In re Snowstone, LLC Act 250 Jurisdictional Opinion (Michael Harrington, Appellants)

2021 VT 72
CourtSupreme Court of Vermont
DecidedSeptember 3, 2021
Docket2020-197
StatusPublished

This text of 2021 VT 72 (In re Snowstone, LLC Act 250 Jurisdictional Opinion (Michael Harrington, Appellants)) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Snowstone, LLC Act 250 Jurisdictional Opinion (Michael Harrington, Appellants), 2021 VT 72 (Vt. 2021).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vermont.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2021 VT 72

No. 2020-197

In re Snowstone, LLC Act 250 Jurisdictional Opinion Supreme Court (Michael Harrington, et al., Appellants) On Appeal from Superior Court, Environmental Division

December Term, 2020

Thomas S. Durkin, J.

Merrill E. Bent of Woolmington, Campbell, Bent & Stasny, P.C., Manchester Center, for Appellants.

Lawrence G. Slason of Law Office of Salmon & Nostrand, Bellows Falls, for Appellee.

David R. Cooper of Facey Goss & McPhee P.C., Rutland, for Appellees/Intervenors Justin and Maureen Savage.

Melanie Kehne, Assistant Attorney General, Montpelier, for Vermont Natural Resources Board.

PRESENT: Robinson, Eaton, Carroll and Cohen, JJ., and Morris, Supr. J. (Ret.), Specially Assigned

¶ 1. COHEN, J. In this case, we affirm the Environmental Division’s conclusion that

a stone quarry on less than an acre of land within a larger unimproved parcel does not constitute

“development” in a municipality that has not adopted permanent zoning and subdivision bylaws,

and therefore does not require an Act 250 permit.

¶ 2. The Environmental Division made the following findings based on evidence

introduced at a merits hearing. Justin and Maureen Savage (landowners) own a 176-acre parcel of undeveloped land in a rural area near Cavendish, Vermont. Snowstone, LLC, seeks to buy a

portion of landowners’ property to operate a dimensional stone extraction project. To that end,

Snowstone and landowners executed a contract whereby, subject to several contingencies,

Snowstone would purchase a 0.64-acre portion of landowner’s property containing the stone

quarry and a 0.29-acre access easement over an existing road within the property. The combined

acreage of the proposed project is accordingly 0.93 of an acre, all contained within the 176-acre

parcel. There are no other commercial or industrial improvements on the 176 acres or in the

vicinity.

¶ 3. After executing the contract, Snowstone requested a jurisdictional opinion from the

Act 250 district coordinator to determine whether the project would need an Act 250 permit. See

10 V.S.A. § 6007(c) (authorizing jurisdictional opinions). A group of neighboring landowners

(neighbors) filed comments, arguing that the project would require said permit.

¶ 4. The district coordinator issued a jurisdictional opinion, concluding that the

proposed project needed an Act 250 permit because the project constituted “development,” defined

in relevant part as “[t]he construction of improvements for commercial or industrial purposes on

more than one acre of land within a municipality that has not adopted permanent zoning and

subdivision bylaws.” Id. § 6001(3)(A)(ii).1 Applying this Court’s analysis in In re Vitale, which

we discuss below, the district coordinator determined that the project land and the remainder of

the 176-acre parcel would be controlled by the same person and thus both had to be considered

together under § 6001(3)(A)(ii). 151 Vt. 580, 563 A.2d 613 (1989). The district coordinator

concluded that both parcels would be controlled by the same person because, in his estimation, the

contract between Snowstone and landowners was not an “arms-length transaction” due to the

purchase price, a clause granting landowners a right of first refusal to buy back the project land,

1 The parties have always agreed that Cavendish is such a municipality. 2 and a deed restriction precluding any development of the project land after stone extraction was

completed. In short, the district coordinator determined that given the nature of their transaction,

Snowstone and landowners remained “effectively affiliated for profit in the nature of a joint

venture,” and that this required the entire 176 acres to be considered under § 6001(3)(A)(ii).

¶ 5. Snowstone appealed the jurisdictional opinion to the Environmental Division (the

JO appeal) and presented the court with a revised contract that reduced the purchase price, removed

the right of first refusal, and excised the deed restriction. Neighbors successfully intervened,

arguing that the two parcels would be controlled by the same person due to the nature of the sales

transaction, that the retained parcel would be “involved land”—a term we explain below—and that

the project would require a stormwater discharge permit with stormwater treatment facilities that

would increase the amount of land necessary to operate the project beyond one acre.

¶ 6. The court held a merits hearing on these issues and, after Snowstone’s case-in-

chief, agreed with the parties to bifurcate the matter. First, the court would determine whether the

proposed project would need an Act 250 permit because of the nature of the transaction between

Snowstone and landowners, and whether the retained parcel would be involved land. Second, the

court would order Snowstone to obtain the necessary stormwater permits, and it would revisit the

stormwater issue if the permit requirements indeed increased the land area necessary for the project

beyond one acre.

¶ 7. And so, it was. In an initial merits order, the court declined to apply the concept of

“involved land” because the term—though present in other sections of Act 250—is absent from

§ 6001(3)(A)(ii) and, putting aside the stormwater issue, the project would be contained in less

than an acre. The court then scrutinized the revised sales contract and determined that, with the

excision of the former objectionable provisions, the contract evinced an arms-length transaction

such that Snowstone and landowners were not one person. Accordingly, the court concluded that

the entire 176 acres did not need to be considered under § 6001(3)(A)(ii) and thus the project did

3 not require an Act 250 permit. The court then directed Snowstone to obtain the necessary

stormwater permits and inform the court and neighbors of the permit determination within ten days

of that determination. It further ordered:

Within thirty (30) days of [the stormwater permit] determination or withdrawal, any [p]arty to this jurisdictional opinion appeal may request that the [c]ourt conduct a further hearing on whether any stormwater permit determination has a relevancy to the legal issue of whether all activities necessary for the operation of the proposed dimensional stone quarry can occur within the 0.93 [of an acre] that Snowstone proposes to purchase.

The court warned that if no party requested such a hearing, it would issue a final judgment in the

JO appeal.

¶ 8. Snowstone applied for the stormwater permit and neighbors intervened in those

proceedings, filing questions and comments. On June 12, 2019, the Department of Environmental

Conservation granted Snowstone a multisector general permit (MSGP), authorizing the discharge

of stormwater with all treatment activities contained within the 0.93 of an acre. Neighbors submit

that they never received Snowstone’s notification of the permit determination, and the record does

not reflect that the notification was provided to the court or to neighbors. However, we take

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