Voices So Far

MRA lodge: Judge says special use permit not to be revoked by BOA until appeal

Karrigan Monk

Black Mountain News

Following a Nov. 30 hearing, Judge Peter Knight has granted a motion for an injunction in the ongoing case concerning the Mountain Retreat Association’s proposed lodge in Montreat.

The injunction prevents the town’s Board of Adjustment from revoking the special use permit granted to the MRA to build the lodge granted in January 2022 after nearly 50 hours of hearings. In September, Knight released a written decision overturning the Board of Adjustment’s approval of the special use permit. The Nov. 30 ruling means the permit will stay in place until a court of appeals ruling, but the MRA still may not act on the permit by doing any work related to the project.

A group of families that opposed the lodge, saying it would negatively impact their properties, filed a brief with the Buncombe County Superior Court in January 2023 seeking to have the special use permit revoked. A hearing was held in May, ahead of Knight's September ruling.

The MRA announced plans to appeal Knight’s decision in October, while the town of Montreat said it will not file an appeal.  

Montreat Stewards has been in significant opposition of the MRA's new lodge in an effort to save three historic buildings.

The Nov. 30 hearing was for Knight to decide if there should be an injunction that would prevent the Board of Adjustment from revoking the special use permit.

In his argument to the court, MRA attorney Stephen Cox said there would be “no harm” caused by Knight granting the injunction.

“Granting the injunctive relief request would cause no harm because we’re going to treat the special use permit as suspended,” Cox said. “On the other hand, not granting it could cause significant harm because the town could act to revoke the permit and thereby moot our appeal and deprive us of meaningful appellate review.”

John Noor, the attorney representing the petitioners, said the harm would not be to the MRA, but rather to the homeowners involved in the litigation.

“We don’t think they need the injunction,” Noor said. “We also don’t think that irreparable harm would be suffered by them if the injunction was not entered. In fact, we think it’s the opposite due to the condition of the home that my clients own that is 16 feet from the end of the disturbance area.”

Though the town is not appealing the court’s decision, attorney Derek Allen was present at the Nov. 30 hearing representing the town.

Allen said having the injunction in place would save “months of time” for everyone involved.

The MRA was granted a special use permit in January 2022 to build a new lodge. This permit is now the subject of an appeal process.

“Having the stay and letting the appeal go forward I believe saves everyone time as a practical matter as opposed to going back down to the Board of Adjustment to enter an order that gets appealed back up to the court with no record other than this court's order and two parallel appeals going forward at that time,” Allen said.

The issue of whether or not the MRA is able to work on the property without the special use permit also came up during the hearing.

Cox said that even if the special use permit was revoked, the MRA would be able to develop the property in question in other ways.

“Let’s assume for example that the town revoked our special use permit tomorrow and we appealed it,” Cox said. “Nothing would prevent us from trying to get other development approvals or taking other actions with respect to the property. That is beyond the scope of this motion and beyond the scope of the proceeding.”

Noor said the MRA should not be able to do anything related to the lodge on the property because of the petitioners win in the Superior Court.

“I’m not saying that the MRA couldn’t go back and propose an entirely new project for this particular property site,” Noor said. “What I am saying is we were able and successful at the Superior Court level to have the decision overturned. We should get the benefit of that in that they cannot proceed with any related development approvals to this specific project.”

Cox said the MRA has no intention of doing any work related to the lodge until the appeal process is finalized.

MRA files appeal in lodge case, town will not appeal

Karrigan Monk

Black Mountain News

The Mountain Retreat Association will be appealing the Buncombe County Superior Court’s decision to overturn the granting of a special use permit by the town of Montreat.

The permit was granted by the town’s Board of Adjustment for the MRA to build a new lodge situated between Assembly Drive and Georgia Terrace.

Montreat Town Manager Savannah Parrish said the town will not file an appeal. The Board of Adjustment did not mention the permit or case during its Oct. 26 meeting.

In a news release announcing the appeal, the MRA said the “executive committee, acting on behalf of the Board of Directors, made the decision to appeal.” Charlotte firm Robinson Bradshaw will act as lead counsel for the appeal process.

MRA President Richard DuBose said in the news release that a variety of factors were considered when deciding to file for the appeal.

“Most pressing, of course, is the conference center's need for this new lodge in the service of our mission and ministry,” DuBose said.

Priscilla Hayner, a member of one of the families who has property directly adjacent to the proposed lodge and rallied against it, said in an emailed statement to Black Mountain News ther the opposition will “robustly defend our position in the Court of Appeals.” She said they are “confident” the decision by the Buncombe County Superior Court will be upheld and show that the MRA “lacked the basis for a permit in law, in substance and in violation of due process.”

