IN THE MATTER OF THE APPLICATION OF THE BOROUGH OF ENGLEWOOD CLIFFS, ETC. (L-6119-15, BERGEN COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 15, 2022
DocketA-3119-20
StatusPublished

This text of IN THE MATTER OF THE APPLICATION OF THE BOROUGH OF ENGLEWOOD CLIFFS, ETC. (L-6119-15, BERGEN COUNTY AND STATEWIDE) (IN THE MATTER OF THE APPLICATION OF THE BOROUGH OF ENGLEWOOD CLIFFS, ETC. (L-6119-15, BERGEN COUNTY AND STATEWIDE)) 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
IN THE MATTER OF THE APPLICATION OF THE BOROUGH OF ENGLEWOOD CLIFFS, ETC. (L-6119-15, BERGEN COUNTY AND STATEWIDE), (N.J. Ct. App. 2022).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-3119-20

IN THE MATTER OF THE APPLICATION OF THE APPROVED FOR PUBLICATION BOROUGH OF ENGLEWOOD July 15, 2022 CLIFFS, a municipal APPELLATE DIVISION corporation of the State of New Jersey. ___________________________

Argued April 6, 2022 – Decided July 15, 2022

Before Judges Gilson, Gooden Brown, and Gummer.

On appeal from the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-6119-15.

Robert A. Magnanini argued the cause for appellant Borough of Englewood Cliffs (Stone & Magnanini LLP, attorneys; Robert A. Magnanini, on the briefs).

Thomas F. Carroll, III and Antimo A. Del Vecchio argued the cause for respondent 800 Sylvan Avenue, LLC (Hill Wallack LLP and Beattie Padovano, LLC, attorneys; Thomas F. Carroll, III, Antimo A. Del Vecchio, and Daniel L. Steinhagen, on the brief).

Joshua D. Bauers argued the cause for intervenor respondent Fair Share Housing Center (Joshua D. Bauers, of counsel and on the brief; Adam M. Gordon, on the brief).

The opinion of the court was delivered by

GILSON, J.A.D. Municipalities have constitutional obligations to provide for their fair

share of the regional need for affordable housing. See In re Adoption of

N.J.A.C. 5:96 & 5:97 (Mount Laurel IV), 221 N.J. 1 (2015); the Fair Housing

Act, N.J.S.A. 52:27D-301 to -329.4. After years of litigation and a trial, the trial

court found that the Borough of Englewood Cliffs (the Borough) had failed to

comply with its constitutional obligations and awarded a builder's remedy to

allow affordable housing to be built in the Borough.

Thereafter, the Borough negotiated and entered into settlement

agreements to allow affordable housing to be built. Those settlement

agreements were submitted to the trial court and accepted after the court had

conducted a fairness hearing. Following a change in the membership of the

Borough's council, the Borough moved to vacate the settlement agreements,

contending that two council members who had voted for the agreements had

conflicts of interest. That argument was in direct contradiction to the position

the Borough had taken before the trial court and in a related litigation where the

Borough had argued that there were no conflicts of interest. Accordingly, the

trial court rejected the Borough's argument for several reasons, including that

the Borough was judicially estopped from claiming a conflict. The trial court,

thereafter, entered a final judgment based on the settlement agreements.

A-3119-20 2 The Borough now appeals from the order denying its motion to vacate the

settlement agreements and the final judgment enforcing those agreements. We

reject the Borough's arguments and affirm.

I.

In 2015, the Borough filed this action seeking a declaration that its

affordable housing plan was constitutionally compliant (the DJ Action). The

Borough also sought immunity from being sued by third parties to comply with

its fair-housing obligations. The Fair Share Housing Center (Fair Share), a non-

profit organization that advocates for affordable housing, and 800 Sylvan

Avenue, LLC (Sylvan), the owner of property in the Borough, both intervened

in the action. Thereafter, Sylvan and Fair Share spent several years trying to

negotiate a settlement with the Borough.

On August 27, 2019, when no settlement had been reached, the trial court

issued an order and opinion granting Sylvan's motion to terminate the Borough's

immunity from builder's remedy lawsuits. 1 The court found that the Borough

1 "A builder's remedy provides a developer with the means to bring 'about ordinance compliance through litigation.'" In re Twp. of Bordentown, 471 N.J. Super. 196, 221 (App. Div. 2022) (quoting Mount Olive Complex v. Twp. of Mount Olive (Mount Olive II), 356 N.J. Super. 500, 505 (App. Div. 2003)).

A-3119-20 3 had acted in "bad faith" and had made a "concerted effort" to avoid compliance

with its affordable housing obligations.

Thereafter, the trial judge, Christine A. Farrington, J.S.C., conducted a

trial to determine whether the Borough's affordable-housing plan was

constitutionally compliant. On January 17, 2020, at the conclusion of phase one

of the trial, Judge Farrington issued an order and a thorough 129-page opinion

finding that the Borough's affordable housing plan, which had been adopted in

2018, was constitutionally non-compliant. The judge directed the Borough to

prepare a new compliance plan and revise its zoning ordinances within ninety

days.

On February 12, 2020, at the conclusion of phase two of the trial, Judge

Farrington issued an order and written opinion granting Sylvan site-specific

relief in the form of a builder's remedy. The judge directed the Borough to re-

zone Sylvan's property to allow for the construction of 600 dwelling units,

including 120 units of affordable housing.

The Borough refused to comply with the court's orders. It adopted a

resolution declaring that it was "not willing to rezone the sites the Court has

ordered it to rezone." The Borough also did not adopt a new affordable -housing

compliance plan within the ninety days as directed by the trial court.

A-3119-20 4 On April 17, 2020, Judge Farrington issued an order finding the Borough

in contempt. To compel compliance, the judge voided the Borough's zoning

ordinances, stripped its planning board of the ability to review land-use

applications, and appointed a special hearing officer to review development

applications, including Sylvan's plan. The Borough twice sought leave to

appeal, but we denied those motions.

The Borough then re-instituted settlement negotiations to try to resolve

the litigation. On October 4, 2020, the Borough council met to consider

approving two settlement agreements: one with Fair Share and one with Sylvan.

During that meeting, Hemant Mehta, a Borough resident, objected to the

settlement agreements and argued that council members Deborah Tsabari and

Edward Aversa should not vote on the agreements because they had conflicts.

Several months before the October 2020 council meeting, Mehta had filed

an action in lieu of a prerogative writ seeking, among other things, to restrain

Tsabari and Aversa from voting on or participating in all matters related to the

Sylvan property. Mehta asserted that Tsabari had a conflict because she owned

property within 200 feet of the Sylvan site and Aversa had a conflict because his

dental office was located within a proposed overlay zone. That prerogative writ

A-3119-20 5 action was heard by Judge Farrington, who was also presiding over the

Borough's DJ Action.

In opposition to Mehta's position on a motion for reconsideration, the

Borough filed papers contending that neither Aversa nor Tsabari had conflicts

and that the council members' interests were "common with the other members

of the public" because the Borough covered a small geographic area and the

location of affordable housing within the Borough would have the same effect

on all Borough residents, including council members. The court in the Mehta

action refused to enter restraints against the council members and ultimately

dismissed Mehta's prerogative writ complaint with prejudice.

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