Traxco, Inc. v. Government of the Virgin Islands & Golden Resorts, LLC

49 V.I. 240, 2008 WL 1969966, 2008 V.I. LEXIS 3
CourtSuperior Court of The Virgin Islands
DecidedApril 3, 2008
DocketCase No. ST-06-CV-602
StatusPublished

This text of 49 V.I. 240 (Traxco, Inc. v. Government of the Virgin Islands & Golden Resorts, LLC) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Traxco, Inc. v. Government of the Virgin Islands & Golden Resorts, LLC, 49 V.I. 240, 2008 WL 1969966, 2008 V.I. LEXIS 3 (visuper 2008).

Opinion

DONOHUE, Presiding Judge

MEMORANDUM OPINION

(April 3, 2008)

THIS MATTER is before the Court on the Motion to Dismiss of Intervenor Golden Resorts, LLC (“Golden”), the Opposition by Plaintiff Traxco, Inc. (“Traxco”), and Golden’s Reply.

I. Procedural Background

Traxco, the plaintiff in this case, is a Virgin Islands corporation with its principal place of business in Frederiksted, St. Croix. Traxco currently operates a casino on St. Croix. Golden, the intervening Defendant, intends to build a 605-room hotel, casino, casino resort, and other buildings in the Great Pond area on the south shore of St. Croix. Answer, ¶ 50. Because the area has been designated an “area of particular concern,” Golden was obliged to seek, and did seek and receive, a permit under the Virgin Islands Coastal Zone Management Act (“CZM Act”). 12 V.I.C. §§ 901-914.

The CZM Act, 12 V.I.C. §§ 901-914, was enacted in order to advance the “orderly, balanced utilization and conservation of the resources of the coastal zone, taking into account the social and economic needs of the residents of the Virgin Islands.” 12 V.I.C. § 903(b)(4). Primary authority for implementing the Act is vested in the Coastal Zone Management Committee (“CZM Committee”), which oversees the granting of the permits required for new development in area defined under the act as the coastal zone. 12 V.I.C. §§ 904, 910. A party aggrieved by a Commission decision to grant or deny a permit can appeal the decision to the Board of Land Use Appeals (“BLUA”), and can then file a petition for writ of review with the Superior Court. 12 V.I.C. §§ 913, 914. The CZM Act also allows “any person” to “maintain an action for declaratory and equitable relief to restrain any violation of this chapter.” 12 V.I.C. § 913(b)(1).

Golden applied for a permit from the CZM Committee on September 5, 2003. Mot. to Dismiss, p. 2. A public hearing was held on January 8, 2004. Id. While some people and groups filed written oppositions to the [243]*243permit application, Traxco did not. Id. Golden appealed the CZM Committee’s written rescinding of an oral decision to grant the Permit by reason of the Committee’s inaction to the BLUA. Id. BLUA determined, in January 2005, that Golden was entitled to a permit by default, and sought and received certain submissions from Golden. Id. Two aggrieved parties filed a Petition for Writ of Review of BLUA’s decision, and, after granting the Petition, the Superior Court upheld the issuance of the Permit on May 26,2006. Virgin Islands Conservation Soc’y, Inc. v. Virgin Islands Bd. of Land Use Appeals, Civ. No. 83/2005 (Super. Ct. 2006). This decision was appealed.

