West Virginia Supreme Court Hears Challenge to Tourism Development District Act
A 2020 state law crafted to jump-start the stalled redevelopment of the historic Hill Top House Hotel faced a constitutional test Wednesday before the West Virginia Supreme Court of Appeals, newsandsentinel.com reported. Five Harpers Ferry residents are asking the court to overturn the Tourism Development District Act, arguing that the legislation unlawfully strips small municipalities of local control and voting rights.
The statute empowers the state Development Office to step into tourism projects in Class IV municipalities with populations of 2,000 or fewer, provided the private investment reaches at least $25 million. Once the state designates a tourism development district, local municipal authority vanishes. Zoning, land use, historic preservation, building permits, noise ordinances, lighting rules, and licensing requirements are all transferred from local hands to state-level oversight.
Investors Plan Multi-Million Dollar Hotel Renovation
SWaN Hill Top House Hotel LLC acquired the sprawling Harpers Ferry property in 2007 with plans to renovate the dilapidated 129-room hilltop landmark. Local disputes and friction with the municipal government stalled the project for nearly two decades. The state Department of Economic Development approved SWaN’s application in 2021, designating the site as a tourism development district with an estimated private investment of $138 million.
The developer began demolition work on the historic hotel in 2021. However, the Harpers Ferry Historic Landmarks Commission raised concerns in June regarding a lack of subsequent progress on the site, writing a letter to the state Department of Commerce to question the delays.
Residents Argue Law Violates Equal Protection
In January 2022, residents Alexander Fleming, Carole Carter, Carol Gallant, Barbara Humes, and Benjamin Buckley filed complaints in Kanawha County Circuit Court. The separate actions were later consolidated into a single lawsuit challenging the constitutionality of the Tourism Development District Act as unlawful special legislation.
The effect of the Tourism Development Act … was to displace virtually all municipal regulation as applied to districts,
said Bob Bastress, an attorney representing the Harpers Ferry residents. It retained most of the taxing powers that municipalities possess, but its regulatory powers were completely displaced and transferred to the state.
Lower courts previously sided with the state. The Kanawha County Circuit Court dismissed the residents’ lawsuit, citing an earlier 2021 challenge brought by a Harpers Ferry nonprofit that was also thrown out by the Jefferson County Circuit Court. The state Intermediate Court of Appeals subsequently upheld the Kanawha County dismissal, finding no violation of constitutional equal protection or self-rule rights.
Justices Debate If Residents Have Standing to Challenge Statute
During Wednesday’s oral arguments, Chief Justice C. Haley Bunn questioned whether the individual residents possess the legal standing to challenge the statute. Most litigation regarding special laws is brought by municipalities,
Bunn said, asking whether the town itself needed to be a party to the suit.
Bastress maintained that his clients do not need the municipality’s involvement. He noted that the town of Harpers Ferry has expressed no opinion on the litigation and has declined to enter the suit on either side.
Defending the statute, Solicitor General Michael Williams argued that the law sets up a valid classification based on town size and leaves the door open for other small municipalities to participate. The Legislature was concerned with what happens when a very large project encounters a very small town,
Williams told the justices. So, it would find a class of towns to deal with that specific problem.
When Justice H.L. Kirkpatrick asked if any other small municipality has applied for district status, Williams acknowledged that Hill Top House remains the sole project to date. He noted, however, that the Legislature recently extended the application deadline to 2030, keeping the statutory classification open for other potential developments.
History of the Hill Top House Site
Built in the late 19th century by Black entrepreneur Thomas Lovett, the original Hill Top House hosted prominent figures, including President Calvin Coolidge, telephone inventor Alexander Graham Bell, author Mark Twain, and civil rights leader W.E.B. Du Bois. The modern redevelopment effort aims to restore the property to its historic prominence, even as the ongoing legal battle tests the boundaries of state versus municipal regulatory authority in West Virginia.
Frequently Asked Questions About the Harpers Ferry Lawsuit
Which court heard the oral arguments regarding the Hill Top House Hotel?
The West Virginia Supreme Court of Appeals heard Wednesday’s oral arguments in the ongoing legal challenge against the Tourism Development District Act.
Who originally built the historic Hill Top House in Harpers Ferry?
The late 19th-century hotel was built by Black entrepreneur Thomas Lovett and subsequently hosted notable guests such as Mark Twain and W.E.B. Du Bois.
When was the tourism development district application approved for the project?
The state Department of Economic Development approved the application from SWaN Hill Top House Hotel LLC in 2021, estimating the private investment at $138 million.
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