RailYard owners sue Black Mountain, alleging permit and parking retaliation

RailYard Hospitality Group has taken its dispute with the Town of Black Mountain to federal court, accusing town officials of years of inconsistent enforcement, constitutional violations and financial harm tied to permits, inspections and parking enforcement at Black Mountain Brewing and the RailYard project.

The lawsuit, filed Monday, May 11, in U.S. District Court for the Western District of North Carolina, names the town, former Town Manager Josh Harrold, former Assistant Town Manager Jessica Trotman, Planning Director Michelle Kennedy, Zoning Administrator Russell Cate and Building Inspector Rick Burton. The company says the town approved the project, then changed course and used enforcement actions that kept the business from operating fully.

The complaint lays out a permit history that began with an initial commercial remodel permit in February 2022, followed by a revised permit in September 2022. The town then issued a Certificate of Occupancy and Compliance in March 2023, and the RailYard opened in April 2023. The company says the trouble escalated later, when town officials began issuing notices of violation and, in August 2025, installed a chain-link fence around part of the property to block parking access. The lawsuit says that happened without a court order and without giving the business a chance to appeal.

Black Mountain has publicly defended its handling of 131 Broadway Street by releasing a detailed timeline of permitting activity, inspections and required documents tied to the covered deck at Black Mountain Brewing. In its Dec. 3, 2025 statement, the town said the original building had a certificate of occupancy for 50 people, but the upper deck and roof never received one. The town also said occupancy was reduced to 25 because only one public restroom was available while the upstairs restroom was part of unpermitted construction.

Town officials said possible permitting issues were first identified in April 2024. In August 2024, the town sent a letter directing the property owner to reinstate permits and obtain inspections. A fire inspection in August 2025 found unpermitted electrical and interior work on the upper floor, and the town’s review resulted in 19 required corrections. The town has also said former employees made mistakes in administering state law, and that at least one former inspection employee was no longer licensed to enforce North Carolina building codes.

The dispute has already spilled into public view. Supporters rallied outside Black Mountain Town Hall and marched into the meeting on Dec. 8, 2025, when owner John Richardson pressed council members and argued the town had left out key documents showing the brewery had been told it was in compliance. A March 18, 2026 pre-litigation meeting requested by the town ended without a resolution, and interim Town Manager Richard Hicks said the town would keep working toward an amicable solution. Richardson later announced a run for Black Mountain Town Council, saying the fight helped motivate him.

The federal case now puts a broader question before the court: whether Black Mountain corrected earlier permitting mistakes or changed course after granting approvals, and whether that process has become so costly and inconsistent that other Buncombe County businesses could face the same kind of fight.