The Appellate Division of the District Court handed down its decision on December 6, 2007, addressing four separate issues. Virgin Islands Conservation Soc’y, Inc. v. Virgin Islands Bd. of Land Use Appeals, 2007 U.S. Dist. LEXIS 91458 (D.V.I. 2007). The Appellate Division upheld the Superior Court’s holdings that the BLUA had appropriately exercised jurisdiction over Golden’s appeals from CZM Committee decisions on July 30, 2004, and August 3, 2004, and that Golden had not waived the statutory time period for the Committee to consider its application with a letter it sent to the Committee in January, 2004. Id., 2007 U.S. Dist. LEXIS 91458 at **10-15. The Appellate Division also upheld the Superior Court’s finding that Golden was entitled to a permit by default due to the inaction of the Committee for thirty days after the public hearing on January 8, 2004. Id., 2007 U.S. Dist. LEXIS 91458 at *16, citing 12 V.I.C. § 910(d)(4). The Appellate Division concluded that it “cannot hold that the Superior Court erred in determining that there was substantial evidence to conclude that Golden was entitled to a permit by default.” Id., 2007 U.S. Dist. LEXIS 91458 at *17. The Appellate Division concluded that the Superior Court had erred in failing to consider arguments that were not raised before the BLUA, concluding that “where the (BLUA) acts as the permit issuer, the CZMA’s governing rules do not provide any administrative appeal rights to exhaust, prior to filing a petition for writ of review to the Superior Court.” Id., 2007 U.S. Dist. LEXIS 91458 at *19. The Appellate Division also noted that a permit issuance by default does not “absolve[] the agency of its statutory obligations of factual review and investigation,” Id., 2007 U.S. Dist. LEXIS 91458 at *25, and pointed out that the record was too sparse to allow a determination as to whether the CZM Committee had properly discharged its duties. Id., 2007 U.S. Dist. LEXIS 91458 at *18. The [244]*244Appellate Division remanded the case to the Superior Court with instructions that it be remanded to the CZM Committee, because the record was insufficiently developed. Id., 2007 U.S. Dist. LEXIS 91458 at *28.

Virgin Islands Conservation Society appealed the Appellate Division’s decision to the Third Circuit, which dismissed the appeal on the grounds that there was no important legal issue resolved by the decision below, and that dismissing the appeal would “not foreclose future appellate review as a practical matter.” Virgin Islands Conservation Soc’y, Inc. v. Virgin Islands Bd. of Land Use Appeals, No. 08-1047, slip op. at 2 (3d Cir. 2008).

After the initial Superior Court decision, but before the Appellate Division’s ruling, Traxco filed this Complaint against the Government on November 14, 2006, seeking a temporary restraining order, preliminary and permanent injunctions, declaratory judgment, mandamus, and other relief.

II. Legal Contentions of the Parties

1. Traxco’s Complaint

Traxco asserted that it has standing as a Virgin Islands taxpayer to bring this action under the First Amendment, under 5 V.I.C. § 80 and 5 V.I.C. § 1361, and that it has standing under 12 V.I.C. § 913(b)(2), which grants standing to “any person” in order to compel government officials to perform duties specifically imposed by the CZM Act. Compl., ¶¶ 12(e), 13, 16.

Traxco alleged that the Permit was issued as a result of “factual and legal errors of the government agencies charged with administering the general zoning and coastal management laws of the Virgin Islands.” Compl., ¶ 1. The allegedly unlawful development, according to Traxco, came about “[a]s a result of the errors, omissions, and/or neglect of various Virgin Islands public agencies and officials.” Compl., ¶ 2.

Because the instant Motion to Dismiss deals only with the question of whether Traxco can rely on statutes other than the CZM Act, and whether it was required to exhaust its administrative remedies before bringing this suit, Traxco’s substantive allegations as to why the Permit was wrongly granted will be briefly summarized here. Traxco alleged that Golden relied on an inaccurate zoning map on file, Official Zoning Map [245]*245(Amendment Copy) Map No. SCZ 14, which failed to account for the Legislature’s Act 5462 and the Declaration of Covenants and Restrictions (the “Declaration”), executed by the Great Pond Realty Trust in 1989, both of which limited the development that could take place in the area of planned development. Compl., ¶¶ 11(a), 11(b).

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49 V.I. 240, 2008 WL 1969966, 2008 V.I. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traxco-inc-v-government-of-the-virgin-islands-golden-resorts-llc-visuper-2008.