Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley v. Mitch Carmichael, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and Mike Graney, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development

CourtIntermediate Court of Appeals of West Virginia
DecidedMay 13, 2024
Docket23-ica-174
StatusPublished

This text of Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley v. Mitch Carmichael, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and Mike Graney, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development (Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley v. Mitch Carmichael, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and Mike Graney, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development) is published on Counsel Stack Legal Research, covering Intermediate Court of Appeals of West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley v. Mitch Carmichael, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and Mike Graney, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development, (W. Va. Ct. App. 2024).

Opinion

IN THE INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA Spring 2024 Term FILED _____________________________ May 13, 2024 released at 3:00 p.m. No. 23-ICA-174 ASHLEY N. DEEM, DEPUTY CLERK _____________________________ INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA

ALEXANDER FLEMING, CAROLE CARTER, CAROL GALLANT, BARBARA HUMES, and BENJAMIN BUCKLEY, Plaintiffs Below, Petitioners, v. MITCH CARMICHAEL, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and MIKE GRANEY, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development, Defendants Below, Respondents. ________________________________________________________________________ Appeal from the Circuit Court of Kanawha County Honorable Maryclaire Akers, Judge Civil Action Nos. 22-C-20, 22-C-21, 22-C-22, 22-C-23, and 22-C-24

AFFIRMED ________________________________________________________________________ Submitted: March 19, 2024 Filed: May 13, 2024

Robert M. Bastress, Jr., Esq. Patrick Morrisey, Esq. Morgantown, West Virginia Attorney General Counsel for Petitioners Lindsay S. See, Esq. Solicitor General Michael R. Williams, Esq. Principal Deputy Solicitor General Sean M. Whelan, Esq. Deputy Attorney General Grant A. Newman, Esq. Assistant Solicitor General Charleston, West Virginia Counsel for Respondents JUDGE DANIEL W. GREEAR delivered the Opinion of the Court GREEAR, Judge:

Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and

Benjamin Buckley (“Petitioners”), appeal the March 29, 2023, order of the Circuit Court

of Kanawha County granting Mitch Carmichael, in his capacity as the Secretary of the

West Virginia Department of Economic Development, and Mike Graney’s, in his capacity

as the Executive Director of the West Virginia Department of Economic Development

(“Respondents”), Motion to Dismiss.

Having reviewed this matter, we conclude that the circuit court was correct

in granting the Respondents’ motion on the basis that the statute at issue is a general law

within the meaning of Article VI, § 39 of the West Virginia Constitution. Accordingly, we

affirm the March 29, 2023, Order Granting Dismissal.

I. FACTUAL AND PROCEDURAL BACKGROUND

In 2007, SWaN Hill Top House Hotel (“Developer”) purchased the Hill Top

House Hotel (“Hill Top”) in Harpers Ferry, West Virginia, intending to rebuild the

deteriorating property. However, from 2007 to 2019 the project failed to progress,

increasing friction between the Developer and the town residents. In 2019, the Harpers

Ferry town council executed certain street sales agreements with the Developer to enable

further project development.

1 In 2020, the West Virginia Legislature enacted the Tourism Development

District Act (“Act”), which has been codified at West Virginia Code § 5B-1-9 (2020). The

Act authorizes the West Virginia Department of Economic Development (“Department”)

to designate tourism development districts (“TDD”) in up to five towns which have less

than 2,000 residents for projects with a minimum investment of $25 million. Upon such

designation, the TDD would be exempt from nearly all municipal regulation, which

includes a municipality’s zoning, historic preservation, noise, land use, building permits,

inspection, and licensing ordinances.1 Instead, the TDD would be subject to the

Department’s regulations, and the building codes, land use, permitting, noise ordinances,

and historic preservation standards in its TDD agreement which is enforced by the

Department. W. Va. Code R. § 145-16-9.2.2 (2021). On May 5, 2021, the Developer sought

to establish Hill Top as the first TDD. The Hill Top application was approved by the

Department on August 3, 2021. The Department specifically determined the Hill Top

designation would have "a significant economic impact on the state and the region"

including a "marked increase in jobs and payroll in the district."

On September 17, 2021, Public Asset Protection, Inc. (“PAP”), a non-profit

corporation representing the interest of several unnamed Harpers Ferry residents, filed a

civil action in the Circuit Court of Jefferson County, West Virginia, Public Asset

Protection, Inc. v. Corporation of Harpers Ferry, et al., Civil Action No. CC-19-2021-C-

1 The Act reserved a municipality’s authority to collect taxes and fees from the TDD as collected by other similarly situated businesses. W. Va. Code § 5B-1-9(m) (2020). 2 134 (Cir. Ct. Jefferson Cty. 2021), requesting the invalidation of Harpers Ferry Ordinance

No. 2021-02 (“Ordinance”) which authorized the conveyance, via a private sale, of certain

public streets to the Developer for the Hill Top project. The PAP complaint alleged that

the Ordinance was in violation of West Virginia Code § 8-12-18 (2018) which requires a

fair and adequate public auction. Additionally, and most pertinent to the matter at hand,

the PAP complaint alleged the Ordinance was in violation of the existing Harpers Ferry

zoning and subdivision codes.2 The defendants in the Jefferson County civil action, the

town of Harpers Ferry, its council and the Developer, filed their respective motions to

dismiss. Addressing the allegations involving the existing zoning and subdivision codes

application, the circuit court was forced to determine the constitutionality of the Act, West

Virginia Code § 5B-1-9.3 On January 13, 2022, the circuit court issued a final order

dismissing the PAP complaint. In that order, the circuit court concluded the Act was a

general law and held it to be constitutional; therefore, the Hill Top project was exempt

from Harpers Ferry zoning and subdivision ordinances. PAP never appealed that order.

Two days prior to the dismissal in the PAP civil action in Jefferson County,

Petitioners initiated the instant action in the Circuit Court of Kanawha County, West

Virginia against Ed Gaunch, in his official capacity as Secretary of the West Virginia

2 The PAP complaint also contained counts involving the alleged violation of public trust, public policy, and conflicts of interest. 3 We note that on November 23, 2021, the State of West Virginia filed a Brief of Amicus Curiae before the circuit court defending the constitutionality of the statutes challenged by PAP. 3 Department of Commerce, and Mike Graney, in his official capacity as Director of the

West Virginia Department of Economic Development.4 Petitioners alleged: (1) the Act

created a special law regulating and altering the municipal affairs of Harpers Ferry in

violation of Article VI, §§ 39 and 39a of the West Virginia Constitution; (2) the Act

violated equal protection because it limits the availability of TDD to towns under 2,000

residents; (3) the Act negated the plaintiffs’ constitutional right to “self-rule” and “right to

vote,” because the Act stated that TDDs are to remain in existence notwithstanding its

repeal or alteration; and, (4) it bound future Legislatures in violation of Article VI of the

West Virginia Constitution. The amended complaint requested the circuit court to declare

the Act void and to impose an injunction prohibiting its enforcement.

On June 24, 2022, Respondents filed their Motion to Dismiss, arguing that

Petitioners were collaterally estopped on the issue of constitutionality. Alternatively,

Respondents argued that if collateral estoppel did not apply, the circuit court should reach

the same conclusions on these issues as the Jefferson County decision. The circuit court

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Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley v. Mitch Carmichael, in his Official Capacity as Secretary of the West Virginia Department of Economic Development, and Mike Graney, in his Official Capacity as Executive Director of the West Virginia Department of Economic Development, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-fleming-carole-carter-carol-gallant-barbara-humes-and-wvactapp-2024.