Essex County Improvement Authority v. RAR Development Associates

733 A.2d 580, 323 N.J. Super. 505, 1999 N.J. Super. LEXIS 267
CourtNew Jersey Superior Court Appellate Division
DecidedApril 1, 1999
StatusPublished
Cited by6 cases

This text of 733 A.2d 580 (Essex County Improvement Authority v. RAR Development Associates) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Essex County Improvement Authority v. RAR Development Associates, 733 A.2d 580, 323 N.J. Super. 505, 1999 N.J. Super. LEXIS 267 (N.J. Ct. App. 1999).

Opinion

WEISS, A.J.S.C.

I. Background

This matter is before the court on the return date of an Order to Show Cause as to why final judgment should not be entered that the plaintiff, Essex County Improvement Authority (“ECIA”), has duly exercised its power of eminent domain and, therefore, three disinterested commissioners should be appointed to determine the compensation to the defendant, RAR Development Associates (“RAR”), for the taking of its property interest.

On November 20, 1998, a Verified Complaint, a Declaration of Taking and a Lis Pendens was filed by ECIA and an Order to Show Cause was entered by the court. An Order for Payment and Possession was signed by the court on December 1, 1998.

II. Facts

In 1996, the City of Newark agreed to allow the County of Essex to construct a jail in Newark on the condition that the County also construct a minor league baseball stadium and a soccer stadium on county land located in Newark. The County of Essex agreed to use Riverbank Park as the county property on which to build the baseball and soccer stadiums. In addition, the County agreed to construct a replacement park near Riverbank [511]*511Park. In return, the City of Newark agreed to provide fifty percent of the funding needed to build the stadiums and fifty percent of the funding needed to obtain and construct the replacement park. This venture became known as the “Sportsplex Project.”

Under the terms of the agreement between the County of Essex and City of Newark, ECIA was to assume the task of initiating the necessary steps for the development of the jail, the stadiums and the replacement park. On October 16, 1996, the Essex County Freeholders adopted Resolution No. R-96-0565 entitled “Resolution Amending Resolution No. R96-0363.” Resolution No. R-96-0565 identified defendant RAR’s property as the site for the replacement park and authorized ECIA to condemn the property.

ECIA had RAR’s property appraised and investigated for environmental purposes. This process continued into 1997, with one appraisal issued in March 1997 and another in July 1997. Soon thereafter, ECIA made two written offers to RAR for the acquisition of its property. After having made these offers, ECIA learned of environmental contamination at Riverbank Park. As a result, ECIA determined that it would be unsuitable to construct the baseball and soccer stadiums at Riverbank Park and decided to search for a new location. Furthermore, ECIA decided that it would only build the baseball stadium at the new site, instead of both the baseball and soccer stadiums as initially planned.

After ECIA concluded not to build the baseball and soccer stadiums at Riverbank Park and no longer needed to acquire RAR’s property for the construction of the replacement park, Mr. Thomas A. Banker, the Executive Director of ECIA, contacted Mr. Gerald Rubin, the general partner of RAR, by telephone. During the telephone conversation which took place shortly after the July 14, 1997 offer to purchase RAR’s property, Mr. Banker informed Mr. Rubin that Riverbank Park would not be used as the site for the Sportsplex Project because of the environmental contamination found at the location. Mr. Banker also told Mr. Rubin that ECIA was in search of a new site for the Sportsplex [512]*512Project and since Riverbank Park was not going be used as the site for the baseball stadium, RAR’s premises was no longer needed as a replacement park. Thus, ECIA was withdrawing its offer to purchase RAR’s property.

Plaintiffs decision to withdraw the offer to purchase RAR’s property and to abandon the condemnation action against RAR for the taking of its property was confirmed by an October 1, 1997 letter sent to Mr. Rubin by Mr. Banker. The letter specifically •stated:

Please be advised that the Essex County Improvement Authority (“ECIA”) has determined that it is no longer necessary to acquire the property described above, for which you are the record owner, by negotiated sale or eminent domain. By letter dated July 14, 1997, you were extended an offer to purchase the subject property for the amount of $995.000. The ECIA hereby withdraws that offer and provides you with notice of the abandonment of its intention to acquire this property by eminent domain, (“emphasis added”)

After investigating other alternatives, it was decided to construct the baseball stadium on Bridge Street, the new site for the Sportsplex Project. On January 5, 1998, Mr. Banker sent a letter to Mr. Glenn Grant, the Business Administrator of the City of Newark, explaining:

Since Riverbank Park will not be used for the project, there would be no need to build a replacement park, which would therefore be deauthorized.

As a result of the change in location for the stadium, the County of Essex and the City of Newark agreed to amend the original $22,000,000 bond that was issued for the construction of the stadium to reflect the new site on Bridge Street. On January 7, 1998, the Essex County Freeholders adopted Resolution No. R-98-006, which approved the change in the stadium location to Bridge Street, ratified the amendment of the bonds and authorized ECIA to obtain the property located on Bridge Street by eminent domain for the purpose of building the baseball stadium. The language of Resolution No. R-98-006 specifically stated that “there is no longer a need for the Authority to ground lease Riverbank Park from the County pursuant to the terms of that certain “Ground Lease Agreement (Sportsplex Project)” dated as [513]*513of July 1,1997 (the “Ground Lease”) by the County, as lessor, and the Authority, as leasee.”

On January 27, 1998, several resolutions were passed by the Essex County Freeholders. Resolution No. R-98-015 stated that since the location of the baseball stadium had been changed from Riverbank Park, there no longer was the need to acquire RAR’s property.

WHEREAS, the proceeds of the Initial Bonds were originally earmarked to finance (iii) the planning, design, acquisition, construction, installation and renovation of a park (the “Recreational Area”) to consist of courts, fields and playgrounds for general recreational purposes at a site (as more particularly described in Exhibit A to the hereinafter defined Original County Lease, the “Recreational Project Property;” the Recreational Area and the Recreational Project Property shall be collectively referred to as the “Recreational Project”) to be acquired by the Authority on behalf of the County as a replacement for Riverbank Park.
WHEREAS, because the Authority, the County and the City have previously agreed to change the location of the baseball facility away from Riverbank Park, there was no longer a need for the Authority to (I) ground lease Riverbank Park from the County pursuant to the terms of that certain “Ground Lease Agreement (Sportsplex Project)” dated as of July 1,1997 (the “Ground Lease”) by the County, as lessor, and the Authority, as leasee, and there is no longer a need for the Authority to (ii) acquire the Recreational Project Property needed to construct the Recreational Area and (iii) construct the Recreational Project, (“emphasis added”)

Resolution No. R-98-016, also passed on January 27, 1998, contained identical language, stating:

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733 A.2d 580, 323 N.J. Super. 505, 1999 N.J. Super. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/essex-county-improvement-authority-v-rar-development-associates-njsuperctappdiv-1999.