Grasso v. City of New Bedford

9 Mass. L. Rptr. 289
CourtMassachusetts Superior Court
DecidedNovember 2, 1998
DocketNo. 9201987
StatusPublished
Cited by1 cases

This text of 9 Mass. L. Rptr. 289 (Grasso v. City of New Bedford) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grasso v. City of New Bedford, 9 Mass. L. Rptr. 289 (Mass. Ct. App. 1998).

Opinion

Garsh, J.

The plaintiffs, owners of a parcel of property in New Bedford, Massachusetts known as Standard Times Field, commenced the present action against the City of New Bedford (the “City”) and the Executive Office of Environmental Affairs (“EOEA”) seeking compensation for an alleged regulatory taking of that property. This matter is now before the court on the cross-motions for summary judgment filed by the plaintiffs and by the City.3 For the reasons discussed below, the plaintiffs’ motion for summary judgment is denied, and the City’s cross-motion for summary judgment is allowed.

BACKGROUND

The undisputed material facts as established by the summary judgment record are as follows:

Plaintiffs Vincent Grasso (“Grasso”) and Robert Regan (“Regan”) incorporated the Old New Bedford Waterfront Corporation (“ONBW”) to conduct the general business of real estate acquisition, investment, and development. On September 25, 1986, ONBW entered into a purchase and sale agreement to purchase a vacant waterfront parcel of land known as Standard Times Field (the “Parcel”) from Palmer’s Island Corporation for $2.7 million. The Parcel consists of “upland,” which is bounded by New Bedford Harbor, and “submerged land,” which runs under the harbor to Palmer’s Island. The plaintiffs intended to develop the Parcel, which was zoned as an “Industrial B” district, as a marina and waterfront park. They also considered the possibility of developing the upland with condominiums, which would require a zoning change to a “Mixed Use” district since residential uses are not permitted in an “Industrial B” zone. The plaintiffs expected to obtain the necessary zoning change because the Parcel had been vacant since the 1930’s; it was believed to be unsuitable for maritime industrial use due to a hurricane barrier, which effectively blocked direct access to the ocean, and shallow drafts between the upland and Palmer’s Island. The New Bedford Harbor Master Planning Study done in the 1970’s identified the Parcel as most appropriate for parks and beaches. That description continued in a draft New Bedford-Fairhaven Harbor Master Plan being developed at the time that the plaintiffs purchased the Parcel. The Parcel was free of oil and hazardous wastes. The plaintiffs anticipated permitting for all uses to be completed within two years of their purchase of the Parcel.

Pursuant to the federal Clean Waters Act, the City was required to upgrade its Fort Rodman wastewater treatment plant to meet federal secondary treatment effluent limitations.4 To accomplish this, the City needed to construct a secondary wastewater treatment plant to work in tandem with the Fort Rodman plant. Federal funds were available to the City to study, plan, and build the secondary plant, but not to purchase or take by eminent domain private land on which to locate it.

ONBW closed on the purchase of the Parcel on December 30, 1986, financing the deal by executing a promissory note for $2.7 million to the Warren Five Cents Saving Bank (the “Bank”), secured by a mortgage on the Parcel in that amount.

Thereafter, on February 2, 1987, the City filed an Environmental Notification Form (“ENF”) with EOEA, the agency responsible for implementing the Massachusetts Environmental Protection Act (“MEPA”), G.L.c. 20, §§61-62H. The City’s ENF identified four possible locations for the secondary wastewater treatment plant. One of the alternative locations was the upland portion of the Parcel; another involved expansion of the existing Fort Rodman plant onto adjacent property.

The City’s Mayor, John Bullard, publicly opposed the development of the tidelands portion of the Parcel with a marina because it would make it more costly for the City to acquire the upland for a secondary wastewater treatment plant in the event that the upland were to be chosen as the site for the plant. In April of 1987, Mayor Bullard informed ONBW that the City was considering the Parcel as a potential location for its secondary wastewater treatment plant and requested that it delay development plans until the completion of the plant selection process.

Residents from the Fort Rodman neighborhood were adamantly opposed to siting the secondary plant at Fort Rodman. They formed highly active and influential citizen groups, including the Save Fort Rodman Committee and the South End Citizens Association. At all relevant times, these two groups opposed the marina project because they believed that it would increase the cost to the Cily of taking the Parcel for the treatment plant, making it more likely that the Fort Rodman site ultimately would be chosen.

On July 8, 1987, Grasso and Regan formed the Palmers Cove Limited Partnership (the “Partnership”); each was a 49.5% limited partner, and ONBW was the general partner and 1% limited partner. ONBW deeded its title and rights to the Parcel to the Partnership in exchange for the Partnership’s assumption of liability on the promissory note.

On August 27, 1987, ONBW filed an ENF for its waterfront park project with the EOEA.5 The ENF described plans to construct a marina, harbor master’s house, public boardwalk along the water’s edge, two restaurants, a fifty room guest inn, 10,000 gross square feet of marine-related and commercial retail space, and 10,000 gross square feet of neighborhood retail space on the Parcel. The ENF further noted:

[291]*291This parcel is adjacent to a 22+ acre parcel which is currently scheduled for development (see attached site plan). The preferred development program for that parcel is residential with related amenities. However, at present, that parcel is zoned as Industrial B and will require rezoning to accommodate housing. The applicant desires to proceed at this time with the waterfront park project because: (1) the time frame for the residential rezoning has not been defined and (2) the waterfront park is financially and programmatically independent of the residential project (i.e. (a) marina slips are not associated with residential units, and (b) the waterfront park will be developed with or without the residential development). The applicant will submit a separate ENF for the remainder of the parcel at the appropriate time.

Thereafter, on September 30, 1987, Mayor Bullard wrote a letter to EOEA Secretary James Hoyle containing his official comments regarding ONBWs ENF. The Mayor wrote:

I have a major concern about this project’s timing relative to another that is in the planning stages. I am referring to the construction of a secondary wastewater treatment plant in the City of New Bedford . . . On January 30, 1987, the City filed an Environmental Notification Form . . . specifically naming that site as a possible location for our new wastewater treatment plant. . . with the final decision (excluding the approval process through DEQE and EPA) made by next spring.
While primarily concerned about the proposed project because of its timing, I am also equally concerned that the use proposed for what is the largest remaining undeveloped area within a designated port receive a comprehensive review. A comprehensive review cannot be made if the project continues in its current segmented state. It is very clear that the area proposed for development is connected with the land inland from the development. In fact only 14 acres of the proposed development are above the high water mark leaving 22 acres of land to be developed in a manner not mentioned.

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Bluebook (online)
9 Mass. L. Rptr. 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grasso-v-city-of-new-bedford-masssuperct-1998.