Permitting a connection, at least a connecting lift {which is pretty essential} is going to be an absolute B**** to get through the state of VT. My prediction is tremendous opposition, no matter how much sense it makes for the economy in that part of the state.
However, Smuggs is a perfect opportunity. Great terrain, Great terrain that could be further developed. Some of the best tree skiing in the country. When I was a kid, and we had a ski house in Stowe for many, many years, we'd make and adventure of riding up the chair on Big Spruce, skiing over the pond to then ski down at Smuggs. If it was really good, Dad would spring for a couple of books of single chair rides and we might make six runs or so. Some times we's ski down, ride back up, hike back to Spruce and ski down.
The last time I was at Smuggs was about 8-10 years ago, the last time that St. Mikes hosted an NCAA carnival there, and I think the last season they hosted their FIS SL series. It was "tired" then. But Madonna, the mountain itself is very special. I could see new lifts, a BUNCH of new condos, Hotel{s} and such. With it being linked by a lift to Stowe.
Might be a very attractive venture for VR......if they get get the permit. It will have a LOT more appeal, IMO, with the right lift plan. Lot of tree huggers that will fight it. Many in the State House, I believe. Of course time and money often solves those things!