Hayner said she and the other members of the opposition are “very disappointed” in the decision to appeal.

“We are not against construction or the MRA expanding and improving its housing,” Hayner said. “Rather, we are against the polluting of Flat Creek, the unnecessary cutting down of 60 mature trees, the documented danger to children in Robert Lake Park and the replacing of historical buildings with a large modern hotel entirely out of proportion with the very character of Montreat.”

In the MRA’s news release, DuBose said the decision to appeal was made without input from town officials.

“We believe that the implications of the judge’s order hold high importance for future governance in Montreat, but the town considers other factors,” DuBose said. “Many municipal councils and mayors don’t go as far in defense of their decisions as Montreat already has and we’re grateful for the town’s support.”

In a statement in the weekly Montreat Minute newsletter, the town said its decision not to appeal will minimize resources, both "human and financial" needed for the appeal. The statement said the mayor and commissioners "stand solidly behind" the Board of Adjustment's decision.

“The residents who serve on the Board of Adjustment are of the highest caliber and should not have been subjected to the harsh decision from the court,” Mayor Tim Helms said in the statement. “Judge Knight’s opinion that because they had donated monies to MRA in the past they made a biased decision is unrealistic and untrue. In a small town like Montreat, it would be extremely difficult to find a group of people who have not supported MRA in some manner."

Helms said in the statement the town respects the MRA's decision to appeal, but "does not feel it prudent to continue using taxpayer funds" to pursue the case further.

Hayner said the town’s decision not to appeal is “a correct decision.”

“The town government should represent all taxpayers and take into account all of the varied views in Montreat rather than representing the interest only of those who wish to see a very large new development in Montreat,” Hayner said.  

After a May hearing, Buncombe County Superior Court Judge Peter Knight released a written decision in September, overturning the Board of Adjustment’s January 2022 approval of the special use permit.

Knight wrote that some board members had direct ties to the MRA due to financial contributions made to the organization and therefore violated due process rights.

The permit was initially granted in January 2022 after nearly 50 hours of hearings.

In January 2023, the Hayner and Jones families filed a brief with the Buncombe County Superior Court and said the lodge would negatively impact their property.

Hayner said she and the other opponents to the lodge are open to speaking with the MRA about other options.

“We remain keen to have a conversation with the MRA on the many possible options that might allow them to move forward with adjusted plans, rather than following narrowly down a long and combative legal road that is fixed on their one original design,” Hayner said. “Let’s come together as a community. That is our call.”

MRA lodge: Timeline of events leading to its rejection in court. What's next?

Karrigan Monk

Black Mountain News

After nearly 50 hours of hearings over multiple sessions from October 2021 to January 2022, the Montreat Board of Adjustment granted a special use permit for the Mountain Retreat Association to build a new lodge.

More than a year later in May 2023, a Buncombe County Superior Court judge overturned the permit. In September, Judge Peter Knight handed down a written decision pinpointing financial donations from board members to the MRA and a “not competent” traffic engineer testimony as major reasons for the reversal.

The process had cost the town of Montreat $101,000 — $87,138 in attorney fees and $14,792 in staff fees — through the end of 2022, Mayor Tim Helms told the Montreat Board of Commissioners in February.

MRA President Richard DuBose said while the MRA will not comment on the specifics of the decision, he is disappointed.

“The board granted the MRA a permit to build a lodge on property that has been the location of lodges for decades,” DuBose said. “We weren’t asking for anything unprecedented, and in fact presented a plan that by its very nature would help strengthen and sustain the Montreat that we have. The board understood this. Montreat residents understand this.”

Priscilla Hayner, part of the group opposing the lodge, said the scope of the project was the main objection.

“There’s nothing inherently wrong with constructing new lodges in Montreat,” Hayner told Black Mountain News. “It was the size and the nature of this one that made people sort of extremely uncomfortable and unhappy.”

Origins of the MRA lodge

The first ideas for the lodge emerged in 2018 when the MRA began a study looking at its existing 13 lodges, according to the MRA website. The study would look at revenue of the lodges as well as the conditions of the lodges and guest satisfaction.

In 2019, the MRA began working toward the findings of the study, including redeveloping property the MRA already owned. After looking at other properties, the MRA decided to start work on a parcel of land situated between Assembly Drive and Georgia Terrace that already housed three structures: Galax House, Chestnut Lodge and Lord Apartments.

The MRA contracted Samsel Architects to start work on a new concept. DuBose told Black Mountain News in an emailed statement that it was around this time he contacted the Hayner family asking if they would sell their property, which sits adjacent to the new proposed lodge site. DuBose said the family declined, and the conversation ended amicably. Priscilla Hayner said the conversation ended amicably as well, but that DuBose did not mention plans for a lodge, and no one in the Hayner family asked more.  

