JSTAR, LLC VS. NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION - LAND USE REGULATION PROGRAM

New Jersey Superior Court Appellate Division·Decided July 16, 2020·No. A-1745-18T1·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-1745-18T1

JSTAR, LLC, Appellant,

v.

NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION -LAND USE REGULATION PROGRAM

and

RTS IV, LLC a/k/a JOSEPH R. PRESTIFILIPPO, JR., No 1506-04-0203.6 CAF180001,

Respondents.

Submitted March 23, 2020 – Decided July 16, 2020 Before Judges Rothstadt, Moynihan and Mitterhoff.

On appeal from the New Jersey Department of Environmental Protection.

R.C. Shea & Associates, attorneys for appellant (Robert C. Shea, of counsel; Dina M. Vicari, on the briefs).

Gurbir S. Grewal, Attorney General, attorney for respondent New Jersey Department of Environmental Protection (Donna Arons, Assistant Attorney General, of counsel; Jason Brandon Kane, Deputy Attorney General, on the brief).

King Kitrick Jackson McWeeney & Wells, LLC, attorneys for respondent RTS (John J. Jackson III and Jilian L. McLeer, on the brief).

PER CURIAM JSTAR, LLC appeals from the New Jersey Department of Environmental Protection's (DEP) November 8, 2018 final agency decision, granting a Coastal Area Facility Review Act (CAFRA), N.J.S.A. 13:19-1 to -21, Individual Permit to RTS IV, LLC (RTS). The CAFRA permit was issued in connection with RTS's proposal to construct a residential development in Brick Township to be called "Osborn Estates." The development called for the construction of seven single-family homes located on a portion of a former residential community that was commonly known as "Camp Osborn" that had been destroyed by Superstorm Sandy.

On appeal, JSTAR argues that: (1) RTS failed to provide the public with proper notice of its CAFRA permit application, as both the description of the proposed development was insufficient and property owners entitled to notice were never notified; (2) JSTAR, as well as the public, was not afforded adequate

A-1745-18T1

due process; (3) RTS's application was not "substantiated by sufficient information and empirical data," thus violating numerous regulatory provisions; and (4) RTS is precluded from modifying its CAFRA permit. We affirm, as we conclude that JSTAR failed to establish that the DEP's granting of the CAFRA permit was arbitrary, capricious, or unreasonable, and its arguments to the contrary are without merit.

I.

The Property and the Project RTS's site is approximately 1.405 acres and located in Block 36 Lot 12.

Cummings Street, which was also destroyed by Superstorm Sandy, is located on RTS's property and runs west to east from Route 35.1 It lies between the proposed Osborn Estates and property that is being redeveloped by the Osborn Sea-Bay Condominium Association (OSBCA) that is located in Block 13.2 In

1 "Cummings Street" is at times referred to in the record as "Cummins Street."

2 In In re JSTAR, LLC v. N.J. Department of Environmental Protection-Land Use Regulation Program, No. A-4483-17, (App. Div. Apr. 27, 2020) (JSTAR I), we affirmed the DEP's issuance of a CAFRA permit for OSBCA's project. In that opinion, we rejected challenges raised by JSTAR that were similar, if not identical, to many of those raised in the present appeal.

OSBCA's proposal called for, among other things, the construction of an extension of Cummings Street that would run from north to south on its property, eventually connecting with the east-west portion of Cummings Street that RTS proposed to redevelop.

A-1745-18T1

addition to the seven single-family homes, RTS's proposed development called for the reconstruction of Cummings Street, and the construction of a six-foot- wide dune walkover, allowing beach access for Osborn Estates residents.

OSBCA's property is to the north of RTS's proposed development, and single-family residences are located to the south in Block 36 Lots 11.01 through 11. JSTAR owns the property on Lots 11.06 and 11.07 in Block 36. To the east of RTS's property lies the United States Army Corps. of Engineers (Army Corps.) dune project adjacent to the beach. Route 35 lies to the west.

The CAFRA Individual Permit Application On June 26, 2018, RTS submitted an application requesting a CAFRA permit for Osborn Estates. Included in RTS's application was a CAFRA Individual Permit Environmental Impact Statement (EIS) rendered by DuBois Environmental Consultants (Dubois), as well as a Stormwater Management Report prepared by Lindstrom, Diessner & Carr, P.C. (LDC).

RTS submitted notice of its application by certified mail to the Planning Board and Soil Conservation District of Ocean County, as well as the Construction Official, Planning Board, and Environmental Commission of Brick Township. It also published a copy of the notice in the Asbury Park Press.

A-1745-18T1

In a letter dated July 25, 2018, the DEP notified RTS that its application was sufficient, that it would be considered and published in the DEP Bulletin on August 15, 2018, and it would be subject to a public comment period of thirty days from the date of the publication. The letter required RTS to provide notice of the public comment period in accordance with N.J.A.C. 7:7-24.4, including "[n]otification, by certified mail, to all owners of real property, including easements, as shown on [the] current tax duplicate, within 200 feet of the . . . properties on which the proposed development would occur."

On July 31, 2018, RTS sent letters, by certified mail, notifying property owners within 200 feet of Osborn Estates, as determined by the municipality, of its permit application. The notice advised that the thirty-day public comment period would begin on August 15, 2018, and that RTS's complete application could be viewed at the municipal clerk's office or by appointment at the DEP's office in Trenton. The notice directed that written comments could be submitted to the DEP. Appended to the notice was a copy of the Osborn Estates site plan.

On July 23, 2018, the DEP contacted Dubois, requesting a copy of a Letter of Map Revision (LOMR) issued by the Federal Emergency Management Agency (FEMA) for RTS's proposed development. The DEP also requested that RTS provide it with supplemental information concerning flood elevation levels

A-1745-18T1

based on the LOMR, as well as information concerning a gravel roadway existing on the property. In response, LDC emailed the requested information, attaching a copy of the LOMR issued by FEMA. The DEP later requested that LDC revise the flood hazard notes and the development's grading and utilities plan. LDC made the requested revisions on behalf of RTS.

On August 15, 2018, the DEP published RTS's permit application in the DEP Bulletin. The publication described the requested permit, informed readers of the date that the application was received, and indicated the thirty-day public comment period had begun.

In an August 29, 2018 letter to the DEP, JSTAR objected to the permit being issued to RTS. JSTAR attached two reports, prepared by separate consulting firms, concluding that RTS's proposed development did no t comply with the DEP's Coastal Zone Management (CZM) rules, N.J.A.C. 7:7-1.1 to - 29.10, and the Flood Hazard Area Control Act (FHACA) rules, N.J.A.C. 7:13- 1.1 to -24.11. RTS sent the DEP a September 25, 2018 letter responding to the arguments raised by JSTAR. RTS also included a supplemental policy compliance statement.

On November 1, 2018, the DEP issued an environmental report for Osborn Estates, concluding:

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