Allerand Recovery Holdings, LLC v. The Borough Council of the Borough of Waymart ~ Appeal of: KELG Real Estate, LLC

CourtCommonwealth Court of Pennsylvania
DecidedJune 29, 2026
Docket8 C.D. 2025
StatusUnpublished
AuthorWallace

This text of Allerand Recovery Holdings, LLC v. The Borough Council of the Borough of Waymart ~ Appeal of: KELG Real Estate, LLC (Allerand Recovery Holdings, LLC v. The Borough Council of the Borough of Waymart ~ Appeal of: KELG Real Estate, LLC) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Allerand Recovery Holdings, LLC v. The Borough Council of the Borough of Waymart ~ Appeal of: KELG Real Estate, LLC, (Pa. Ct. App. 2026).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Allerand Recovery Holdings, LLC : : v. : No. 8 C.D. 2025 : Submitted: March 3, 2026 The Borough Council of the : Borough of Waymart, Wayne : County, Pennsylvania and KELG : Real Estate, LLC : : Appeal of: KELG Real Estate, LLC :

BEFORE: HONORABLE RENÉE COHN JUBELIRER, President Judge HONORABLE ANNE E. COVEY, Judge HONORABLE STACY WALLACE, Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE WALLACE FILED: June 29, 2026

KELG Real Estate, LLC (KELG) appeals from the December 4, 2024 order of the Court of Common Pleas of Wayne County (Common Pleas), affirming a decision of the Borough Council (Council) of Waymart Borough (Borough) and denying Allerand Recovery Holdings, LLC’s (Applicant) appeal of that decision. The Council denied Applicant’s conditional use application for a proposed inpatient alcohol and drug rehabilitation and detoxification facility. Upon review, we affirm. BACKGROUND KELG owns a building at 186 Belmont Turnpike, Waymart (Property), within an industrially zoned area, where Mallard Meadows formerly operated a senior assisted-living center and nursing home for 19 years. Reproduced Record (R.R.) at 120a, 512a-13a. A portion of the Property was recently used as a childcare center.1 Id. at 512a. KELG entered into a letter of intent with Applicant for the sale of the Property. Id. at 512a, 122a, 199a. On March 12, 2024, as an equitable owner, Applicant applied for conditional use approval to convert the Property into an inpatient rehabilitation and detoxification facility under Section 125-31 of the Borough Zoning Ordinance (Ordinance), which specifically applies to changes and additions to nonconforming uses and treats them as a conditional use.2 Id. at 551a- 52a. Applicant intended to offer only inpatient treatments at the proposed facility, which would consist of 70 to 80 beds. Id. at 512a. Because the Ordinance does not list the Prior Uses, nursing home and childcare center, as permitted or conditional uses, Applicant characterized them as nonconforming uses. Id. at 513a. On April 30, 2024, the Council conducted a public hearing on Applicant’s request for conditional use. At the outset of the hearing, Borough Solicitor Richard B. Henry (Solicitor) reminded the public of its right to intervene and object in the matter before the Council. Id. at 89a. In particular, the Solicitor remarked “property owners [were] indispensable parties to lawsuits affecting their property rights.” Id. at 90a. The Council permitted 16 individuals, including Maria Miller (Mrs. Miller), the wife of Councilman Donald Miller (Councilman), to intervene as parties. Id. at 96a, 111a. Applicant first called to the stand Katie McKendry, Clinical and Executive Director of Little Creek, an entity owned by Applicant. Id. at 124a. McKendry testified to the various treatment services and programs that Applicant offers at its

1 We refer to the Property’s past or recent use as a senior assisted-living center, nursing home, or a childcare center as “Prior Uses.” 2 Section 125-45 sets forth the standards and criteria for granting conditional use approval.