“While we made no public announcement during this period of preparation, we were not proceeding in secrecy, either,” DuBose said.

By November 2020, a new single, larger lodge to replace the three existing was proposed with conceptual designs. DuBose said initial estimates for the lodge totaled more than $12 million, which the MRA expected to grow. He said with legal fees and inflation the cost of the lodge has “undoubtedly increased,” but the MRA will not know a final number until the end of the process.

Hayner said she and her family found out about the new lodge in February of 2021.

According to previous Black Mountain News reporting, the Hayner family, along with the Jones family who also own property near the proposed lodge, started a petition against the lodge. By May 2021, this petition had 680 signatures.

In October 2021, a quasi-judicial hearing began with the Montreat Board of Adjustment to either grant or deny the MRA a permit to build the proposed lodge on the site.

Throughout sessions in October, November, December and January of the next year, experts took the stand for hours at a time. They were questioned by lawyers from both the MRA and the opposition.

After nearly 50 hours of hearings and less than two hours of deliberation from the board, the MRA was granted a permit for the lodge with a vote of 5-2 in January 2022. Hayner said it was “frustrating” and “shocking” that a decision was come to so quickly.

The appeal

Later that month, the opponents for the lodge filed an appeal with the town to overturn testimony from the zoning administrator. In March 2022, the Board of Adjustment dismissed the appeal.

The next month, the Hayner and Jones families announced their intent to appeal the decision to Buncombe County Superior Court.

In January 2023, the opposition families filed their brief, arguing that the decision was “arbitrary and capricious” and that due process rights were violated.

The brief revealed that five of seven board members had made financial donations to the MRA before and while on the Board of Adjustment. According to the brief, three board members, identified as Board Members 1, 2 and 3 contributed more than $355,000 between 2005 and 2022.

Two other board members, Board Members 4 and 5, who were appointed after the hearing but voted to approve the lodge, made $1,625 in donations from 2007 to 2022 and $700 in donations from 1997 to 2006, respectively.

In March 2023, both the MRA and the town filed briefs of their own arguing due process rights were not violated and the financial contributions were not made directly in support of the lodge and no member had a financial interest in the outcome.

On May 3, a Buncombe County courtroom was packed with Montreat residents as both sides argued their cases. By the end of the month, Knight had informed all parties that he would be overturning the Board of Adjustment’s decision to grant the permit.

On Sept. 18, Knight signed his written decision and handed it down.

“The BOA erred as a matter of law by violating petitioners’ constitutional due process rights to an impartial decision maker when at least four of the seven members who participated in the quasi-judicial hearing were financial contributors to the applicant and did not disclose this information prior to participating in the hearing,” Knight wrote.

He wrote the contributions were evidence of a “close associational relationship” and were in violation of North Carolina general statue 160D-109(d).

Knight’s decision also said the board made an error in using the testimony of the MRA’s traffic engineer because the testimony was “not competent” and “not sufficiently trustworthy.”

The traffic engineer relied solely on evidence provided to him by DuBose and did not verify it.

What's next?

The judge's order does not prevent the MRA from submitting “further or future application or petition.”

DuBose said the MRA is meeting with its board and attorneys to decide on next steps for the property and has “several” options to consider.

“Our property, because it is at the geographic center of our campus, in the center of town, and because it is one of the most underutilized, will be developed,” DuBose said. “We still believe that our planned use is the best and most missional use of that space.”

Hayner said she and the other members of the opposition remain open to working with the MRA to find a “win-win” solution.

“We’re not against construction,” Hayner said. “We think there’s a way for the MRA to achieve what it feels like is necessary to achieve for its own programming ends, which is more accommodation in Montreat and maybe a different kind of accommodation in Montreat. We’re not against that.”

Hayner also said there is a lot of “good will” in Montreat toward the MRA and she wants to continue to support that.

She said she does not believe the legal proceedings are helping Montreat or the MRA and that “there is a better way to get to a positive place.”

“I think we’re all ready to find a positive process forward,” Hayner said. “There’s no intention to have bad will. We are first in line to support the MRA and I hope we’re able to come together to find the right path forward.”

Judge: Montreat board members' ties to MRA force overturning of lodge approval

Karrigan Monk

Black Mountain News

Board members who voted to approve a proposed development in Montreat had direct ties to the organization behind the project, a judge ruled in overturning the board's decision.

Buncombe County Superior Court Judge Peter Knight in September released his written decision that overturned the Montreat Board of Adjustment's January 2022 approval of a new lodge proposed by the Mountain Retreat Association, questioning the impartiality of the board.

