15 Langsford Owner LLC v. Town of Kennebunkport

2024 ME 79
CourtSupreme Judicial Court of Maine
DecidedDecember 19, 2024
DocketYor-23-265
StatusPublished

This text of 2024 ME 79 (15 Langsford Owner LLC v. Town of Kennebunkport) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
15 Langsford Owner LLC v. Town of Kennebunkport, 2024 ME 79 (Me. 2024).

Opinion

MAINE SUPREME JUDICIAL COURT Reporter of Decisions Decision: 2024 ME 79 Docket: Yor-23-265 Argued: March 7, 2024 Decided: December 19, 2024

Panel: STANFILL, C.J., and MEAD and HORTON, JJ., and HJELM and HUMPHREY, A.R.JJ.

15 LANGSFORD OWNER LLC

v.

TOWN OF KENNEBUNKPORT

HORTON, J.

[¶1] The Town of Kennebunkport appeals from a judgment of the

Superior Court (York County, Mulhern, J.) vacating the Town’s denial of

applications by 15 Langsford Owner LLC (15 Langsford) for licenses under the

Town’s Short-Term Rental Ordinance (STRO). In enacting the STRO, the Town

did not include any provision allowing an appeal from the denial of a license

application, see Kennebunkport, Me., Code ch. 129 (current through

June 6, 2022), so we must determine whether the denial of 15 Langsford’s

applications is subject to direct review under Rule 80B of the Maine Rules of

Civil Procedure, which ordinarily provides the “exclusive process” for judicial

review of municipal permitting and licensing decisions, Gorham v.

Androscoggin Cnty., 2011 ME 63, ¶ 22, 21 A.3d 115. We conclude both that the 2

Town’s decision is reviewable pursuant to Rule 80B and that 15 Langsford was

entitled to the permits based on the undisputed facts and the terms of the STRO.

We therefore affirm the judgment of the Superior Court.

I. BACKGROUND

[¶2] “The following facts are drawn from the Superior Court’s decision

and are supported by the record.” Hurricane Island Found. v. Town of

Vinalhaven, 2023 ME 33, ¶ 2, 295 A.3d 147. Between December 2020 and

June 2021, 15 Langsford acquired eleven condominium units in

Kennebunkport. Units one through nine are contained within a single

structure, and units ten and eleven each occupy a freestanding structure. Each

unit has one or more bedrooms, a kitchen, a living area, and at least one

bathroom. Before 15 Langsford acquired the units, the freestanding units

received Town approval as residential single-family dwellings and the

structure containing units one through nine was approved as a legally

nonconforming residential multiplex dwelling under the Town’s Land Use

Ordinance (LUO).1 See Kennebunkport, Me., Code §§ 240-2.2, -4.10, -7.11

(Nov. 6, 2018). The units were governed by a Declaration of Condominium,

1The multiplex is legally nonconforming because it contains nine residential dwelling units despite the LUO’s limitation of multiplex dwellings to eight units. Kennebunkport, Me., Code § 240-7.11(A) (Nov. 6, 2018). 3

which required that they be used for “residential purposes” and prohibited

rentals “for transient or hotel purposes.”

[¶3] In April 2021, 15 Langsford began renting the units exclusively for

occupancy for periods of less than thirty consecutive days. At that time, the

Town did not regulate short-term rentals of residential property. The units

were offered for rent on the website of 15 Langsford’s parent company, which

manages and operates the units and other resort properties in Kennebunkport.

The parent company’s website, which describes the parent company as offering

“the best inns, resorts, and hotels in Kennebunkport,” acts as a booking

platform for 15 Langsford’s units and the parent company’s other properties.

In addition to using a shared platform to book reservations at the units,

short-term rental guests at the units receive access to amenities offered by the

parent company at its other properties.

[¶4] Also in April 2021, the Town contacted 15 Langsford, stating that it

believed that 15 Langsford was violating the LUO and the Declaration of

Condominium by using the units for transient rentals. The Town explained in

May 2021 that it viewed the rentals as “part of a larger commercial hospitality

enterprise” operating without Planning Board approval required by the LUO.

Without issuing a formal notice of violation, the Town recommended that 4

15 Langsford seek Planning Board approval pursuant to the LUO for use of the

units as a “commercial lodging use” and comply with the Declaration of

Condominium prohibition on transient rentals.

[¶5] In response, on June 15, 2021, 15 Langsford amended the

Declaration of Condominium to eliminate the prohibition on transient rentals

and applied for Planning Board approval for use of the units as a hotel.

[¶6] Also in June 2021, the Town began regulating short-term rentals

through a licensing ordinance to “require the disclosure and licensing of

short-term rentals operated within the Town of Kennebunkport,” impose

“modest performance standards,” and limit the number of short-term rentals in

the Town. Kennebunkport, Me., Code § 129-1. Under the STRO, “[l]egally

existing residential dwelling units may be used as short-term rentals upon the

issuance of a short-term rental license,” but certain “lodging establishment

uses,” including uses for hotels and inns, are not eligible for STRO licenses. Id.

§ 129-2(A), (C). The STRO lacks any provision for appeals of decisions denying

STRO licenses.2

[¶7] In November 2021, 15 Langsford contacted the Town’s code

enforcement officer (CEO) about obtaining short-term rental licenses for its

2 The ordinance provides a right of appeal only from the suspension or revocation of a STRO license. See Kennebunkport, Me., Code § 129-8(D) (current through June 6, 2022). 5

units under the STRO. The CEO reiterated the Town’s position that

15 Langsford was using the units as a hotel or inn and, therefore, 15 Langsford

would not be eligible to receive short-term rental licenses. Nonetheless,

15 Langsford submitted an application for a short-term rental license for each

of its eleven units. It also withdrew its application for Planning Board approval

for use of the units as a hotel.

[¶8] On May 12, 2022, the CEO issued letters denying each of the eleven

applications because the units were not “[l]egally existing residential dwelling

units” eligible to receive short-term rental licenses. Id. § 129-2(A). The CEO’s

letters reasoned that 15 Langsford had operated, advertised, and managed the

units as “a commercial lodging establishment (e.g., an inn) under the unified

management, control, and/or ownership of a hospitality business,” without

Planning Board approval, “in violation of Town ordinances.”

[¶9] On June 7, 2022, 15 Langsford filed complaints in the Superior Court

pursuant to Rule 80B and the Uniform Declaratory Judgments Act, 14 M.R.S.

§§ 5951-5963 (2024), seeking review of the CEO’s denial of the license

applications.3 The court (Douglas, J.) consolidated the appeals and, following

3 15 Langsford’s request for declaratory relief and, in part, its request for Rule 80B relief focused

on alleged constitutional infirmities regarding the STRO. 15 Langsford’s facial challenges were dismissed, and the Superior Court concluded that its as-applied challenges lacked merit. 15 Langsford argues these constitutional issues only as alternative grounds to affirm the judgment. 6

oral arguments, the court (Mulhern, J.) entered a judgment on June 13, 2023,

concluding that the CEO erred as a matter of law by determining that units

rented by 15 Langsford were not “[l]egally existing residential dwelling units”

within the meaning of section 129-2 of the STRO. Citing Rule 80B, the Superior

Court vacated the decision of the CEO denying 15 Langsford’s applications for

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2024 ME 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/15-langsford-owner-llc-v-town-of-kennebunkport-me-2024.