Demorest’s water-supply plan puts two Tallulah Falls parcels at risk of condemnation

Demorest City Council is scheduled to hear a proposed eminent-domain proceeding at 6 p.m. Sept. 16 involving Parcels 100D 006 and 100D 006A in Tallulah Falls, land the city says is needed to expand its water system. The hearing will be held at 250 Alabama St. in Demorest and replaces a Sept. 1 date, according to the later city notice and reporting by Habersham News.

The decision could determine whether Demorest may use eminent domain to acquire private property near Tallulah Lake for a water-supply project. City Manager Mark Musselwhite told Now Georgia the effort is part of a long-range strategy to secure dependable water for a regional system, while the property owners oppose the proposed acquisition. For residents, the dispute joins a local property-rights fight to questions about the future source and reach of an essential public utility.

The proposal has been pending in some form since a Dec. 17, 2025 notice from the city attorney identified the same two parcels for proposed condemnation and set a Jan. 6, 2026 hearing. A hearing-sign image in the third-party-hosted city record copy instead says Jan. 6, 2025, and no record reviewed establishes whether that January hearing occurred or produced action. On Aug. 11, the city attorney sent a new notice to the current ownership, again citing water-system expansion and initially setting a Sept. 1 hearing; the city later noticed Sept. 16 instead.

Demorest’s position, as described in the city attorney’s notice, is that the parcels are subject to a proposed condemnation for water-system expansion. Musselwhite told Now Georgia that the broader project would support long-term water reliability beyond the city’s boundaries. Johnny and David Irvin and J&D Irvin Holdings oppose the effort, Now Georgia reported. Separately, a Change.org petition titled “Protect Tallulah Falls: No Eminent Domain for Demorest’s Water Expansion” signals organized public opposition, though the petition alone does not establish the accuracy of its claims or the breadth of local opinion.

The Sept. 16 proceeding remains a proposal, not a completed taking. The August attorney notice says the city plans to pursue acquisition through the Declaration of Taking method and enclosed appraisal and comparable-sale materials, but that notice is an official record copy hosted by Now Georgia, not a filed condemnation case. No official record identified a council approval or denial, compensation amount, negotiated purchase, recorded vote, court filing or hearing outcome. The later city notice establishes the new hearing date but does not explain why it changed.

The next public step is the Sept. 16 hearing, when the council is scheduled to consider whether to exercise eminent-domain authority for the River Street-area parcels, located about 430 feet beyond Hickory Nut Mountain Road. What remains undecided is whether the council will act after the hearing and, if it does, whether either parcel will ultimately be acquired through a negotiated agreement or a filed condemnation proceeding. Those answers should appear, if they occur, in a council record, revised notice or acquisition filing.