“The BOA erred as a matter of law by violating petitioners’ constitutional due process rights to an impartial decision maker when at least four of the seven members who participated in the quasi-judicial hearing were financial contributors to the applicant and did not disclose this information prior to participating in the hearing,” Knight wrote.

The order said these contributions were evidence of a “close associational relationship” between board members and the MRA, a violation of North Carolina general statute 160D-109(d).

When asked why Board of Adjustment members with ties to the MRA did not step down from the decision-making process involving the MRA's proposal, Montreat Town Manager Savannah Parrish told Black Mountain News that the town does not have a comment at this time.

MRA spokesperson Tanner Pickett said the MRA is considering what to do next after receiving the judge’s order.

“Our Board and staff leadership are working with our legal counsel to better understand its impact and implications so we can weigh options and determine the appropriate next steps,” Pickett said in an email to Black Mountain News.

The permit for the lodge was initially approved by the Board of Adjustment in January 2022 after nearly 50 hours of Board of Adjustment hearings.

A group of families, namely the Hayner and Jones families, opposed the lodge and said it would negatively impact their property. In January 2023, they filed a brief with the Buncombe County Superior Court.

A hearing was held May 3 after both the MRA and the town of Montreat filed responses to the original brief. Later that month, Knight informed attorneys of all parties involved that he would be overturning the special use permit granted by the town of Montreat’s Board of Adjustment to the MRA.  

The lodge would have sat between Assembly Drive and Georgia Terrace. Outlined at 40,000 square feet, it would have included 40 guest rooms with private baths, a courtyard area and a 30-space parking garage.

The building of the lodge would have meant the demolition of three original structures on MRA property: Galax House, Chestnut Lodge and Lord Apartments.

The opposition group argued that their due process rights were violated because several Board of Adjustment members donated to the MRA, as well as undisclosed ex parte communications. The ex parte communications involved a board member responding to an email blast sent out by the MRA expressing her support of the project.

Knight's written decision said the petitioners’ due process rights were not violated by the email communication.

Knight's decision also said the board made an error in using the testimony of the MRA’s traffic engineer because the testimony was “not competent” in addition to being “not sufficiently trustworthy.”

According to his written decision, the engineer “relied exclusively on the verbal representations of the applicant for the data supporting his opinion” and “did not independently investigate or verify the data provided by the applicant.”

The decision said the matter will be reversed and remanded back to the Board of Adjustment because the board’s decision was not supported by “competent, material and substantial evidence.”

“Even if the record was supported by competent, material and substantial evidence and did not include the above-identified non-due process errors of law, the violation of petitioners’ due process right to an impartial decision maker would still require that the decision be reversed," Knight wrote.

The order does not prevent the MRA from submitting “further or future application or petition.”

Opponents of lodge in Montreat cite donations by members of board that approved MRA's plan

Karrigan Monk

Black Mountain News

The ninth floor courtroom of the Buncombe County Courthouse was packed the morning of May 3 for a Superior Court hearing about the proposed Mountain Retreat Association lodge in Montreat.

The lodge was approved by the town’s Board of Adjustment after nearly 50 hours of hearings in January 2022. A group of families, namely the Hayner and Jones families, opposed the lodge, saying it would negatively impact their property. They filed a brief with the Buncombe County Superior Court in January of this year.

The site of the lodge, situated between Assembly Drive and Georgia Terrace, would do away with three original structures on the MRA property: Galax House, Chestnut Lodge and Lord Apartments. Although 60 trees will need to be removed to accommodate the lodge, the MRA said it plans to replant 80. 

The lodge itself, outlined at 40,000 square feet, includes 40 guest rooms with private baths, a courtyard area and a 30-space parking garage. 

Judge Peter Knight heard arguments from the petitioners, the MRA and the town of Montreat during the May 3 hearing.

Attorney John Noor, representing the petitioners, said his clients' due process rights were violated as several members of the Board of Adjustment made contributions to the MRA, including one board member who had donated more than $350,000 and continued donating through 2022.

Noor said there “cannot be a stronger connection” than financial contributions and that his clients did not have the benefit of disclosure of these contributions.

He also said there were undisclosed ex parte communications from a board member responding to an email from the MRA expressing their support of the organization. This communication occurred before the hearing regarding the permit to build the lodge as well as before the permit was filed.

Knight said he did not “see any difference” between meeting and talking in a grocery store and the email.

Noor said the board member could have and should have disclosed the communication to the board prior to the hearing.

He argued that there was a difference between what the board originally said and the lawyer-drafted order that was presented. Knight asked why this would not be OK, considering the fact the board members are not lawyers and were assisted by council. Noor said the board could have asked for help before announcing their final decision.

Noor said that, for the traffic study, methodology was “created” for the project that had never been used before and that the appraiser did not evaluate the petitioners property properly.

