Vermont Rail System bought a 32-acre parcel behind Harbor Industries late last year and plans to build the facility on 19-acres in order to replace its old salt storage facility in Burlington, which was purchased by City Market and is being developed as a another location for the co-op grocer.
When the railroad began clearing the property in January to prepare for construction, Shelburne residents responded with outrage and dismay raising traffic safety and environmental concerns. Town officials brought suit to block construction the facility, arguing that it should be required to obtain local zoning approvals.
The railroad filed a counter suit in federal court arguing that the local zoning rules were preempted by federal law, which places railroad activities under the federal Surface Transportation Board.
Earlier this week Judge William Sessions ruled for Vermont Rail System, writing in his decision that federal law “preempts the Town’s pre-construction permit requirement, and enjoins the Town from enforcing any regulation that prevents the Railway from constructing its proposed facility.”
Session also denied in part the town’s request that the railroad comply with all other municipal zoning regulations, but said he would reserve judgement about whether those regulations can be applied to operations at the new facility.
“When the Railway has finalized its plans for development, and when the Town has indicated precisely which zoning regulations it intends to enforce, the Court will determine whether those regulations can survive (federal) preemption,” Session wrote in his decision.
Both sides found something to celebrate in Session’s ruling, with Vermont Rail System hailing it as an unequivocal victory for preemption and the town highlighting that Sessions left the door open for them to challenge certain activities at the facility once it begins operations.
“We are pleased the Court affirmed that (federal) preemption applies to this project,” said Selden Houghton, a vice president with Vermont Rail System, in a statement, “We look forward to completing construction and serving our Vermont community from this new facility this coming winter,and to working with the Town to address remaining community concerns.”
Shelburne Town Manager Joe Colangelo said he was encouraged that Judge Sessions “recognizes that Vermont Railway needs to settle on its final plan for the property before Shelburne can determine the health, safety, and welfare regulations that might apply.”
Houghton said that VRS will complete the rail spur and pre-construction work at the site this month, and the salt shed will be erected in August. He said “minor design changes” are ongoing, so it’s difficult to pinpoint when the company will have a “final plan” for the facility.
Colangelo voiced frustration with the railroad’s evolving plans for use of the facility saying it makes it hard to know how to protect the town’s health and safety interests.
“The Town of Shelburne continues to be concerned with Vermont Railway’s unwillingness to share complete information about their plans,” he said in an email, “All we’ve wanted throughout this ordeal is to protect the interests of Shelburne and its citizenry.”
