There are two provisions providing for compensation of the lessee upon termination of the lease in particular fashions. The State has the option to end the lease in two situations. One is, upon due notice, at the close of any term. The other arises if the plaintiff fails to comply with a certain covenant requiring operation of the ski lifts for a certain minimum period. Should the State elect to exercise its right under either of these provisions, it is bound to reimburse the plaintiff for its investment in the facilities according to an agreed payment plan.
But the facilities always remain on the land, and continue to be the property of the State. Should the lease terminate in any other fashion, there is no provision for payment to the plaintiff, but neither is there any right in the plaintiff to remove the lifts. Between the parties, the lifts are irrevocably fixed to the land. The facts confirm the intention expressed by the parties to the lease. This removes the lifts from the class of personalty, and makes them part and parcel of the real estate. Annexation could hardly be more complete. This determination is unaffected by the fact that the State is a party to the lease.
The judgment of the lower court is based upon a finding that this property is personalty. This finding cannot stand. The matter must be referred back to that court for the preparation of a new decree based on a finding that the lift facilities in question are real estate, and are the property of the State of Vermont.
Judgment reversed, and cause remanded for the preparation of a new decree in accordance with the views expressed in the opinion.