“You have to show your work,” Noor said. “How’d you get there?”

In response to Noor, the MRA’s attorney, T.C. Morphis, said petitioners did not submit contradicting traffic evidence and that it would put an “intolerable burden” on the appraiser if they were to appraise every single house affected by the lodge.

Morphis called the town “special” and said that its uniqueness needed to be taken into account.

“Everybody in this room would say Montreat is special,” Morhpis said. “In the matter of law, Montreat is special.”

Cindy Rice, the town of Montreat’s attorney, said it was “unusual” for her to be at the hearing, but that the town felt “drawn” to be represented so the judge could understand the reasoning behind the Board of Adjustment’s decision.

As for the donations that were made by board members to the MRA, Rice said there is a “big distinction” between gifts made to the MRA as a whole and those made to the special use permit project. She said the gifts made by board members were made to the former and not the latter.

She also argued that no board member had a financial interest in the outcome of the project and the petitioners gave no evidence that any board member did.

Rice noted that the board member who was the second largest contributor to the MRA on the board voted against the permit and therefore there was no conflict of interest.

She said there was no evidence that any one board member “tainted the bunch” and that donations were “so far removed from time and scope” they did not impact the vote.

The judge is expected to make a decision on whether or not to uphold the Board of Adjustment’s decision to grant the MRA the permit to build the lodge within the next month.

Brief filed in Superior Court against MRA, town of Montreat

Karrigan Monk

Black Mountain News

A petitioners’ brief has been filed with the Buncombe County Superior Court in the matter of the proposed Mountain Retreat Association lodge in Montreat.

The brief, filed by lawyers representing the Hayner, Jones, Berry and Fox families, said the Jan. 6, 2022, decision by Montreat’s Board of Adjustment to allow the lodge to move forward with construction should be overturned. The brief said the decision was “arbitrary and capricious, and violated Petitioners’ due process rights.”

The brief said that a total of five board members made financial donations to the MRA before and while on the Board of Adjustment.

According to the brief, three board members, identified as Board Members 1, 2 and 3, made more than $355,000 in contributions to the MRA between 2005 and 2022.

Two other board members, Board Members 4 and 5, who were appointed after the hearing, but voted to approve the lodge, made $1,625 in donations from 2007 to 2022 and $700 in donations from 1997 to 2006, respectively.

Tanner Pickett, vice president for sales, marketing and communications of the Montreat Conference Center, said these donations were made public and available to the court.

“What matters is that, at every hearing of the board, members were asked if they could impartially rule on these issues,” Pickett said. “At every hearing, the members affirmed that they could. The hearing was conducted fairly, judged fairly, and the record supports that conclusion.”

The site of the lodge, situated between Assembly Drive and Georgia Terrace, would do away with three original structures on the MRA property: Galax House, Chestnut Lodge and Lord Apartments. Although 60 trees will need to be removed to accommodate the lodge, the MRA plans to replant 80. 

The lodge itself, outlined at 40,000 square feet, includes 40 guest rooms with private baths, a courtyard area and a 30-space parking garage. 

The brief maintains the hearing was not conducted fairly and should be overturned because of a failure to “present competent, material and substantial evidence” in compliance with the town’s zoning ordinances.

Pickett said the MRA will “respond to the Petitioners’ brief promptly and are pushing for a speedy resolution as we have been all along.”

He said the project is moving forward with designs and fundraising and has been since the permit was granted in March.

Priscilla Hayner, a member of one the families in the petition, said the hearing “lacked” due process and “fundamental fairness.”

“Assuming that the judge would see that because it’s pretty clear as set out by the lawyer,” Hayner said. “We’ll see what that decision is, but I think there’s no question based on the information and the brief that the process as a whole was lacking and required due process and protections in basic fairness.”

Hayner said there are several reasons why preventing the lodge is important to her, including historical preservation and environmental issues. She said she was also concerned that several properties, including her families, will be damaged by the building of the lodge. Hayner said she also feels the lodge is not the right “feel” for Montreat.

“There’s other kinds of construction that would be perfectly fine that give them what they need,” Hayner said. “But this is the wrong fit. … Montreat is such a special place with such a special feel to it.”

She said she is not the only one who feels this way and pointed to the “over 100 properties” that have put up signs against the lodge.  

“We all care about Montreat,” Hayner said. “I know the MRA cares about Montreat. I know that. The folks that have been working against the hotel care about Montreat. I think we all need to work to strengthen Montreat as a town, as a community, and that includes the MRA directly.”

Montreat Interim Town Manager Ben Blackburn said the town “takes the position that it does not discuss matters involving pending/on-going litigation.”

