355 Route 9, LLC v. the Crownpoint Group, LLC

New Jersey Superior Court Appellate Division·Decided March 13, 2024·No. A-1513-22·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1513-22

355 ROUTE 9, LLC, Plaintiff-Appellant,

v.

THE CROWNPOINT GROUP, LLC, and BOROUGH OF SOUTH RIVER PLANNING BOARD,

Defendants-Respondents.

Argued March 4, 2024 – Decided March 13, 2024 Before Judges Mawla, Chase, and Vinci.

On appeal from the Superior Court of New Jersey, Law Division, Middlesex County, Docket No. L-5730-21.

Ronald S. Gasiorowski argued the cause for appellant (Gasiorowski & Holobinko, attorneys; Ronald S.

Gasiorowski, on the briefs).

Jeremy M. Solomon argued the cause for respondent the CrownPoint Group LLC (Bob Smith & Associates LLC, attorneys; Jeremy M. Solomon, Timothy M.

Arch, and Daven K. Persaud, on the brief).

Thomas Walter Barlow argued the cause for respondent Borough of South River Planning Board (Lombardi & Lombardi, PA, attorneys; Thomas Walter Barlow, on the brief).

PER CURIAM Plaintiff 355 Route 9, LLC appeals from a December 15, 2022 order upholding defendant Borough of South River Planning Board's (Board) grant of defendant CrownPoint Group LLC's development application and dismissing plaintiff's complaint in lieu of prerogative writs with prejudice. We affirm.

Defendant1 filed an application seeking preliminary and final site plan approval and a bulk variance to build a self-storage facility consisting of 750 individual self-storage units on a property located on Old Bridge Turnpike. Defendant's property comprises 1.97 acres situated in South River's general business district, B-2 Zone.

The application sought a bulk variance under N.J.S.A. 40:55D-70(c)(l)

and (c)(2) of the Municipal Land Use Law (MLUL). The maximum height limitations of the B-2 Zone is thirty-five feet or two and one-half stories, whichever is less. Defendant sought to build a three-story structure that was

1 Hereinafter, we refer to defendant as CrownPoint.

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thirty-four and one-half feet in height, which required a variance from the maximum building height of two and one-half stories.

Defendant also sought a bulk variance from the loading space requirement, which mandated one loading space per 10,000 square feet. Based on this ratio, the property would require ten loading spaces, however, defendant's proposal included no loading area because the site had space for general loading. The proposed building also did not conform to the off-street parking requirement, but defendant did not apply for a variance on this issue.

Over the course of three days, the Board heard testimony from defendant's president and its experts, namely, an engineer, architect, traffic engineer, and professional planner. In addition to cross-examining defendant's witnesses, plaintiff called its own expert, a planner and traffic engineer, who testified regarding the height variance. Plaintiff offered no testimony on the loading or parking space issues. The Board also received one public comment on an issue unrelated to those raised in this appeal.

The Board unanimously approved the site plan and variance and issued a detailed ten-page written resolution recounting the evidence and testimony presented and its findings and conclusions. It found the site plan "would be beneficial to the site [and] . . . the surrounding properties and . . . the Borough

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in general." Further, the proposal "could be approved without substantial detriment to the intent and purposes of the Zoning Plan, Zoning Ordinance[,] and the public good." The resolution noted the Board based its decision on the testimony of defendant's "experts and witnesses and the recommendations of the Borough's professional staff" and granted the site plan approval and variances subject to nine conditions itemized in the resolution that we need not discuss here.

Plaintiff filed a complaint in lieu of prerogative writs. It claimed the Board did not have jurisdiction to grant the height variance because defendant required a use variance pursuant to N.J.S.A. 40:55D-70(d)(6), which could only be granted by the Zoning Board of Adjustment.

Alternatively, plaintiff argued a variance pursuant to N.J.S.A. 40:55D-

70(c)(1) or (c)(2) should have been denied because defendant did not demonstrate an undue hardship, the proposed deviation advanced no zoning purpose and only benefited defendant, and the intensified use of the property was a substantial detriment to the public good. Plaintiff claimed defendant did not apply for or receive a variance regarding the parking requirement, which rendered its application defective, and the Board's approval of the parking proposal was erroneous because it was done without notice to the public.

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Judge Thomas Daniel McCloskey conducted a trial and heard arguments after which he issued a detailed written opinion adjudicating plaintiff's claims. He found the Board had authority to grant a (c) variance and the height variance defendant sought was not enumerated under (d) because "a zoning board or planning board may grant a 'c' variance as to any regulation enacted under the MLUL other than those which may only be granted exclusively under subsection d." (Emphasis in original).

The judge rejected plaintiff's jurisdictional argument noting that at the initial hearing plaintiff's counsel told the Board he had discussed this issue with the Board's attorney and would not be objecting on jurisdictional grounds. The judge noted "[t]he matter of the Board's jurisdiction was never raised again by . . . [p]laintiff . . . through the three . . . hearings conducted before the Board."

However, in the interest of completeness, the judge addressed the jurisdictional issue on the merits. He cited Cox & Koening, New Jersey Zoning & Land Use Administration § 6-3.4 (2013), and its discussion of the Legislative amendments to the MLUL. The treatise noted as follows: "The clear intent of the amendment [to N.J.S.A. 40:55D-7(d)] is to permit the planning board to grant limited height variances . . . where small variations from the ordinance limitation may be desirable . . . ." Therefore, the Legislature intended to vest

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exclusive jurisdiction over major height variations in the zoning board of adjustment. Ibid. The judge noted an example of when a height limitation issue would be decided by a planning board rather than the zoning board would include where an "ordinance[] provide[s] height limitations expressed both in terms of stories and in feet [and w]here the limitation as expressed in stories is exceeded but the limitation in feet is not." Ibid.

South River's ordinance expressed the height limitation in stories and feet;

it limited structures to the lesser of two and one-half stories or thirty-five feet. Because defendant's application exceeded the story requirement but did not exceed the height requirement, the judge found "the Board appropriately treated the application as a 'c' bulk variance since section 70[(d)] of the MLUL requires that the structure exceed the height limitation by '[ten] feet or [ten percent]' for the exclusive jurisdiction of the zoning board . . . to be triggered." The judge concluded "when height limitation is stated in feet the legislative intent is that the actual height of the building in feet—not stories—is the dispositive factor." (Emphasis in original). Here, the proposed building was less than the thirty-five foot maximum.

The judge rejected plaintiff's alternative argument that, assuming the Board had jurisdiction, it erroneously granted the variance because defendant

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