2 other facilities and the screening process involved for admitting patients. Id. at 124a- 26a. She testified the proposed use at the Property would involve only co-ed inpatient services, with priority given to Wayne County residents. Id. at 127a, 129a. Patrick Crilley, Applicant’s Chief Executive Officer, testified that, of the 70 to 80 beds, between 12 and 16 would be used for detoxification purposes, with the remainder dedicated to inpatient residential rehabilitation. Id. at 155a. Although KELG did not intervene, its principal, Robert Grim (Grim) was present and testified on Applicant’s behalf. Id. at 119a, 199a. Grim testified about the letter of intent to sell the Property to Applicant and the daycare center operating there. Id. at 199a-201a. Following Applicant’s presentation of Grim’s testimony, the Council recessed and continued the public hearing to May 16, 2024. Applicant next offered the expert testimony of Mark R. Zimmer, Esquire (Zimmer).3 Id. at 260a. Zimmer testified neither the Prior Uses, nor the proposed rehabilitation and detoxification use are listed in the Ordinance as permitted or conditional uses. Id. at 266a. On cross-examination, noting the Borough adopted the current Ordinance in 1988, before the Property was first used as an assisted- living and childcare center, Mrs. Miller asked Zimmer whether the Prior Uses were “valid nonconforming uses.” Id. at 277a-78a (emphasis added). Zimmer remarked “neither of the uses that have been there before met the criteria for the uses in Industrial Zone and, so, they had been nonconforming uses.” Id. at 278a-79a. When asked “if the businesses were placed there without permitting,” he replied:

Well, if they were placed there without permitting, then they would have been unlawful uses at the time. If they continued to be used without having been revoked or sued and having a judgment by a Zoning Hearing Board and eventually the Court of Common Pleas—that didn’t happen—then they are just outstanding and, if they are allowed, then 3 Zimmer represents KELG in the present appeal.

3 it’s kind of a nonconforming use by default, I guess is the best way I could put it.

Id. at 279a (emphasis added). Jeff Zerechak, Director of the Wayne County Drug and Alcohol Commission, testified in support of Applicant’s request for conditional use. Id. at 291a-94a. He highlighted the need for patients to have access to a rehabilitation facility in Wayne County. Id. at 294a, 303a. Zerechak acknowledged the county invited Applicant to establish a rehabilitation facility in the Borough. Id. at 305a-06a. Jocelyn Cramer, Wayne County Commissioner, echoed Zerechak’s comments on the county’s need for an inpatient rehabilitation facility. Id. at 335a-36a. Mrs. Miller, one of many individuals granted party status, testified she resided across the street from the Property, separated by State Route 296. Id. at 96a. At the May 16, 2024 public hearing, Applicant’s counsel asked her whether she was “related to any members of the . . . Council[.]” Id. at 406a. Mrs. Miller answered she was “the wife of Councilman [Donald] Miller.”4 Id. At the close of the hearing, the parties agreed to permit the Council until its July 9, 2024 meeting to render a decision. Id. at 465a-70a. At that meeting, upon Councilman’s motion, the Council voted four to one to deny Applicant’s request for conditional use. Id. at 563a-64a. The Council issued a written decision on July 24, 2024. In support of its decision, it rendered the following findings of fact:

1). The subject property is owned by KELG.

2). The property is under contract or agreement of sale between KELG and [Applicant].

4 Donald Miller, who also goes by Don, is referred to as John Miller in the transcript. This is typographical error.

4 3). [Applicant] has an equitable interest in the property and the standing to seek the pending [c]onditional [u]se. 4). The property is located in the Industrial Zone as defined in the Ordinance.

5). The intent of the Industrial Zone is to provide sufficient space in appropriate locations to meet future needs for light manufacturing activity. 6). The use proposed by [Applicant] is not compatible with the “use” intent of that district.

7). The Industrial Zone is surrounded by residential zones.

8). The most recent uses at the subject property cannot be identified as valid nonconforming uses. 9). The proposed use is likely to create an injurious impact on adjacent properties. 10). The proposed use is not consistent with the conditional uses parameters of Section 125-45 of the Ordinance.

11). It has not been proven that the proposed use is in harmony with the purpose, goals, objectives and standards of the Waymart Borough Comprehensive Plan.

12).

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