Legal fees and politics: Montreat Board of Commissioners hears concerns from public

Ezra Maille

Black Mountain News

MONTREAT - Discussions of fees, budgets and governmental systems made up the majority of the Montreat Board of Commissioners meeting May 12. 

The commissioners also completed two appointments to town boards at the meeting. 

"The legal battle over the lodge is draining the finances of this town," said Philip Arnold, a member of the town audit committee, addressing the board. "I have watched as the town has had to write check after check to lawyers, spending money we don't have, money that's not in the town budget."

At the Board of Commissioners meeting in April, Mayor Tim Helms announced the cost of legal fees for the town for the Mountain Retreat Association's lodge hearings totaled more than $100,000. 

The Montreat Board of Adjustment on Jan. 6 approved a special use permit for the MRA to build a new lodge. Since then, the opposition to the lodge has stated intentions to fight the decision.

As the opposition continues to work on an appeal of the Board of Adjustment's decision with superior county court, community members such as Arnold have reservations about mounting legal fees. 

"I know this council does not want to raise our property taxes," Arnold said. "We're a little town with limited resources."

Arnold proposed the idea that for the future, the opposition to the lodge reimburse the town for legal expenses incurred as hearings continue.

Other community members also addressed the board about the town's current budgetary needs, citing concerns of a late audit. In December, Montreat was placed on the state treasurer's Unit Assistance List due to the town having not submitted an annual audit for fiscal years 2020 and 2021. 

"We're in this position financially in part because our cash reserves, our fund balance, seem to have dropped quite a lot," said Mary Standaert, a Montreat resident who addressed the board. "Under normal circumstances, we would have the 35% that was mandated by this council in cash reserves."

Although the current budget has yet to be finalized, Ben Blackburn, interim town administrator, said the town has estimated that the cash reserves will be at 32%. This fund pays for expenses such as the legal fees incurred during the MRA hearings. 

Regardless of the Board of Adjustment's decision on the lodge hearings, Commissioner Kent Otto encouraged the public to treat the board members favorably. He said since the Board of Adjustment is made up of volunteers, they should be treated with respect as members of the Montreat community.

"It frustrates me when we don't have our house in order," Otto said. "I'm disappointed with some of the attacks that we've had."

Community members also raised concerns over the new system of government the town has been considering, moving from a Board of Commissioners and town administrator system to a Town Council and town manager system. Community members questioned if the new system would influence the political landscape. 

Helms explained that currently, the town functions nearly identically to a council-manager system with very few differences. 

"Right now, if I were influenced politically, I could steer a lot of things the way the government is set up now but I don't do that," Helms said. "The previous mayor didn't do that."

Historically, the town has trained town administrators to go on to become town managers. Helms said he hopes the new system will attract a more permanent position for potential town managers. 

Finally, the commissioners completed two new appointments to town boards: Allen Crawford to the Planning and Zoning Commission and Danny Sharp from alternate to full time member of the Board of Adjustment. 

The Montreat Board of Commissioners plans to meet May 26 at 6 p.m. for a budget workshop to continue to discuss finances. 

'This is sobering': Montreat Board of Commissioners approves 6 budget amendments

Ezra Maille

Black Mountain News

Montreat Mayor Tim Helms delivered information concerning the town's legal fees at the April 14 Board of Commissioners meeting.

The Montreat Board of Commissioners approved six budget amendments at its April 14 meeting, covering legal fees and reallocating funds to various departments. 

"This is sobering," commented Mayor Pro Tem Tom Widmer after all the amendments had been approved.

These amendments covered increased expenses incurred by the sanitation department, salaries and wages and additional legal fees pertaining to the Board of Adjustment hearings to grant the Mountain Retreat Association a special use permit for its new lodge.

Prior to the Board of Commissioners meeting, the town's bill for legal fees pertaining to the hearings was $74,000. Mayor Tim Helms announced the town just received another bill for $25,763, putting the total cost at more than $100,000. 

Pay for the town employees present throughout the hearing process totaled $14,792, according to Helms.

As the opponents of the new lodge file an appeal of the Board of Adjustment's decision with superior court, the town anticipates additional legal fees. Helms read an estimation, saying after superior court, the total legal fees could range from $121,555 to $124,555 of taxpayer money.

"We're trying to serve this community and not raise taxes," said Commissioner Kent Otto.

Darlene Carrasquillo, the town's finance officer, said after the town received this most recent bill for legal fees, more funds needed to be reallocated. She said the budget money comes from revenues that were underbudgeted. 

"While we underbudgeted expenses, fortunate for us, we also underbudgeted some of the revenues," Carrasquillo said. "We're now able to take some of the money we said we needed for revenues and move it in these expenses."

