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In Appeal of 232511 Investments, Ltd., 2006 VT 27, the applicant for an approved Resort PUD appealed from an Environmental Court decision, and inter alia, challenged whether the Town of Stowe had standing to participate in the appeal. The Vermont Supreme Court ruled that although a town is not allowed to challenge a zoning decision, ìit may challenge a board decision that interprets one of the townís bylaws.î Because the applicant had, by its appeal, placed the meaning of the regulations at issue, the Town was entitled to be heard on the lower courtís interpretation of the regulations.

Applicant also argued that the court erred in concluding that it had to amend the Resort PUD to a PRD to replace the hotel with clustered housing. The Supreme Court affirmed the Environmental Courtís ruling to the contrary, holding that a Resort PUD does not carry with it implied authorization for a developer to alter its plans to construct what amounts to a single-use PRD where its permit contemplates a mixed-use Resort PUD.