Developer sues Swanzey zoning, planning boards

Avanru Development Group argues years of legal tug of war caused unnecessary, costly project delays

The Walpole-based Avanru Development Group is suing Swanzey’s zoning and planning boards, alleging it was mistreated during the approval process for two housing projects. The developer further argues that years of legal back-and-forth concerning one of the projects caused unnecessary and costly delays.

A complaint the company’s attorneys filed in U.S. District Court in Concord on April 16 claims the Swanzey Zoning Board of Adjustment and Planning Board unlawfully judged a 74-unit senior housing project based on public perception and the personal opinions of its members rather than whether it fit the town’s zoning regulations.

When reached by a reporter via phone Monday, Avanru CEO Jack Franks declined to comment on specifics about the case.

“This is a very serious matter and we’re going to pursue all remedies available to us,” Franks said, when asked about the damages his company is seeking from the town. “We have yet to determine a final number, but the legal team and accountants are working on that now. It is substantial.”

In addition to the town’s planning and zoning boards, the lawsuit names several current and former members of both bodies. The Keene Sentinel tried several Swanzey officials, who were not immediately reachable Monday or declined to comment.

As of that afternoon, the town had not filed a response to the complaint.

Avanru submitted its senior housing proposal at 115 Old Homestead Highway (Route 32) to the ZBA on Feb. 28, 2020, seeking a special exception to allow the multifamily development in the town’s business district. The board denied Avanru’s application that May. At the time, members held that the location was not appropriate, and that it would conflict with the neighborhood’s rural quality.

A superior court judge ruled against the board’s decision in December 2020, finding it lacked sufficient evidence that the project would reduce property values or harm neighbors.

Swanzey unsuccessfully appealed to the NH Supreme Court, and the ZBA granted the special exception in late 2022. The project hit another wall in January 2023 when the planning board denied Franks the necessary approval to proceed, but reversed this decision the following month.

Avanru claims in the complaint that it was roadblocked by unnecessary obstacles, resulting in three years of delay and millions of dollars in additional expenses.

In the 52-page document, Avanru said the ZBA wrongfully denied its application for a special exception, ignoring advice from legal counsel against rejecting the application because of public opposition.

According to minutes for the ZBA’s May 4, 2020, meeting, Attorney Michael Courtney, representing the town, told the board that the number of people opposed to the project was not pertinent to the criteria for considering a special exception.

At the time, several people had spoken against Avanru’s plans, many of them arguing that the new housing units would alter the neighborhood’s rural character and increase traffic.

When the planning board denied the development group’s application in January 2023 after the ZBA’s bout in court, Planning Board Chairman Scott Self observed that his peers offered no factual, legal basis in their denial, according to previous Sentinel reporting.

On Jan. 18 of that year, Avanru’s counsel sent a letter to Swanzey’s legal counsel signaling it would start litigation against the town, according to the complaint. The planning board then approved the project about a month later.

Self, who chairs the planning board but was not named as a defendant in the lawsuit, was not reachable Monday. 

Keith Thibault, ZBA chairman, declined to comment. Thibault, who was a member of the board during its litigation with Avanru, was also not named as a defendant.

On a separate project, to build 84 housing units across two buildings on Perry Lane, Avanru claims that the planning board required the buildings to have pitched roofs instead of its proposed flat-roof design, despite other surrounding structures having flat roofs. According to the complaint, this change, which Avanru argued against, cost the company $550,000. This project has since been completed.

Selectboard Chairman Sylvester “Sly” Karasinski, who acted as a representative of the selectboard on the planning board, declined to comment on Avanru’s recent court complaint.

Town Administrator Michael Branley was not immediately reachable Monday by The Sentinel.

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