N.H. ski resort sues state over its lease

NEWBURY, N.H. - Operators of Mount Sunapee ski resort have sued the state, claiming Governor John Lynch has violated their lease agreement by refusing to consider their plan to expand.

Tim and Diane Mueller have run the resort on state-owned land since 1998. The state leases the land to the Muellers.

For six years, the Muellers have tried to expand the resort to include 175 acres of state park land and connect it to private land they own in Goshen. They have proposed building up to 250 condos on that property.

The plan must be approved by the Executive Council, but Lynch has refused to put it before the council for a vote, saying it would be a waste of time, because he would just veto it.

The governor's office says the lawsuit is without merit.

The resort's suit, filed Oct. 11 in Merrimack County Superior Court, asserts that Lynch's opposition amounts to a breach of contract.

"The state, through the governor, has reneged on its promises and obligations by refusing to even consider Sunapee's proposed amendment to the lease and operating agreement," the lawsuit reads. "Such action also represents poor public policy, which will chill future relationships with private business because the state is unwilling to abide by its legal obligations and promises."

The Muellers' argument rests on what they say is an error in the property lines described in the original lease. They argue the resort's boundaries were understood to extend to the northern and western boundaries of the state park but that a surveying mistake failed to note that and the state has not kept a promise to correct it. The Muellers also argue the original lease promised the opportunity to expand the resort, including cutting new ski trails.

They are requesting compensation for revenue they argue they have lost because of their inability to expand.

They asked that a judge order Lynch and the Executive Council to approve the plan.

Colin Manning, a spokesman for Lynch, said, "The state is under no obligation to lease additional state park land for private condominium development, especially considering that when the state first entered the lease, the public was assured there would not be this type of private condominium development."