Vermont Town Accused of Retaliation in Property Seizure Attempt

COLCHESTER, V.T. — The town of Colchester is asking the Vermont Supreme Court to overturn a lower court ruling that found town officials acted in bad faith when they attempted to seize a private waterfront property through eminent domain.

The legal battle centers on a parcel located at 885 East Lakeshore Drive along the Malletts Bay waterfront. The property is part of a larger, unsubdivided area that includes rental units, seasonal housing, and single-family homes. It is not used as a permanent residence.

Dispute Dates Back to 2022

The case began in 2022, when Mongeon Bay Properties, the owner of the parcel, sued the town over its attempt to take the land. Colchester had sought to acquire the property, claiming it was necessary to address environmental and liability concerns tied to stormwater infrastructure located beneath the site.

The town has maintained an easement on the property for years, allowing it to operate and maintain a stormwater drainpipe and catch basin. In late 2021, the town introduced plans to build a treatment facility on the land. The facility would filter phosphorus and other pollutants before releasing water into Malletts Bay.

According to court filings, Colchester argued that the pipe’s location beneath a rental structure on a steep slope made the site risky. “Having a seasonal rental property on the side of a steep slope, and on top of a large stormwater pipe presents a significant financial burden to the town and its taxpayers,” Town Manager Aaron Frank said previously

Judge Finds Retaliation Motive

But in March, Superior Court Judge Samuel Hoar Jr. ruled against the town. He halted the condemnation and found that the move appeared retaliatory. Hoar’s ruling pointed to a previous dispute between the town and the property owner over repairs to the same drainpipe, which ruptured during a storm in October 2019.

That earlier legal conflict ended in a settlement for an undisclosed amount. However, Hoar noted that the town began condemnation proceedings before the case was resolved. In his ruling, he cited a town attorney’s comment to the property owner in 2020: “If you sue the town we will take your house by eminent domain.”

Hoar concluded the town’s action was not in good faith and called into question the true motive behind the land seizure.

Town Appeals to Vermont Supreme Court

Colchester is now appealing the decision to the Vermont Supreme Court. Town attorneys argue that the lower court failed to consider key evidence that justified the taking. They claim there is “considerable evidence demonstrating the town’s position that it was necessary to take the property.”

The appeal also asserts that the judge improperly replaced the town’s planning judgment with his own.

As of now, the state’s highest court has not scheduled a hearing date for the case. Neither Aaron Frank nor Mongeon Bay Properties’ attorney, A.J. LaRosa, provided comments on the ongoing appeal.