The Maine Supreme Judicial Court vacated a lower court ruling that upheld a Town of Mount Desert Planning Board decision approving a six-dwelling subdivision in Northeast Harbor, finding the Planning Board failed to properly calculate required open space under local ordinances.
In *Ann Cannon v. Town of Mount Desert* (Me. 2025), seven property owners and part-time residents in Northeast Harbor successfully challenged the Planning Board's March 2023 approval of the Heel Way Subdivision. The proposed development by Mount Desert 365 would create six dwelling units on a 0.9-acre parcel, consisting of two double-dwelling buildings and two single-dwelling buildings on commonly owned land.
Justice Mead, writing for the unanimous seven-member panel, held that the Planning Board "erroneously declined to calculate the open-space requirements provided for in the Town's Subdivision Ordinance." The court vacated the Business and Consumer Docket judgment that had affirmed the Planning Board's approval and instructed the lower court to remand the matter for further consideration.
The case stems from Mount Desert 365's subdivision application submitted in March 2023 for what the entity described as housing designed to serve the year-round workforce in Northeast Harbor. The applicant sought to develop the small parcel in the village with multiple residential buildings arranged on a single commonly owned lot.
The residents challenging the approval include Ann Cannon, Marc Cannon, Mellisa Cannon Guzy, Lamont Harris, Stuart Janney, Joseph Ryerson, and Lynne Wheat. These property owners and part-time residents argued that the Planning Board failed to properly apply local subdivision requirements when approving the project.
The Business and Consumer Docket initially sided with the Town of Mount Desert, affirming the Planning Board's decision under Judge McKeon. However, the residents appealed to the state's highest court, arguing that the Planning Board's approval violated local ordinance requirements.
The Maine Supreme Judicial Court's decision focused specifically on the Planning Board's failure to calculate open-space requirements mandated by the Town's Subdivision Ordinance. While the court did not elaborate extensively on the specific calculations that should have been performed, the ruling makes clear that such calculations are mandatory under local law and cannot be simply declined or ignored by planning boards.
Open-space requirements in subdivision ordinances typically mandate that developers set aside specific percentages of land for common areas, recreation, or environmental preservation. These requirements serve multiple purposes, including maintaining community character, providing recreational opportunities, and preserving natural resources within developed areas.
The court's decision represents a victory for local residents who have increasingly challenged development approvals they believe violate municipal ordinances. Northeast Harbor, part of the larger Town of Mount Desert on Mount Desert Island, has faced ongoing tensions between development pressures and preservation of community character.
The proposed Heel Way Subdivision was specifically marketed as workforce housing, addressing a critical need in many Maine coastal communities where year-round residents struggle to find affordable housing amid seasonal tourism pressures. However, the court's ruling demonstrates that even projects addressing housing needs must comply with all applicable local regulations.
Justice Mead's opinion, supported by Chief Justice Stanfill and Justices Horton, Connors, Lawrence, Douglas, and Lipez, sends a clear message that planning boards cannot selectively ignore ordinance requirements, regardless of a project's stated public benefits.
The case was argued before the Supreme Judicial Court on April 10, 2025, and decided on August 28, 2025, under docket number BCD-24-316. The court cited *Gensheimer v. Town of Phippsburg* (2005 ME 22, 868 A.2d 161) in establishing that relevant facts should be drawn from Planning Board findings supported by the administrative record.
The remand to the Planning Board means Mount Desert 365's subdivision application will receive fresh consideration, this time with proper attention to open-space calculations required under local ordinances. The Planning Board will need to determine whether the proposed development can meet open-space requirements or whether modifications to the project design are necessary.
For the challenging residents, the decision validates their argument that local planning boards must follow all applicable ordinance provisions when reviewing subdivision applications. The ruling reinforces the principle that procedural compliance with local regulations is mandatory, not optional, in municipal land-use decisions.
The outcome may influence similar disputes across Maine, where coastal communities frequently balance development needs against preservation goals through detailed subdivision ordinances. Planning boards statewide will likely review their practices to ensure full compliance with local open-space and other subdivision requirements.
While the decision does not permanently block the Heel Way Subdivision, it requires the Planning Board to restart its review process with proper attention to ordinance-mandated calculations. The ultimate fate of the workforce housing project will depend on whether it can be redesigned to meet all local requirements or whether the open-space calculations reveal fundamental incompatibilities with the proposed development.