Northeast Land Development, LLC v. City of Scranton

728 F. Supp. 2d 617, 2010 U.S. Dist. LEXIS 76076, 2010 WL 2991226
CourtDistrict Court, M.D. Pennsylvania
DecidedJuly 27, 2010
Docket3:08cv290
StatusPublished
Cited by3 cases

This text of 728 F. Supp. 2d 617 (Northeast Land Development, LLC v. City of Scranton) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northeast Land Development, LLC v. City of Scranton, 728 F. Supp. 2d 617, 2010 U.S. Dist. LEXIS 76076, 2010 WL 2991226 (M.D. Pa. 2010).

Opinion

MEMORANDUM

JAMES M. MUNLEY, District Judge.

Before the court for disposition are the parties’ respective motions for summary judgment (Docs. 35, 40). The motions have been briefed and are ripe for disposition.

BACKGROUND

This case stems from a land development dispute between Plaintiff Northeast Land Development, LLC (“NE Land”) and Defendant the City of Scranton (“the City”). Because the intricacies of the City of Scranton’s land development process greatly inform the court’s analysis, below, a synopsis of the relevant provisions is appropriate.

The first step in the land development process in the City of Scranton is the Application for Subdivision or Land Development. (Application Form for Subdivision or Land Development (Doc. 41-37); Doc. 42 ¶¶ 58, 59). Following the applica *619 tion, a developer submits a Preliminary Plan, which requires the approval of the City Planning Commission and the City Engineer. (Id.) After these approvals, a developer submits a Final Plan for approval by the Scranton City Planning Commission. (Id. ¶ 60). Finally, the developer must enter into a Development Agreement with the City of Scranton. (Id. ¶ 62).

The statutory mechanics underlying the process are as follows: The City of Scranton Subdivision and Land Development Ordinance of 1996 (“Development Ordinance”), codified at Chapter 423 of the Code of Ordinances for the City of Scranton (“City Code”), prohibits land development unless the development follows the provisions of that chapter. Scranton, Pa., Code of Ordinances (“City Code”) ch. 423, art. II, § 423-4(A) (1996), available at http://ecode360.com/?custld=SC1588 (last accessed as of the date of this opinion). Section 423-(4)(B) requires that Final Plans be approved and recorded before any subdivision is developed. City Code ch. 423, art. IV, § 423-4(B). That section also requires that, in accordance with section 423-41, the City either (1) be given “adequate financial security,” or (2) that any required improvements to the land be completed in advance. City Code ch. 423, art. IX, § 423-41. Section 43(A)(1) of the Development Ordinance states:

All applicants proposing any subdivision or land development which provides for the installation of improvements required by this chapter or any improvements or amenities which appear on the final plan shall be required to enter into a legally binding development agreement with the city prior to recording the final plan.... 1

City Code ch. 423, art. IX, § 423-41(A)(1).

Thus, a developer cannot construct a subdivision before he has recorded an approved Final Plan and the City can require the developer to enter into a Development Agreement before recording his approved Final Plan.

Section 423-4(C) states that only “landowners,” including equitable landowners or the landowners’ agents, can apply for approval of a development plan. City Code ch. 423, art. IV, § 423^4(C). A landowner, in turn, is defined in section 423-21 as “[t]he owner of a legal or equitable interest in land, including the holder of a formal option or contract to purchase (whether or not such option or contract is subject to any condition) ... or other person having a proprietary interest in land.” City Code ch. 423, art. IV, § 423-21. Similarly, an applicant is defined as “[a] landowner or developer who has filed an application for a subdivision or land development, including his/her heirs, successors and assignees.” Id.

Section 423-33(F)(l) of the Development Ordinance provides that it is the Planning Commission which renders a “decision” on a Development Plan. City Code ch. 423, art. VII, § 423-33(F)(l). Section 423^3(B) of the Development Ordinance states:

The development agreement shall be acceptable in legal form to the City Solicitor and shall be acceptable in content to the governing body. The city may require that a development agreement to include any of the following items, where applicable, and such additional items as are necessary to carry out this chapter:
1. The construction depicted on the approved plans, listed in itemized format....
2. A work schedule----
*620 3. The provision of a performance guarantee for completion of required improvements....
4. Provisions concerning the developer’s responsibilities for damage to other property, including maintenance by the developer of public liability insurance for the duration of improvements construction [sic], with a hold harmless clause to protect’ the city from liability related to such work. A copy or other evidence of such liability coverage shall be provided to the city prior to such work.
5. Provisions requiring that the applicant and/or other responsible entities ensure that erosion sedimentation and stormwater management plans are complied with.
6. Provisions for the dedication of streets, water and sewer lines....
7. See § 423-49 concerning the requirement for a record-plan.
8. Provisions for the developer to reimburse the city for all reasonable engineering costs directly related to the review, construction and inspection of the proposed development and to the review and preparation of the development agreements.
9. Provisions concerning any violations of the development agreement.
10. Any other lawful terms which the governing body may require to carry out the provisions of this chapter.
11. Signatures. 2

Having surveyed the statutory context in which this case unfolds, the court presents the relevant facts. Plaintiff NE Land is a Pennsylvania Limited Liability Company with its principal place of business in Dunmore, Pennsylvania. (Pl.’s Statement of Material Facts ¶ 1 (Doc. 37)). Christopher Speicher (“Speicher”) and Michael Skoff were the principal board members of NE Land. (Doc. 37 ¶ 6). Speicher was an agent of Community Initiatives Development Corporation I (“CIDC-I”), but not a member. (Def.’s Statement of Material Facts ¶ 4 (Doc. 42); Doc. 37 ¶ 5). CIDC-I is a subsidiary of Community Initiatives Development Corporation (“CIDC”). (Doe. 42 ¶ 5).

The property which led to the dispute was a piece of land — approximately 134 acres — designated as a Keystone Opportunity Zone and owned by Lackawanna Energy, Ltd. and Plum Realty, Ltd. (Agreement of Sale (Doc. 41-5); Doc. 42 ¶¶ 8, 9). In the late-1990s, Christopher Kelleher (“Kelleher”), as President of Lackawanna Energy, Ltd. and Plum Realty, Ltd., approached Speicher to inquire into Speicher’s interest in buying and developing the land. (Doc. 42 ¶¶ 8, 9). Speicher originally had interest in developing the land for commercial use, but settled on residential development when he could not obtain a zoning variance. (Doc. 42 ¶¶ 9, 10).

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Bluebook (online)
728 F. Supp. 2d 617, 2010 U.S. Dist. LEXIS 76076, 2010 WL 2991226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northeast-land-development-llc-v-city-of-scranton-pamd-2010.