Carrasquillo informed the board the town required $80,000 to cover legal fees as the Board of Adjustment appeal moves to superior court. She said this amount will factor into the total estimation provided by Helms.

"We need an additional $80,000 just to get us through what we know is coming in legal fees," Carrasquillo said. "Anything over and above that we're going to have to also address but for now, $80,000 more is a given."

The board also approved two budget amendments to pay for increased expenses incurred by sanitation. According to Carrasquillo, by the end of February, 99% of the department's budget had been used. 

For the first amendment, Carrasquillo said the money would come out of the police department's budget. She said Chief David Arrant had been helpful in accommodating for funding to be moved from his department's budget to sanitation.

Due to increased gas prices, the sanitation department was hit especially hard. For expenses applied to gasoline and auto supplies, salaries and wages and a dumpster contract, $10,300.58 was required to be moved the police department's budget.

"These costs are fixed," Carrasquillo said. "We can't not have dumpster service; we can't not have gasoline."

For all the various budget amendments, Carrasquillo said the town would not have to dip into the general fund, the main operating fund for Montreat.

Carrasquillo expressed her appreciation to the various departments that had lent a hand in reallocating budgets. She said for the next fiscal year, after seeing how well staff worked together, things should go more smoothly. 

"These budget amendments may be confusing but it's putting money where it's supposed to be and can be payed out properly without the auditors going crazy," Helms said.

Montreat Board of Adjustment dismisses appeals in MRA special use permit follow up

Ezra Maille

Black Mountain News 

MONTREAT - The Montreat Board of Adjustment voted March 16 to dismiss appeals submitted by the opposition to the Mountain Retreat Association's new lodge in a special call meeting. 

Attorney Cindy Rice represented the town, presenting her argument for dismissal of the appeal.

In a 6-1 vote — Bill Solomon was the only board member to vote no — the board dismissed the appeal without hearing it after arguments from the town's attorney, the attorneys for the MRA and the attorneys representing Kate Hayner and the Jones family, the opposition to the MRA. 

"I attended the hearings, I reviewed the proposal," said Board of Adjustment Chairman Mark Spence. "The order before the board accurately reflects, in my opinion, that determination made by the board to approve the MRA's special use permit."

On Jan. 6, the Board of Adjustment approved a special use permit for the MRA.

Two new board members, Arrington Cox and Danny Sharpe, who were voted onto the board Jan. 13, oversaw the proceedings with the rest of the board. Board member Eleanor James was absent, represented by alternate David Neel. 

"We now have to look at next steps in terms of a bigger appeal," said Priscilla Hayner, Kate Hayner's sister. "We haven't decided on it, but we will decide quite shortly."

Though attorneys James Whitlock, representing Kate Hayner, and John Noor, representing the Jones family, filed separate appeals, they combined arguments due to the near identical nature of the appeals.

The appeals sought to overturn the testimony of Town Zoning Administrator Scott Adams, given Dec. 13 as part of the initial hearing process to grant the MRA a special use permit for its new lodge. 

The town and the MRA each made motions to dismiss the appeals. All parties were given a chance to present arguments. 

Prior to hearing arguments, the Board of Adjustment's attorney for legal counsel Brian Gulden explained the process and purpose of the special meeting. Gulden read from the state ordinance on quasi-judicial proceedings, explaining that the meeting was not a time to debate facts presented in the original hearing. 

"Today, after many hours of hearings and a vote by a prior board, there was an order drafted that reflects the board's decision," Gulden said. "This board is here today to approve that board's decision. We don't get to rehash the facts. We don't get to debate."

Attorney Cindy Rice, representing the town, cited four reasons for dismissing the appeal, saying she needed to prove only one as all four were grounds for dismissal. 

Rice said the appellants stated Adams' testimony was a final determination, something she said was untrue. If it had been Adams who made the final determination, Rice said, it would have been his decision and not the board's in writing. 

"The second issue is we do not believe the appeals were timely filed," Rice said. 

The third issue cited by Rice addressed the doctrine of collateral estoppel. In simple terms, the doctrine states that a settled issue cannot be raised again. 

Rice explained that since the decision has already been given by the Board of Adjustment, the appellants cannot return to the same board for re-discussion. She said the appellants could file an overall appeal of the board's decision to a higher, county court, but not to the Board of Adjustment.

"They don't get a second bite at the apple," Rice said. 

Finally, Rice said the appeal was premature. 

New faces appeared on the Board of Adjustment with newly appointed members such as Arrington Cox ruling on the dismissal of the appeal.

Morphis, in presenting arguments for dismissal on behalf of the MRA, kept his comments brief, agreeing with Rice. He added that the opposition's appeals were now "moot," meaning the issue no longer stands before the board. 

