation. As I have written previously, the new rule curve will only serve to improve Lake Martin and therefore our entire community and economy. This help, I think, seems pretty obvious to anyone that scans the new license. For an article from the Alabama Power Company Shorelines blog about the new license click here.
As I review the new FERC license, the first thing to grab my attention was a mention of those previous. The original one for Martin Dam started in 1923 and lasted 50 years. The next period was a 40-year license that started in 1973. So we are starting only our third license. Martin Dam 3.0. When you put it like that, it makes the lake seem pretty young, but in reality, radical change has come here since the start of our last license in 1973.
Looking at the big picture, I would say that the biggest change agent since 1973 was the development of private property. Prior to 1973, there weren’t many places on Lake Martin where you could own your own lot and home. Think about it – Russell Lands, the lake’s largest private landowner and developer, had only recently started Willow Point, its first venture. Alabama Power, the other big landowner, had sold very few, if any, lots. In the 1970s, if you had a cabin on Lake Martin, most likely it was the short-term rental of an Old Testament Russell Cabin or you owned your home but leased the lot from Alabama Power.
When you’re a renter, or at least a quasi-renter, there is little or no economic incentive to improve it.
As ownership spread in the 1980s and 1990s, so did the by products of ownership – stores, phone lines, garbage service and Internet. In the 2000s, it just kept going to include issues like environmental advocacy. Do you care as much about the water quality of a place that you rent casually? Or do you really start paying attention when you are an owner?
What new factor will play a big role in the next 30 years? It is hard for me to say. If I were forced to guess I would say it will be the rise of the Lake Martin investor. An investor can be someone that rents the property 100 percent of the time, or maybe a minority of the time. Yes, there are some owners that rent their properties out right now, but not that many when you compare us to the beach, etc. Why?
I think it is because of the relative novelty of the Lake Martin home ownership support industry. I don’t think this is an actual term, so I will try to define what I am saying.
As uptown as Lake Martin has become in the last 15 years, we are still in our infancy of companies that help one own a home, condo or lot here. Remember that about 80 percent of waterfront homeowners are not living here full time. In other second home markets, like the beach or the mountains, there are plenty of companies that will do more than just come by and cut your grass. There are entire businesses dedicated to concierge services, such as checking on your home’s condition every couple of weeks, or helping you light your hot water heater’s pilot light, or filling your kitchen full of groceries so you don’t have to shop before you come. Sure, these services might cost a bit, but for many people it will ease some of the worries of owning a second home that’s three hours from their primary residence.
When something is easier to own, it creates more demand. More demand helps prices. Higher purchase prices mean more people will also want to rent from you. It’s easier to rent your home when you have a concierge company that can help you winterize it when you need to, or change a bulb, or replace a sofa.
Will concierge companies totally change Lake Martin and usher in a significant number of Lake Martin investors? Who knows what will happen. But I do think that as Lake Martin becomes more popular in the next 30 years, we certainly will see more of them. And, I think that Lake Martin’s competitiveness versus other second home markets will be largely determined by support industries and the like. Just as the rise of the homeowner was a huge influence on the second license period, the rise of the investor could well be a big factor in the third.
And by the way, for those that might be worried about over development ruining Lake Martin, take heart. There are oodles of restrictions that the new license puts on Alabama Power. Even if the power company were not committed to responsible stewardship of Lake Martin (which it is), the new license is very specific about the use of about every inch of our waterfront.
Whether you are a renter, owner, investor, worker, boater or just a fan of Lake Martin, the next 30 years will be fun. Lord willing, I can’t wait to see how it will unfold!