A major cabin and campsite development could be built just outside Damascus town limits — if the $5 million needed to extend sewer services to the area comes together.
The 22-acre Laurel Gateway site, off Virginia 91 and just past the U.S. 58/91 split, is owned by the town of Damascus. GO Virginia, a state-funded economic development initiative, earmarked $75,000 for a feasibility study so the town and Washington County could figure out what to do with it.
The localities were looking for ways to draw business back to the area after Hurricane Helene severely damaged the upper half of the Virginia Creeper Trail — which is the backbone of Damascus’ economy — in 2024. The stretch of the trail between Damascus and Whitetop Station, near the North Carolina line, is being rebuilt and is scheduled to reopen March 31.
During an October meeting of Damascus and Washington County leaders, RKG Associates presented the results of the study, which revealed that the most appropriate use would be a large campsite.
The land’s location less than a mile from the Virginia Creeper Trail is its greatest asset, said Kyle Talente of RKG.
The firm’s proposal for developing the site would include nearly 200 overnight options for visitors across cabins, tents and RV sites. Cabins would be especially beneficial, Talente said, since they can be operated year-round while the region’s tent camping usually shuts down during the winter.
Cabins and camping would create a steady customer base for restaurants and other shops in Damascus, Talente said. Most of the about 112,000 annual Virginia Creeper Trail visitors since the hurricane take day trips rather than spend the night in or around Damascus, according to the presentation.
Cabins close to the Creeper Trail create an opportunity for visitors to stay the night — and spend five times the amount of money in the community compared to when they would just come for a day trip, according to the presentation.
“Most of the other campgrounds that exist in the region are not very close to the Creeper, or not very close to the Appalachian Trail,” Talente said. “This provides an opportunity to capture, here in Washington County, a lot of the activity that’s already coming here.”
The Appalachian Trail, which runs along the Creeper Trail for short stretches, goes through Damascus — nicknamed Trail Town USA.
If the county goes with RKG’s suggested plan, people who stay at the site would likely spend around $7.5 million annually in Damascus, Talente said.
For whoever runs it — either the town or a company that leases it from the town — it would bring in about $1.6 million to $1.8 million per year in operating income, Talente said. It would also likely bring in about $267,000 in lodging taxes annually for Damascus, according to the presentation.
RKG is an Alexandria-based consulting firm. The town and the county would need to decide whether the site would be publicly run or not, Talente said, and find someone to build it.
The first step has to be getting sewer service to the property, he said. Based on a preliminary study, that could cost $5 million — more than the site is worth to a developer, even if the campsite is considerably successful, he said.
That means the county and the town would need to pay for the sewer to make the development viable, Talente said. He said the project would qualify for several state and federal grants, though they likely won’t cover the full cost. Putting in sewer could also make about 100 acres of the surrounding untouched land more enticing for developers, he said.
Adding cabins and RV slips
Once that is done, RKG’s analysis suggests a staged approach, adding about 40 cabins and 27 RV slips before opening, then gradually adding tent campsites and more cabins over the years if demand shows the project is successful, Talente said.
Once fully completed, the site would have 81 cabins and 77 tent campsites, plus the 27 RV slips, according to RKG’s proposal. The process would likely take about four years, Talente said.
Town Manager Isaiah Thomas said the county owns the sewer in the area, so the town will work with the Washington County Service Authority to extend it. The sewer extension could also benefit a couple dozen residential properties and other parcels of undeveloped land, he said by phone.
As for the usage, Thomas said it would be the largest resort-style campground in the area and would likely benefit Smyth County as well. It would bring in more people who would hike in the Mount Rogers and Grayson Highlands region, he said.
A 50-site campground could bring in 300 people over one weekend, he said, and camping typically brings in longer stays than hotels.
“When it comes to impact, bang for your buck is getting your money back on sewer,” Thomas said. “It’s more than likely going to come from a campground than residential housing.”
Damascus Mayor Katie Lamb said in an interview that she believes the money will come together with the Washington County Service Authority’s help as well as grants.
“That property has been sitting there vacant for all these years, and if it creates revenue for the county and the town, that’s just a win,” she said.
The firm looked into industrial uses for the site, Talente said, but given the lack of sewer service and its more isolated location, a project based around recreation would be the most appropriate use for it.
More broadly, Washington County’s population is expected to continue declining, according to the presentation. It would be better for the county to focus on bringing in spending from tourists, rather than residents, for the stability of the project, he said.
On the whole, the county is adding jobs that service an economy meant for tourism, he said. For example, the food service and entertainment industries combined have added 350 jobs to the market from 2015 to 2025, according to RKG’s data analysis. Meanwhile, the county lost 1,348 manufacturing jobs in the same time period, Talente said.
