Orange Lake Associates, Inc. v. Kirkpatrick

825 F. Supp. 1169, 1993 U.S. Dist. LEXIS 9302, 1993 WL 249128
CourtDistrict Court, S.D. New York
DecidedJuly 7, 1993
Docket92 Civ. 0183 (GLG)
StatusPublished
Cited by17 cases

This text of 825 F. Supp. 1169 (Orange Lake Associates, Inc. v. Kirkpatrick) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orange Lake Associates, Inc. v. Kirkpatrick, 825 F. Supp. 1169, 1993 U.S. Dist. LEXIS 9302, 1993 WL 249128 (S.D.N.Y. 1993).

Opinion

OPINION

GOETTEL, District Judge.

This action involves a dispute between Plaintiff Orange Lake Associates, a residential development corporation, and Defendants who were members of the Town Board of the Town of Newburgh between 1987 and 1991. Plaintiff complains that the Board’s treat-mént of its housing development proposal— the delays, the adoption of a new Master Plan for the Town and the eventual rezoning by the town obstructed the development of “affordable” housing in the Town and violated its rights under the Fourteenth Amendment of the United States Constitution. Plaintiff has brought this action for damages.

I. STATEMENT OF THE FACTS

Plaintiff Orange Lake Associates, Inc., a New York Corporation formed in May 1990, acquired the right to develop several parcels of property (totalling some 150 acres) located within the Town of Newburgh, New York, adjacent to Orange Lake, a Lake sometimes used for recreational purposes located within the Town. 1 All this land was zoned “R3” at the time the contracts were first signed, meaning that it could support 12 residential units per acre. Down payments totalling $232,500 were made in connection with the acquisition of these development rights. Title was never closed on the contracts and Plaintiff has forfeited all rights to develop any of the • properties for failure to make payments under the respective contracts. In addition, plaintiff secured a right of way on another parcel permitting access to Route 52, a state road intersecting its property.

Defendants, all present or former Town officials and/or members of the Town Board, who have been sued only in their individual capacities, maintain that from 1987 through 1990, the Town Board had under consideration several proposals, to handle the Town's rapid population growth, including expansion of municipal water and sewer services, adoption of a Master Plan and amendments to the Town zoning ordinances. The Town Board is the governing body for the Town of New-burgh. In March 1988, the Town Board began a study of a proposal to increase its sewage treatment capacity by entering into a contract with the City of Newburgh to expand the City’s existing sewage treatment *1171 plant. The Town Board considered a Draft Environmental Impact Statement (EIS) prepared in connection with the sewage expansion proposal and approved the contract between the Town and City for expansion of the plant in October 1988. In 1988, the Town Board also retained a planning consultant to help prepare a new Master Plan for the Town of Newburgh.

In May 1989, Orange Lake Partners, a partnership between Cunningham and Fred Straub, presented an application to the Town’s Planning Board for a residential condominium development to be called “The Commons at Orange Lake.” The proposal called for the construction of over 500 townhouse and condominium units, representing an average of approximately 5 units per acre. Plaintiff alleges that in November 1987, at a meeting between Straub and then Town Supervisor Kirkpatrick wherein the idea for the Commons project was initially raised, defendant Kirkpatrick told Straub that if Plaintiff attempted to present to the Planning Board its proposal for the Commons Project at that time (including its own water and sewer systems in lieu of Town facilities) Kirkpatrick would personally make sure that the process was delayed “until hell freezes over.” Defendant Kirkpatrick denies making this statement. In a letter accompanying the submission of the Environmental Assessment Form for the. project, Cunningham stated that a “fair proportion of the proposed subdivision is directed toward moderately priced housing, which is expected to provide a first home for many of the young people entering the work force in our growing economy.”

Plaintiff alleges that the passage of a Sewer Bond Draft EIS in July and August of 1988, which alluded to substantial expected growth in the area of the Commons Project, led it to believe that the Town Board would no longer obstruct its project. It submitted an application to the Planning Board on May 2,1989. In July 1989, Orange Lake Partners made the first public presentation of its proposal for The Commons to the Planning Board. Defendants allege that at the meeting, the Board’s attorney advised the developers that the rezoning under consideration by the Town might impact their development plans. Board members also indicated their belief that the proper way to service a project of such size was by municipal sewers, not private, on-site treatment plants. The Board suggested that Orange Lake Partners inquire of the Town Board concerning extension of municipal, services to the site. Plaintiff viewed this suggestion as an exercise in futility given that the Town Board had recently rejected the proposal to extend municipal services made by another proposed Town housing development, High Ridge, which was designed to include 300 single-family and two-family residences. Plaintiff alleges that it reaffirmed its commitment to dedicate a portion of The Commons to affordable housing.

One week later, on July 19, 1989, Master Plan Report No.' 1 was presented to the Town Board by Garling Associates, the planning consultants retained by the Town. In the report, Garling recommended that the Town restrict sewer extensions to control development in more fragile environments such as the Orange Lake area. On July 24, 1989, the sponsors of The Commons formally requested an extension of municipal services to the lands forming the site of the proposed development. Defendants point out that no petitions from property owners who would be affected by such an extension were submitted in support of the request as required under New York Town Law § 191.

In September 1989, the Full Environmental Assessment Form of The Commons was accepted and the Planning Board referred Orange Lake Partners’ application to Garling Associates for a review and report. At this point, plaintiff claims it was informed that the Town was contemplating rezoning the area proposed as the site for The Commons.

Toward the end of September 1989, Gar-ling Associates issued its report identifying several deficiencies in the application including the lack of room for sewage treatment on-site and the present non-existence of adequate facilities off-site. The Garling report-also reported that the proposal was inconsistent with current zoning ordinances which required multiple dwellings to be serviced by Town water facilities.

*1172 On October 20, 1989, Garling Associates submitted its Master Plan Report No. 2. The report recommended that: 1) the lands bordering Orange Lake be designated a critical environmental area, and 2) that infrastructure (meaning sewer services) be expanded, but only at “R2” densities (one unit per acre) to proposed developments at The Commons and High Ridge with the attendant costs to be borne by The Commons and High Ridge projects. The report also proposed lesser densities for those properties. Cunningham objected. Plaintiff submitted a corrected Environmental Assessment. Form in May 1990.

Events accelerated in mid-1990. A February 1990 report from Garling Associates allegedly recommended extending municipal water and sewer to the west side of Orange Lake where The Commons would be located. The Town Board proposed an interim zoning plan which would have required minimum two-acre lots.

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Bluebook (online)
825 F. Supp. 1169, 1993 U.S. Dist. LEXIS 9302, 1993 WL 249128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orange-lake-associates-inc-v-kirkpatrick-nysd-1993.