A state hearings board Monday rejected a Snohomish County Council rezone that had cleared the way for auto dealer Dwayne Lane to move his car lot to farmland at Island Crossing near Arlington.

The board said the County Council violated state growth laws that protect farmlands when it expanded Arlington’s urban growth area to include Island Crossing.

And the county was "clearly erroneous" when it removed the agriculture designation from the property, the board ruled.

Groups that had been fighting the rezone, and Lane’s subsequent attempt to annex Island Crossing into Arlington, were jubilant.

"We’re very pleased with this decision," said John Zilavy, legal director for 1000 Friends of Washington. The environmental group opposed Lane’s attempt to commercially develop land at Island Crossing.

The County Council’s change was wrong on several levels, the board noted. It violated the Growth Management Act and also ran counter to growth policies already adopted by the county.

Land at Island Crossing contains prime soils and has long-term commercial significance for farming, the board said.

"This is just a vindication of the credo that the land does indeed speak first," Zilavy said.

Lane declined to comment on the decision.

His son, Tom Lane, said in a prepared statement that the decision was "poorly written and poorly argued." He said the family would continue its fight in court.

"We’ve always viewed the hearings board as a speed bump on the way to a real court," Lane said in the statement.

The zoning change had many critics. Gov. Gary Locke opposed the council’s removal of agriculture zoning in Island Crossing, as did local farmers and the Stillaguamish Flood Control District. The district was worried that further development in the floodplain of the Stillaguamish River would worsen the effects of flooding for other property owners.

Henry Lippek, the flood district’s attorney, said the decision "restores faith in the growth management process."

The Central Puget Sound Growth Management Hearings board issued its decision Monday. The board, a three-member group appointed by the governor, resolves land-use disputes.

County Councilman Dave Gossett said he would not support an appeal of the board’s decision to Superior Court.

"This is an issue that’s been through the wringer a number of times," he said. Earlier, Gossett cast the only "no" vote against the Island Crossing zoning changes.

Beyond Lane, the zoning switch did have its advocates.

Supporters said Island Crossing already has started to turn urban, with restaurants, gas stations, and sewer and water lines.

But the board rejected that claim.

Development at Island Crossing’s I-5 intersection are covered by the county’s "freeway service" designation, and just because utilities are there doesn’t mean the land must become part of a city.

Taking the land out of farming would create "an urban island almost completely surrounded by resource lands," the board said.

The board was blunt in its assessment of the county’s reasons for the rezone, as well. It said the county had "scant credible and objective support from the record" in making the land-use change, and the board discounted information on the rezone that was done by Lane’s consultants.

Lane is part owner of 14.3 acres and has been leading an attempt to annex 266 acres of property, including 110 acres at Island Crossing, into Arlington.

The annexation effort kicked into high gear this month. The Arlington City Council tried to push forward an annexation vote in a special meeting scheduled for tonight.

But the state growth board beat the council by a day by issuing its ruling, which stopped the annexation dead in its tracks. State law prohibits a city from annexing land that is not within its urban growth area.

Arlington City Councilwoman Sally Lien said she was not surprised by the growth board’s ruling, even though it came several weeks before it was expected. She said the council had heard the state board was pressured to move quickly.

Lien acknowledged the City Council felt competing pressure from the proposal’s supporters.

"Now you know why we were in such a hurry," Lien said, adding the council probably will cancel tonight’s meeting. "I wish it had gone the other way."

Arlington Mayor Margaret Larson said she is waiting to discuss the issue with City Attorney Steve Peiffle to see what the city’s next step should be.

Snohomish County’s Boundary Review Board was scheduled to review the annexation proposal Monday night. The board, however, voted to extend its review until April 12 so it could consider the growth board’s decision.

The county council also must revisit the issue. The state board gave Snohomish County until May 24 to comply.

Reporter Brian Kelly: 425-339-3422 or kelly@heraldnet.com.