Lokal Stockton LLC v. City of Cape May, City of Cape May Historic Preservation Commission

New Jersey Superior Court Appellate Division·Decided December 22, 2025·No. A-3372-23/A-0234-24·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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 NOS. A-3372-23

A-0234-24

LOKAL STOCKTON LLC, Plaintiff-Appellant,

v.

CITY OF CAPE MAY, CITY OF CAPE MAY HISTORIC PRESERVATION COMMISSION, and CITY OF CAPE MAY ZONING BOARD OF ADJUSTMENT,

Defendants-Respondents.

Argued December 11, 2025 – Decided December 22, 2025 Before Judges Mawla, Bishop-Thompson, and Puglisi.

On appeal from the Superior Court of New Jersey, Law Division, Cape May County, Docket No. L-0120-22.

Robert S. Baranowski, Jr., argued the cause for appellant (Hyland Levin Shapiro, LLP, attorneys;

Robert S. Baranowski, Jr., and Peter A. Chacanias, on the briefs).

Christopher Gillin-Schwartz (Gillin-Schwartz Law, LLC) argued the cause for respondents City of Cape May and City of Cape May Historic Preservation Commission.

Victor R. Garlitos, III, argued the cause for respondent City of Cape May Zoning Board of Adjustment (KingBarnes, attorneys; Richard M. King, Jr., and Marisa J. Hermanovich, on the brief).

PER CURIAM These are consolidated appeals. In A-3372-23, plaintiff Lokal Stockton LLC appeals from an August 25, 2023 order dismissing plaintiff's prerogative writs claims against defendants City of Cape May, City of Cape May Historic Preservation Commission (HPC), and City of Cape May Zoning Board of Adjustment; a related order dated December 19, 2023, denying plaintiff's motion to quash a subpoena; and a June 26, 2024 order granting defendants summary judgment and dismissing the remainder of plaintiff's claims. In A-0234-24, plaintiff challenges an August 9, 2024 order adjudicating its request for a stay pending appeal and granting defendants' cross-motions to enforce litigants' rights. We stayed both matters pending appeal and now vacate the stay and affirm for the reasons expressed in this opinion.

A-3372-23

A-3372-23

In 2018, plaintiff purchased property in the Cape May historic district and applied for a construction permit. The application was referred to the HPC, which held a hearing and considered testimony from plaintiff's project manager, who worked for an architectural firm, and appeared on plaintiff's behalf. The HPC passed a resolution (the 2018 HPC Resolution) granting plaintiff a certificate of appropriateness (COA) pursuant to certain conditions agreed to by the project manager. Paragraph four of the resolution recited the following reasons for the HPC's action and conditions for future approval:

a. The applicant previously received conceptual approval. The final application has made two changes: 1) rail detail; 2) stairs.

b. The subject property has been much modified over the years. The proposed renovations are an improvement.

c. The proposed railing system is too contemporary for this building. The applicant has agreed to redesign the railing system in the Chippendale style.

d. The applicant has agreed to retain the original front stair bridge design.

e. Other materials to be used will be a standing seam metal roof, less than one-half inch;

Anderson Woodwright 400 Series windows;

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wood doors; brick foundation; wood fences; IPC decking.

f. Applicant has agreed to use all cedar clapboard siding. No Azec will be utilized, rather wood materials.

g. Applicant will submit lighting plan, foundation, pavers, and sealed architectural plans to Review Committee for final approval.

h. All applicable design standards will be met.

In January 2019, plaintiff sought certain variances from the Cape May Planning Board, including a variance for the surface material to pave the parking area. Plaintiff's co-owners and the project manager relied upon the 2018 HPC Resolution as part of the variance application. One co-owner represented the project was consistent with the resolution's requirements regarding the railing and the stairs. The Planning Board voted to permit pavers in the parking area and reiterated HPC approval was required for the renovations.

In March 2019, the Zoning Board's engineer reviewed plaintiff's application for compliance and notified both the Zoning and Planning Boards plaintiff's architectural plans were revised to comply with the HPC conditions. The engineer stated final approval from the HPC was required to deem the application complete.

A-3372-23

Plaintiff made renovations and created a boutique micro-hotel with eight apartment-style hotel rooms. The engineer and other city employees inspected the property multiple times between April and December 2019. A July 9, 2019 inspection report questioned whether construction of a block wall was consistent with the plans.

On July 19, 2019, the engineer inspected the property and notified plaintiff's contractor of "non-compliant site plan issues," but the contractor stated he was doing what the owner wanted. The engineer also noted plaintiff used clamshells for the parking area, contrary to the Planning Board's approval of pavers. The contractor believed the owner planned to seek a variance for using the clamshells and requested a temporary certificate of occupancy (TCO) to open the hotel in July 2019.

On July 24, 2019, the engineer informed the city construction official the parking surface did not comply with the architectural plans but recommended the issuance of a TCO. A TCO was issued two days later and subsequently renewed on multiple occasions between August 25, 2019 and June 3, 2024.

In August 2019, plaintiff again sought variances and site-plan approval from the Planning Board. The Board noted plaintiff had constructed a block wall, which was not previously approved, and a railing system, which did not

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comply with the conditions in the 2018 HPC Resolution. Plaintiff agreed to return to the HPC for approval of the deviations from the resolution's conditions.

The Planning Board also addressed plaintiff's use of clamshells for the parking area. The city engineer explained clamshells were prohibited because they were a potential safety hazard. On September 10, 2019, the Board passed a resolution denying plaintiff's request for variances and referred the matter to the HPC to decide whether the changes in the plans were acceptable.

Plaintiff applied to the HPC for final approval of the renovations. In December 2019, the engineer inspected the property and found the fencing and wall did not comply with HPC requirements, the parking surface used clamshells instead of the approved pavers, and the architectural construction of the building was inconsistent with plaintiff's site plan.

On January 6, 2020, the HPC considered plaintiff's application for final site plan approval. Plaintiff presented the testimony and report of an expert in historical reconstruction who opined the property contributed to the historic district because many renovations were made in the twentieth century, which altered the historical character of the building. The expert also claimed the property was not in the historic district because it was across the street from a cinder block building and a "massive" parking lot.

A-3372-23

One of plaintiff's co-owners testified he was unaware of the August 20, 2018 HPC hearing or the conditions the HPC imposed in the resultant resolution because the project manager "kind of went rogue." The owner claimed he never agreed to meet the HPC's conditions. Regardless, he asserted the conditions were met because the city issued permits for all the construction.

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