11 MT. PLEASANT JV, LLC VS. LAND USE PLANNING BOARD OF THE TOWNSHIP OF EAST HANOVER (L-1361-19, MORRIS COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided December 14, 2020·No. A-3164-19T2·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3164-19T2

11 MT. PLEASANT JV, LLC, Plaintiff-Respondent,

v.

LAND USE PLANNING BOARD OF THE TOWNSHIP OF EAST HANOVER,

Defendant-Appellant,

and TOWNSHIP OF EAST HANOVER,

Defendant-Respondent.

Argued October 14, 2020 – Decided December 14, 2020 Before Judges Fisher, Gilson and Gummer.

On appeal from Superior Court of New Jersey, Law Division, Morris County, Docket No. L-1361-19.

William J. Rush argued the cause for appellant.

Karl P. Kemm argued the cause for respondent 11 Mt.

Pleasant JV, LLC (McManimon, Scotland & Baumann, LLC, attorneys; Karl P. Kemm, of counsel and on the brief; Joshua V. Berliner, on the brief).

Gregory F. Kotchick argued the cause for respondent Township of East Hanover (Durkin & Durkin, LLC, attorneys; M. Murphy Durkin, on the brief).

PER CURIAM Defendant Land Use Planning Board of the Township of East Hanover appeals from the trial court's order reversing the Board's denial of the site plan approval application submitted by plaintiff 11 Mt. Pleasant JV, LLC. 1 Because we agree with the trial court's findings that the Board's decision was arbitrary, capricious, and unreasonable and that remand to the Board would be futile, we affirm.

Plaintiff owns 11 Mt. Pleasant Avenue, Block 99, Lot 4, in East Hanover Township. The property was part of the site of a manufacturing facility operated and subsequently abandoned by the Varityper Corporation. Vacant since 1997, the structures on the property were demolished, leaving remnants of parking lots and building foundations. In 2003 the Township Council adopted a resolution authorizing the Board to investigate whether the Varityper site and surrounding

1 Defendant Township of East Hanover did not file an appeal but submitted a brief in support of the Board's appeal.

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properties qualified as an "area in need of redevelopment" under the New Jersey Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 to -89.

After conducting a public hearing on the results of its investigation, the Board in 2004 adopted a resolution recommending that the Township Council designate a portion of the studied property as an area in need of redevelopment. The Township Council adopted a resolution to that effect later that year but rejected an initial draft redevelopment plan due to concerns about traffic, density, impervious coverage, and impact on the neighborhood, which includes a high school. An advisory committee of local residents and business owners was created to explore alternatives, and a request for alternative redevelopment concepts was issued to the general development community. The committee reviewed the four submitted concept plans, and a new draft redevelopment plan was issued in 2006. Later that year the Township adopted that redevelopment plan by enacting Ordinance No. 22-2006, which amended its code and zoning map to designate thirty-seven acres of land as the Varityper Redevelopment Area (VRA).2

2 The VRA contains Lots 4, 4.02, and 5.01 in Block 99 of East Hanover. The Varityper plant was located on Lot 4, which encompasses more than twenty-five acres owned by plaintiff. Lot 4.02 is approximately eleven acres of forested land. Lot 5.01 consists of .64 acres and contains a partially constructed car wash facility.

A-3164-19T2

The initial redevelopment plan did not permit warehouse or warehouse-

type uses. Before purchasing the property, in November 2017 plaintiff's predecessor entity Penford Group, LLC met with members of the Township's staff, the Board's chairman, and Township and Board professionals to discuss amending the redevelopment plan to permit the warehouse Penford intended to construct on the property. A draft revised redevelopment plan, which included as a permitted principal use "[w]holesale and warehouse storage facilities and wholesale distribution centers," was issued. The Board reviewed the draft revised redevelopment plan, confirmed that it included the Board's recommendations, suggested no changes, and referred it to the governing body. The Mayor and Township Council reviewed the recommendations of the Township Planner and determined that it was in the Township's best interests to adopt the revised plan. On March 5, 2018, the Township enacted Ordinance No. 1-2018 and adopted the revised plan.

A draft second revised redevelopment plan was subsequently issued. The Mayor and Township Council reviewed the recommendations of the Township Planner and determined that the second revised plan was in the Township's best interests. With the enactment of Ordinance No. 7-2018 on June 4, 2018, the

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Township adopted the second revised and final redevelopment plan (the Varityper Redevelopment Plan or VRP).

Like the prior plan, the VRP included as a permitted principal use "wholesale, warehouse storage and distribution facilities and wholesale distribution centers." The VRP addressed off-site improvements in sections 6.6 and 8.5. Section 6.6 provided:

The designated redeveloper(s) within the Redevelopment Area will be responsible for their pro-

rata share of any installation or upgrade of infrastructure related to their project whether on-site or off-site including improvements to the Route 10/ Mount Pleasant Avenue/New Murray Road intersection . . . The extent of the redeveloper's responsibility will be outlined in the redeveloper's agreement with the Township. Off-site responsibility for properties not covered under the redeveloper's agreement will be determined during the permit and/or site plan review phases.

[(Emphasis added.)]

Section 8.5 provided:

The designated redeveloper(s) shall be responsible for any installation or upgrade of infrastructure related to their project whether on-site or off-site. Infrastructure items include, but are not limited to gas, electric, water, sanitary and storm sewers, telecommunications, recreation or open space, streets, curbs, sidewalks, street lighting and street trees or other improvements.

The extent of the designated redeveloper's

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responsibility will be outlined in the redeveloper's agreements with the Township.

[(Emphasis added.)]

That language tracks similar or identical provisions contained in the original redevelopment plan and the revised redevelopment plan. Thus, from the very beginning of its planned redevelopment of the VRA, the Township, with input from the Board, determined that a redeveloper's obligations regarding off-site improvements would be set forth in the Township's agreement with the redeveloper.

On August 6, 2018, the Township Council adopted Resolution 116-2018, naming Penford as the redeveloper of Lot 4 in the VRA. On September 5, 2018, the Township and Penford entered into a Redevelopment Agreement. Penford subsequently assigned that agreement to plaintiff. In the agreement, the parties acknowledged that the redeveloper intended to redevelop the property to contain "an approximately 322,219 square foot warehouse and related amenities." Section 4.02 of the agreement, entitled "Redeveloper's Obligations," provides:

(d) Off-Site Improvements and Contribution.

Redeveloper shall be solely responsible for the cost of extending and/or providing any and all utilities required to service the Property and/or the Project. The Parties recognize and agree that the scope and/or cost of other off-site improvements, including but not limited to traffic control devices, traffic control measures,

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11 MT. PLEASANT JV, LLC VS. LAND USE PLANNING BOARD OF THE TOWNSHIP OF EAST HANOVER (L-1361-19, MORRIS COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

11 MT. PLEASANT JV, LLC VS. LAND USE PLANNING BOARD OF THE TOWNSHIP OF EAST HANOVER (L-1361-19, MORRIS COUNTY AND STATEWIDE) (11 MT. PLEASANT JV, LLC VS. LAND USE PLANNING BOARD OF THE TOWNSHIP OF EAST HANOVER (L-1361-19, MORRIS COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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