THOMPSON — The New York State Court of Appeals, the state’s highest court, has reinstated the Town of Thompson Planning Board’s approval of the Avon Park warehouse project after reversing a ruling from the Appellate Division, Third Department, in the long-running legal battle over the proposed development near Rock Hill.

The case had previously been heard in Sullivan County Supreme Court, where the Planning Board’s approval was upheld. That decision was later reversed by the Appellate Division, Third Department, before the Court of Appeals reversed the Appellate Division and reinstated the Supreme Court judgment.

The case involved Glen Wild Land Company LLC’s proposal to construct two warehouse buildings totaling approximately 560,000 square feet. The project, located off Route 17 near Exit 109, has been opposed by members of the Lake Communities Alliance, who argued that the proposal looked more like a distribution center than a warehouse.

According to court papers, Glen Wild submitted its application in November 2021 and later revised it in December 2021, seeking site plan approval and a special use permit from the Town of Thompson Planning Board.

The court noted that the Town Code defines both “warehouse” and “distribution center,” and that warehouses are allowed in the zoning district with site plan approval and a special use permit, while distribution centers are not.

“The Town Code’s distinction between a warehouse and a distribution center depends on the actual use of the property,” the court wrote.

The Planning Board approved the project on the condition that the property be developed and used only as a warehouse.

During the May 5 Thompson Town Board meeting, Town Attorney Michael Mednick told the board that the Court of Appeals had reversed the Appellate Division and upheld the original Sullivan County Supreme Court determination.

The ruling, Mednick said, found that the Planning Board “acted correctly and properly” in granting site plan approval and a special use permit for the Avon Park warehouse project.

Mace then asked whether the applicant would have to come back to renew the approval.

Mednick said “no,” explaining that the approval had been reinstated.

“They’re back to where they were initially,” Mednick told the board.

In the Court of Appeals memorandum, the state’s highest court found no error in the Planning Board’s decision to approve the project as a warehouse. The court also found no error in the board’s environmental review under the State Environmental Quality Review Act.

“Despite petitioners’ contention that the number and density of loading docks reflected in the project proposal ‘likely’ indicates that the property’s actual use will differ from what the Planning Board approved, we perceive no error of law or abuse of discretion in the Planning Board’s issuance of the site plan approval and special use permit limiting it to use as a warehouse,” the court wrote.

Following the ruling, the Lake Communities Alliance (LCA) said in a letter to its members that the decision was a disappointment but not a complete loss.

“After mixed legal outcomes, at the Court of Appeals — the highest court in New York — the final ruling disappointingly went against us,” the LCA stated.

The group said it challenged the project because it believed the site was not zoned for distribution center use.

According to the LCA, the project includes two warehouse centers totaling 561,600 square feet on an approximately 175-acre site, with 294 employee parking spaces, bays for 105 truck trailers, utility infrastructure and local roadway modifications.

“This project was approved by the Planning Board in July of 2022 as a warehouse,” the LCA stated.

The LCA also pointed to the Court of Appeals’ language regarding loading docks, saying the court acknowledged the project’s design could “likely” indicate a use different from what was approved.

However, the LCA said the ruling also reinforces that the project can only be used as a warehouse.

“We have a decision from the highest Court in New York which reinforces that the project may only be used as a warehouse,” the LCA stated.

Mednick told the Democrat that the ruling was a good one for planning boards across the state because it prevents them from having to speculate on what an applicant may or may not do in the future.

Mednick said the Appellate Division’s ruling could have created a difficult standard where any project could be sent to the Zoning Board of Appeals simply because an opponent claimed the applicant might use the property differently than proposed.

Mednick said the key point is that the Planning Board approved a warehouse, and that is the only use allowed under the approval.

The LCA, however, said it remains concerned about the project and other large-scale development proposals along the Route 17 corridor between Monticello and Rock Hill.

At the town board meeting, Mace said the town was still waiting for its county 239 Review on the proposed zoning definition changes and wanted to make sure there were no conflicts in the definitions.

LCA President Jessica Lansdale also said the organization had brought on a zoning attorney to review the proposed changes, including the definitions for warehouses, trucking terminals and distribution centers.

The LCA also said a 2021 traffic study based on warehouse-use traffic numbers found Rock Hill’s vehicle capacity would be maxed out once Avon Park opened, requiring major infrastructure upgrades for future development.

“Since then, development in the hamlet has increased significantly,” the LCA stated. “This could mean an updated traffic study will show Rock Hill no longer has the capacity for Avon Park traffic.”