A Harpers Ferry resident is suing state officials over a state law called the Tourism Development Act, which paved the way for the long-discussed restoration of the Hill Top House Hotel.

The lawsuit was filed on behalf of Carole Carter in Kanawha Circuit Court last week, where lawsuits against the state government are decided. Her attorney is Bob Bastress, who regularly represents clients dealing with state constitutional issues.

The lawsuit names Secretary of Commerce Ed Gaunch and Assistant Director of Commerce Mike Graney in their official capacities.

The lawsuit challenges the Tourism Development Act, which 2020 passed, which allows the state to approve up to five tourism development districts for companies investing in projects in communities with fewer than 2,000 residents and with a projected cost of more than $25 million.

The law exempts the projects from municipal authorities and regulations.

The legislation came after years of wrangling over a proposal by SWaN Investors to restore the Hill Top House Hotel, which first opened in 1889, burned down twice and has been reopened twice and lasted until 2007.

Developers secured participation in the Tourism Development Act program and last fall announced steps to build and refurbish the $150 million project. demolition work started last week.

The new lawsuit alleges that the Tourism Development Act was drafted solely for the benefit of SWaN. “It is highly unlikely that any other project or entity can or will ever meet the criteria” of the bill “as a company valued over $25,000,000 in a city of fewer than 2,000 people,” the statement said Legal action.

The lawsuit upholds the policy “which deprives the plaintiff and other residents of Harpers Ferry of their rights as citizens to regulate and control a significant and important portion of territory within their community.”

The lawsuit also argues a constitutional point that the law seeks to financially bind future lawmakers by providing for tourism development districts for 99 years.

A lawsuit filed by Bastress in Jefferson County over local authority issues was dismissed this month. That lawsuit sought to determine whether Harpers Ferry could act under the state’s municipal zoning program to sell vacant roads surrounding the hotel property to the developer.

Patrick Morsey

Attorney General Patrick Morrisey, who lives near Charles Town, filed to intervene in that lawsuit and commended its dismissal.

“Cities and communities like Harpers Ferry must have the flexibility to take the necessary steps to enable economic development within their borders,” explained Morrisey last week in response to Jefferson County’s dismissal of the lawsuit.

“As I have said, this project has been delayed long enough by forces opposed to the state’s economic progress.”