Derby Refining Co. v. City of Chelsea

555 N.E.2d 534, 407 Mass. 703
CourtMassachusetts Supreme Judicial Court
DecidedJune 19, 1990
StatusPublished
Cited by29 cases

This text of 555 N.E.2d 534 (Derby Refining Co. v. City of Chelsea) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derby Refining Co. v. City of Chelsea, 555 N.E.2d 534, 407 Mass. 703 (Mass. 1990).

Opinion

Greaney, J.

The question in this case is whether Belcher New England, Inc. (Belcher), may operate a liquid asphalt storage facility on waterfront property at 99 Marginal Street *704 in Chelsea. Belcher maintains that its use of the property is protected under G. L. c. 40A, § 6 (1988 ed.), as a prior nonconforming use, from the application of a new Chelsea zoning ordinance which purports to prohibit the use. Belcher also argues that the new Chelsea zoning ordinance is invalid. Chelsea maintains the converse of both propositions. We transferred the appeal from the Appeals Court on our own motion. We conclude, as did the Land Court judge who heard and decided the case, that the use is protected by G. L. c. 40A, § 6. Consequently, we need not address the arguments pertaining to the validity of the new zoning ordinance.

Belcher brought the action in the Land Court 3 to determine whether the new Chelsea zoning ordinance applied to the property. The judge conducted a lengthy trial, which included testimony from several expert witnesses and personal inspections of the property from the shore and from a tugboat. We take the facts from the judge’s extremely thorough memorandum of decision.

The property lies on the bank of the Chelsea Creek in Chelsea, in a highly industrialized neighborhood formerly designated as an industrial waterfront district. As described in Mahoney v. Chelsea, 20 Mass. App. Ct. 91 (1985), a decision referred to by the judge as accurately depicting the area she observed on the views, “[t]he district is generally old and unattractive and is composed largely of oil tank farms, warehouses, junkyards, and a shipyard. Abutting the district is an industrial district which contains a junkyard, a truck sales office, a fruit and produce warehouse and land owned by the Quincy and Sun Oil Companies. The banks of the creek in East Boston across from the site are lined with oil tank farms and a salvage yard.” Id. at 92.

Title to the property was acquired in the 1920’s by Texaco Oil Refining and Marketing, Inc. (Texaco), or its predecessor *705 corporations. Some time around 1960, Texaco constructed a petroleum storage facility on the property by installing seven large storage tanks, a dock, “breasting dolphins,” and a truck-loading ramp. Ocean-going tankers would dock at the breasting dolphins, hook onto the permanent system of piping, and pump their cargoes directly into the storage tanks. Those cargoes included three grades of gasoline, ship kerosene, two grades of aviation fuel, and a petroleum product called “No. 2 fuel,” which is similar to diesel fuel. The petroleum products then would be pumped from the storage tanks to a loading rack for direct delivery into trucks by means of a second system of pipes equipped with downspouts. The facility also includes two brick buildings, which housed Texaco’s offices, warehouses, and physical plant, and a separate garage to house and service delivery trucks..

Texaco continued to operate the petroleum storage facility on the property until 1983, when, in response to changing economic conditions in the industry, it entered an agreement entitling it to joint use of a similar facility owned by Gulf Oil Corporation on Eastern Avenue in Chelsea. Texaco then proceeded to “mothball” the Marginal Street facility. This process included pumping out the storage tanks, hiring a contractor to clean them, purging the feed lines, filling them with a chemical preservative, and sealing them. The business office was closed, and its contents removed. However, Texaco continued to heat the building, and hired a security firm to check the premises.

After “mothballing” the property, Texaco tried to sell it. Texaco marketed the facility in the same way that it customarily disposed of other properties no longer needed in the operation of its business. It placed advertisements in trade journals and made contact with petroleum suppliers to ascertain whether they might be interested in a purchase. In addition to these marketing efforts, Texaco hired a firm to install a “cathodic protection system” to preserve the steel of the empty tanks for the next user. Texaco also maintained the flammable storage licenses issued pursuant to G. L. c. 148, § 13 (1988 ed.), for the entire period during which the prop *706 erty was on the market for sale. The judge found that Texaco “was anxious to sell the facility and to realize the highest possible price therefor which would appear to be the use which had been made of the locus for many years.”

After one proposed sale fell through, Texaco succeeded in selling the facility to Derby Refining Company (Derby) on January 15, 1986. On that same date, Derby leased the facility to Belcher. The Chelsea zoning ordinance in effect when Derby took title to the premises from Texaco provided for an industrial waterfront district. Permitted uses in this district included “oil and gas tank farms including distributive facilities.” The use of the property as a petroleum storage facility thus was a conforming use at the time of Derby’s acquisition of the property.

Belcher immediately set about to determine the best use to make of the property. It ultimately decided to operate a liquid asphalt storage facility on the premises. 4 ***To prepare for this use, Belcher installed a hot oil heating system to heat the tanks and pipes so that the asphalt could be preserved in a liquid state for pumping. Belcher also insulated the exteriors of three of the storage tanks to prevent heat loss, 5 added scales to the truck-loading dock, and made various other modifications to the pipes, valves, and tanks. This work began in the summer of 1986.

On March 14, 1986, after Derby had purchased the property but before Belcher had begun work to prepare it for asphalt storage, notice appeared in the Chelsea Record, a newspaper of general circulation in Chelsea, of a public hearing to be held on proposed amendments to the zoning ordinance. The new zoning ordinance passed pursuant to that notice radically changed the permitted uses in the new waterfront district which was no longer zoned as an industrial waterfront district. The new ordinance provides: “The *707 purpose of the Waterfront District is to provide an area for uses which are water related and/or which benefit from the proximity to the airport or the harbor, and to encourage public access to the waterfront.” Belcher’s intended use of the property as an asphalt storage facility was rendered a nonconforming use by this new zoning ordinance.

In September of 1986, Belcher applied for a certificate of occupancy for the facility. After first determining that the certificate should issue, and notifying Belcher to that effect, the building inspector of Chelsea had second thoughts, and revoked the portion of the certificate relating to asphalt storage “pending the satisfactory documentation regarding the emission of objectionable vapors.” Belcher continued to press for full approval, but decided to withdraw its application in February, 1987. In March, 1987, Belcher again applied for a certificate of occupancy.

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Bluebook (online)
555 N.E.2d 534, 407 Mass. 703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derby-refining-co-v-city-of-chelsea-mass-1990.