Beach Haven Automotive, Inc. v. Borough of Beach Haven

New Jersey Superior Court Appellate Division·Decided June 2, 2025·No. A-3860-23·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-3860-23

BEACH HAVEN AUTOMOTIVE, INC., Plaintiff-Respondent,

v.

BOROUGH OF BEACH HAVEN, BEACH HAVEN MUNICIPAL COUNCIL, NANCY TAGGART DAVIS, in her capacity as Mayor of the BOROUGH OF BEACH HAVEN, and BOROUGH OF BEACH HAVEN LAND USE BOARD,

Defendants-Appellants.

Argued May 19, 2025 – Decided June 2, 2025 Before Judges Sabatino, Gummer and Jacobs.

On appeal from the Superior Court of New Jersey, Law Division, Ocean County, Docket No. L-2290-23.

M. James Maley, Jr., argued the cause for appellants (Maley Givens, PC, attorneys; M. James Maley, Jr., Emily K. Givens, and Erin E. Simone, on the briefs).

Steven E. Angstreich argued the cause for respondent (Weir LLP, attorneys; Steven E. Angstreich and Caroline J. Bojarski, on the brief).

PER CURIAM This appeal concerns the trial court's application of two subsections of the Local Redevelopment and Housing Law ("LRHL"), N.J.S.A. 40A:12A-1 to -49. Specifically, the municipal defendants argue the court misapplied subsections (b) and (d) of Section 12A-5 of the LRHL, in ruling they had failed to show plaintiff's parcel met the criteria for designating it as an "area in need of redevelopment" under the statute.

For the reasons that follow, we affirm the court's finding that the evidence was insufficient to prove that the parcel, which had been vacated for approximately six months to accommodate environmental cleanup measures, met the criteria of subsection (d).

However, we remand this matter to the trial court to fully develop the record with respect to whether the parcel's apparent most recent use through January 2023 as a commercial storage facility without a use variance violated local zoning ordinances. If so, the trial court must reconsider whether that alleged improper use amounts to a "discontinuance" of the parcel's use within

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the meaning of subsection (b) and, therefore, justified the municipality's redevelopment designation.

I.

Before we delve into the facts and procedural history, we provide this constitutional and statutory background for context.

Article VIII, Section 3, Paragraph 1 of the New Jersey Constitution authorizes the taking of private properties that are in "blighted areas" for redevelopment. The LRHL establishes statutory guidance for municipalities to exercise this authority.

The Legislature has stated that the goal of the LRHL is to enable municipalities to reverse "conditions of deterioration in housing, commercial and industrial installations, public services and facilities and other physical components and supports of community life, and improper, or lack of proper, development . . . ." N.J.S.A. 40A:12A-2(a) and (b). The LRHL aims "to promote the advancement of community interests through programs of redevelopment, rehabilitation and incentives to the expansion and improvement of commercial, industrial, residential and civic facilities." N.J.S.A. 40A:12A- 2(b).

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To that end, N.J.S.A. 40A:12A-5 sets forth the criteria for a property to be designated as an area in need of redevelopment. See Gallenthin Realty Dev., Inc. v. Borough of Paulsboro, 191 N.J. 344, 357 (2007). Once a property is designated as an area in need of redevelopment, the property shall be deemed a "blighted area" for which the municipality may exercise the power of eminent domain. N.J.S.A. 40A:12A-6(c); see also Malanga v. Twp. of W. Orange, 253 N.J. 291, 309-10 (2023). The designation also empowers a municipality to adopt a redevelopment plan for the area in accordance with N.J.S.A. 40A:12A-7.

When a municipality concludes that an area is in need of redevelopment pursuant to N.J.S.A. 40A:12A-5, that conclusion is entitled to a presumption of validity so long as it is supported by substantial evidence in the record. See Malanga, 253 N.J. at 314 (citing Gallenthin, 191 N.J. at 372).

That said, the municipality "must 'rigorously comply with the statutory criteria' to determine whether the property is in need of redevelopment." Ibid. (quoting 62-64 Main St., L.L.C. v. Mayor & Council of City of Hackensack, 221 N.J. 129, 156 (2015)). The record must contain "sufficient credible evidence that the designation satisfies the requirements of the LRHL." Ibid.

For that reason, "[c]ourts 'must review the complete record' to assess whether it contains substantial evidence to support a redevelopment

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designation." Ibid. (quoting Hirth v. City of Hoboken, 337 N.J. Super. 149, 157 (App. Div. 2001)). If the municipality's decision is arbitrary, capricious or unreasonable, not supported by the evidence, or contrary to law, the court may set it aside. Rivkin v. Dover Twp. Rent Leveling Bd., 143 N.J. 352, 378 (1996).

Here, as we will detail in our factual discussion in Part II, the municipal defendants found plaintiff's property satisfied the criteria of N.J.S.A. 40A:12A- 5(b) and also, alternatively, N.J.S.A. 40A:12A-5(d).1 To satisfy subsection (b), the municipality must establish that:

b. The discontinuance of the use of a building or buildings previously used for commercial, retail, shopping malls or plazas, office parks, manufacturing, or industrial purposes; the abandonment of such building or buildings; significant vacancies of such building or buildings for at least two consecutive years;

or the same being allowed to fall into so great a state of disrepair as to be untenantable.

[N.J.S.A. 40A:12A-5(b) (emphasis added).]

The statute does not define the term "discontinuance."

As a separate ground for designation, under subsection (d), the following areas also qualify:

d. Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding,

1 The parties agree the other subsections of N.J.S.A. 40A:12A-5 for supporting a designation do not apply here.

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faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community.

[N.J.S.A. 40A:12A-5(d) (emphasis added).]

The statute does not define the phrase "detrimental to the safety, health, morals, or welfare of the community." Nor does it explain how that determination is to be made.

Our appellate review of the meaning of these statutory provisions at the heart of this case is de novo. Wilson ex rel. Manzano v. City of Jersey City, 209 N.J. 558, 564 (2012). "When courts interpret the meaning of a statute, the paramount goal is 'to determine and give effect to the Legislature's intent.'" Malanga, 253 N.J. at 310 (quoting State v. Lopez-Carrera, 245 N.J. 596, 612 (2021)).

In determining the statute's intent, courts look to the plain language. Ibid.

And "[w]here a specific definition is absent, '[w]e must presume that the Legislature intended the words it chose and the plain and ordinary meaning ascribed to those words.'" State v. Twiggs, 233 N.J. 513, 532 (2018) (second alteration in original) (quoting Paff v. Galloway Twp., 229 N.J. 340, 353 (2017)).

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Further, a court should not examine the challenged portion of a statute in isolation but rather must consider the entire statutory scheme. See State v. Rangel, 213 N.J. 500, 509 (2013) ("We do not view words and phrases in isolation but rather in their proper context and in relationship to other parts of a statute, so that meaning can be given to the whole of an enactment."). However, "[w]hen the statutory language is ambiguous and 'leads to more than one plausible interpretation,' courts may resort to extrinsic sources, like legislative history and committee reports." Twiggs, 233 N.J. at 533 (quoting DiProspero v. Penn, 183 N.J. 477, 492-93 (2005)).

II.

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