Whitlock began the appellants' argument with a few additional comments from Noor. Whitlock argued that a final determination from Adams was made possible by the transcription of the hearings from the court reporter. 

"It was recorded, it was sworn testimony offered at a public hearing and in fact was recorded in writing," Whitlock said. 

According to Montreat Mayor Tim Helms at a Board of Commissioners meeting on March 10, the town has spent $74,000 on attorney fees for the Board of Adjustment hearings. The series of hearings spanned nearly 50 hours and eight sessions over the course of four months.

With the permit approved, the MRA has begun next steps, according to the organization's President Richard DuBose on March 7. 

The lodge plans to remove three original structures on the MRA property: Galax House, Chestnut Lodge and Lord Apartments. Sixty trees will also need to be removed, but the MRA plans to replant 80. 

Planned to be built on the lot between Assembly Drive and Georgia Terrace, the lodge plans for 40 guest rooms with private baths, a courtyard and a 30-space parking garage. With the inclusion of the half-basement and garage, the area totals 40,000 square feet.

"At the end of the day, this building stands to support our mission and ministry for the next 50 to 100 years," DuBose said. "We're prepared to do what it takes to make sure we can do it."

Priscilla Hayner said the unintended consequences of dismissing her family's appeal before hearing its content will be significant for Montreat. She said the town will have to deal with the ramifications if development will be allowed unrestricted as a result of Adams' testimony.

"That has implications for Montreat as a whole," Prisicilla Hayner said. "If we appeal it would be a very strong case."

Montreat Stewards appeal Board of Adjustment decision to allow MRA lodge

Opponents to the Mountain Retreat Association's new lodge have announced intent to file an appeal of a decision by the Montreat Board of Adjustment to grant the MRA a special use permit. 

The appeal will need to be submitted to the Buncombe County Superior Court based in Asheville within the next three weeks.

The opposition made up of Kate Hayner and the Jones family, whose properties sit adjacent to the site of the lodge, released a statement from the Montreat Stewards, a group of Montreaters organized by the Hayner family to oppose the lodge. 

"There is a very strong legal case to overturn the board’s decision," the statement read. "Procedurally, the Board of Adjustment committed numerous due process violations."

The Stewards say the board failed to make its decision based on the evidence presented during the hearings and came as a result of a discussion that ignored expert testimony. Additionally, Stewards say the written order of the board's decision contains significant errors and "misrepresentations" of the board's deliberations. 

"We certainly wouldn’t be appealing the case if we did not believe firmly that the evidence is absolutely in our favor, based on what was presented in the hearing," Priscilla Hayner, sister to Kate Hayner, said in an email.

The Board of Adjustment reached its decision Jan. 6 after roughly 50 hours of hearings spanning four months and eight sessions. The board voted 5-2 to approve the special use permit. 

The written order of the board's decision was delivered March 25. According to Marc Shimberg, trial court administrator for Buncombe County, the opponents have 30 days to file an overall appeal to superior court. 

"Then we have to get a transcript of the hearing," Shimberg said. "Once the transcript is filed, we basically can go ahead and set that for hearing."

Shimberg said the court will hear arguments from both parties before ruling on the appeal. Although he said the county doesn't received many appeals of this nature, and with the other cases already in its docket, it could be a while before the appeal is heard.

The Stewards say the appeal process will likely extend into the fall. 

This latest announcement by the opposition came just three weeks after the Board of Adjustment dismissed an appeal of specific testimony heard during the hearings. On March 16, the board voted to dismiss an appeal of Town Zoning Administrator Scott Adams' testimony without hearing it. 

"The parties in opposition to the MRA hotel are greatly disappointed in the process and the outcome of the lengthy BoA hearing," the Stewards stated. 

In January, MRA President Richard DuBose said while the organization hoped it wouldn't come to an appeal, the MRA was prepared in the event it did. 

"The essential question is whether the town of Montreat is going to allow us to develop this lodge on property that we've used for decades for lodging our guests for our mission and ministry," DuBose added. "That question was answered."

The site of the lodge, situated between Assembly Drive and Georgia Terrace, would do away with three original structures on the MRA property: Galax House, Chestnut Lodge and Lord Apartments. Although 60 trees will need to be removed to accommodate the lodge, the MRA plans to replant 80. 

The lodge itself, outlined at 40,000 square feet, includes 40 guest rooms with private baths, a courtyard area and a 30-space parking garage. 

The Stewards say more than 1,200 people signed a petition voicing opposition to the lodge. 

"To allow this unjust decision to stand would be unacceptable," the Stewards wrote. "The large, modern construction that the MRA envisions would do unmeasurable damage to Montreat."

Black Mountain News, April 2, 2021:  Montreat to review zoning ordinance revisions, town petitioning new lodge