MOUNT VERNON, Wash. -- Neighbors complaining about barking and the smell from a North Sound kennel asked officials on Wednesday to shut the business down, KIRO 7 Eyewitness News reported.

"We don't want this kind of puppy mill in our neighborhood," said Paul Helinski, speaking at a Skagit County planning commission meeting.

Neighbors said they’re worried about animal waste and a drop in property values.

Marjorie Sundberg, the kennel’s owner, said she was told she didn’t need a permit to breed dogs when she opened the kennel four years ago.

She said the dogs are kept in a sound-proof barn, with heating, air conditioning, air fresheners and two septic systems to handle the waste.

Bruce Peterson, Sundberg’s lawyer, said the animals are checked regularly by a vet who praises the breeder.

"This is not a puppy mill. This is reputable breeding operation by a woman who truly cares for her animals and has done everything she can to set up a clean and safe environment for these animals," Peterson said.

The county's senior planner, Marge Swint, said she agrees Sundberg cares about her dogs, but recommended that the hearing examiner deny the permit because of the size of the operation. There are about 150 adult dogs and 75 puppies at the kennel.

"The operation is much larger than what is the intent of a home-based business," Swint said.

Swint said 50 adult dogs in one building would be more in line with proposed new dog kennel regulations.

Peterson said it is kind of a backhanded way of making Sundberg do something the county would like all breeders to do in the future.

Sundberg said she's not about to get rid of 100 dogs.

The hearing examiner is expected to issue a ruling in two weeks.