ASHEVILLE, N.C. (828newsNOW) — A long-vacant Asheville landmark could be headed for redevelopment as city planning documents show early discussions for a proposed Sheetz convenience store and gas station at the former Mountaineer Inn property on Tunnel Road.
City records show an Early Assistance application was filed July 28 for a project identified as “SHEETZ – TUNNEL RD” at 155 Tunnel Road. The application describes a proposed 6,139-square-foot convenience store with a fuel canopy and parking facilities.
The application remains listed as pending.
An Early Assistance meeting has been scheduled for Aug. 6, where city review staff will provide feedback on the potential Sheetz convenience store and fuel canopy proposed for the site, according to the City of Asheville.
City officials said the meeting is part of the preliminary review process and that no formal development application has been submitted.
“We do not have any additional information at this time as there has not been a formal project application,” the city said in a statement to 828newsNOW.
The city also said notes from the Aug. 6 Early Assistance meeting will be available afterward and can provide additional details about the proposal and the issues identified during staff review.
An Early Assistance meeting allows developers to meet with city staff before submitting formal development plans. The process does not constitute approval of a project.
According to planning documents, the proposal will require reviews from multiple city departments, including planning and zoning, grading and stormwater, driveway and parking, building code and fire code officials.
The 2.05-acre property is zoned Highway Business and Office Business and lies within a floodplain and aquatic buffer, according to city records.
The proposal marks the latest chapter for the historic Mountaineer Inn, whose iconic neon hillbilly signs once greeted travelers along Tunnel Road.
The property has sat largely vacant since it was purchased by LOGE Camps for $6.1 million in 2023. Plans to redevelop the motel into an outdoor-focused lodging destination stalled, and the property has since been plagued by unpaid property taxes, code enforcement issues, city cleanup actions and a first-degree arson fire earlier this year.
City permit records show extensive commercial renovation permits were issued in early 2024 for multiple buildings on the property, along with development and fire permits. However, no redevelopment has been completed, and the site has remained fenced off for months.
The proposed convenience store would occupy a prominent Tunnel Road corridor directly across from an existing Shell gas station.
Because no formal development application has been filed, the proposal could still change before any plans move forward. If the project advances, it would undergo additional city review as part of the formal development application process.

