In re Ochs

2006 VT 122, 915 A.2d 780, 181 Vt. 541, 2006 Vt. 122, 2006 Vt. LEXIS 330
Supreme Court of Vermont·Decided November 27, 2006·No. No. 05-385·Published·Cited by 14 cases

Opinion

¶ 1. George and Carole Trickett appeal from a decision of the Vermont Environmental Board that their neighbors’ apple growing operation, Crescent Orchards, was a farm and thus exempt from Act 250 review. The Trieketts claim that the apple production company operated by their neighbors, Peter and Carla Ochs, is a commercial enterprise, with attendant off:site production involvement, and it does not qualify for the farming exemption. We affirm.

¶ 2. This Court has experience with the facts in this dispute. We held in Trickett v. Ochs that Vermont’s right-to-farm law did not apply in the circumstances of the ease. 2003 VT 91, ¶ 1, 176 Vt. 89, 838 A.2d 66. Now, we must examine whether Act 250 applies to the Ochses’ farming activities. The matter began with a Jurisdictional Opinion (JO) which asserted Act 250 jurisdiction over the Ochses’ apple orchard and apple packing and distribution facility on 300' acres of land in Orwell, Vermont. George and Carole Trickett live directly across the road from the Ochses’ apple packing facility. The Trieketts complained about the operations at Crescent Orchards: the noise, the fumes, and the interference with the Trieketts’ use of the road. The Environmental Commission Coordinator issued a JO finding that Crescent Orchards was subject to Act 250 review because the Ochses imported apples from lands leased from others. He found that such activities were more like a commercial processing, distribution, and warehouse plant than a farm. Therefore, the coordinator decided, the facility did not meet [542] the farming exemption. See 10 V.S.A. § 6001(22) (exempting certain agricultural activities from Act 250 permitting process).

¶ 3. The Ochses filed a Petition for Declaratory Ruling with the Environmental Board appealing the JO. Id. § 6007(e). They contended that their apple growing operation met the farming exemption, and therefore, it did not require an Act 250 permit. The Board admitted the Trieketts as parties, explaining that persons directly affected by a project are proper parties in declaratory rulings. See Env. Bd. R. 14(A)(5). The Board reversed the JO. The Environmental Board determined that the Ochses’ farm is exempt from Act 250 jurisdiction. The Trieketts appealed.

¶ 4. The facts are not in dispute. Peter and Carla Ochs own approximately 300 acres of land in Orwell, Vermont. Under the name “Crescent Orchards,” the Ochses operate an apple orchard on about 150 acres of their 300-acre parcel. Over the years, there have been various changes to the facilities at Crescent Orchards. The Ochses have built a packing house, a loading dock, and a mechanical line upon which the apples are moved and loaded into trucks for transport. They have partly constructed a cold storage unit. In these facilities, Crescent Orchards’ employees store, wash, wax, wrap, and pack apples to ship, market and sell. Since 1996, all of the apples picked at Crescent Orchards have been packed at their Crescent Orchards packing plant.

¶ 5. The Ochses and their employees do all of the orchard work and packing at Crescent Orchards. They use tractor-trailers equipped with refrigeration units to store their apples for future shipment to market throughout the year. Independent truckers transport many of the apples off the Crescent Orchards site.

¶ 6. Before 1998, the Ochses harvested apples only from their Crescent Orchards lands. Beginning in 1998, in order to obtain other varieties of apples (Empires and Paula Reds), and to have some insurance against the vagaries of weather . and growing conditions, the Ochses started leasing apple orchards from other landowners. Since 1998, the only apples that the Ochses have processed, stored or packed at Crescent Orchards have come from Crescent Orchards lands or from the orchards that they have cultivated on lands that they have leased.

¶ 7. Most of the leases that the Ochses have entered into with the landowners of other orchards are year-to-year leases.1 Under the terms of these lease agreements, the Ochses do all of the work on the lands at the orchards which they lease, including mouse baiting, pruning, spraying and preparing the apple trees in the spring, and picking the apples in the fall. During the lease period, neither lessors nor anyone, other than the Ochses and their employees, work on the leased orchards lands. The Ochses use their own machinery when working on the leased orchard lands. They make all the day-to-day decisions concerning the cultivation of the apples at the leased orchards. The lessors have no control over the conduct of the Ochses’ operations except for decisions about which trees may be felled.

¶ 8. This Court’s review of an Environmental Board ruling is limited. “We accord deference to the Environmental [543] Board’s interpretations of Act 250, its own rules, and to the Board’s specialized knowledge in the environmental field.” In re Nehemiah Assocs., 168 Vt. 288, 292, 719 A.2d 34, 36 (1998). “[T]he Board’s decisions are presumed to be correct, valid, and reasonable,” and absent compelling indications of error, the Court should sustain the Board’s interpretation. Id.; In re Eastland Inc., 151 Vt. 497, 499, 562 A.2d 1043, 1044 (1989). In this case, the Environmental Board properly interpreted the definition of farming and the exemption to Act 250 jurisdiction of farming.

¶ 9. Act 250 requires that a land use permit be obtained prior to the commencement of construction on a development or prior to commencement of development. 10 V.S.A. § 6081(a). “Development” is defined in relevant part as “[t]he construction of improvements for commercial or industrial purposes” on more than one acre if the municipality has not adopted permanent zoning and subdivision bylaws, or on more than ten acres if the municipality where the construction occurs has adopted permanent zoning and subdivision bylaws. Id. § 6001(3)(A)(i), (ii).

¶ 10. There is no dispute that the relevant acreage at Crescent Orchards is greater than ten acres, and therefore, whether the town of Orwell has adopted zoning and subdivision bylaws makes no difference here. The Board also found that the construction of improvements for a commercial purpose had occurred. Because the operation meets the definition of a “development” under both 10 V.S.A. § 6001(3)(A)(i) and (ii), it is subject to the permitting requirements of Act 250, unless it is otherwise exempt. Id. § 6081(a).

¶ 11. Certain developments are exempt from Act 250, including “[t]he construction of improvements for farming ... purposes below the elevation of 2,500 / feet.” 10 V.S.A. § 6001(3)(D)(i). Crescent Orchards is located below the elevation of 2,500 feet. To qualify for the farming exemption, Crescent Orchards must meet the definition of “farming,” defined in relevant part, as follows:

(A) the cultivation or other use of land for growing food, fiber, Christmas trees, maple sap, or horticultural and orchard crops; or
(E) the on-site storage, preparation and sale of agricultural products principally produced on the farm;____

Id. § 6001(22)(A), (E).

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In re Ochs, 2006 VT 122, 915 A.2d 780, 181 Vt. 541, 2006 Vt. 122, 2006 Vt. LEXIS 330 (Vt. 2006).

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