Peapack-Gladstone v. Borough of Peapack-Gladstone Land Use Board

971 A.2d 449, 407 N.J. Super. 404
CourtNew Jersey Superior Court Appellate Division
DecidedJune 10, 2009
DocketA-4668-07T3
StatusPublished
Cited by12 cases

This text of 971 A.2d 449 (Peapack-Gladstone v. Borough of Peapack-Gladstone Land Use Board) 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
Peapack-Gladstone v. Borough of Peapack-Gladstone Land Use Board, 971 A.2d 449, 407 N.J. Super. 404 (N.J. Ct. App. 2009).

Opinion

971 A.2d 449 (2009)
407 N.J. Super. 404

FRIENDS OF PEAPACK-GLADSTONE, Plaintiff-Appellant,
v.
BOROUGH OF PEAPACK-GLADSTONE LAND USE BOARD; The Mayor and Council of the Borough of Peapack-Gladstone; HF Cottages, L.L.C.; and HF Development, L.L.C., Defendants-Respondents.

No. A-4668-07T3

Superior Court of New Jersey, Appellate Division.

Argued March 30, 2009.
Decided June 10, 2009.

*450 Nicole Bearce Albano argued the cause for appellant (Lowenstein Sandler, PC, attorneys; Ms. Albano, of counsel and on the brief; David M. Reiner, Roseland, on the brief).

Edward J. Trawinski, Clifton, argued the cause for respondent Borough of Peapack-Gladstone (Schenck, Price, Smith & King, LLP, attorneys, join in the brief of respondents HF Cottages, LLC, and HF Development, LLC).

Sharon H. Moore argued the cause for respondents Mayor and Council of the Borough of Peapack-Gladstone (Gebhardt & Kiefer, attorneys, join in the brief of respondents HF Cottages, LLC, and HF Development, LLC).

Christopher John Stracco argued the cause for respondents HF Cottages, LLC, and HF Development, LLC (Day Pitney, LLP, attorneys; Mr. Stracco and Jennifer Gorga Capone, on the brief).

Before Judges R.B. COLEMAN, SABATINO and SIMONELLI.

The opinion of the court was delivered by

SABATINO, J.A.D.

This is an appeal of a settlement entered into between a real estate developer and a local land use board. The settlement was approved by the trial court following a hearing before the board consistent with Whispering Woods at Bamm *451 Hollow, Inc. v. Twp. of Middletown Planning Bd., 220 N.J.Super. 161, 531 A.2d 770 (Law Div.1987). Appellants, a coalition of local residents who object to the proposed development, challenge the settlement as procedurally and substantively flawed. They principally contend that the developer was improperly allowed through the settlement to circumvent current density requirements for its property, and that the matter must be remanded to reconsider the propriety of density variances. We affirm.

I.

The land use application involved in this litigation has an intricate history dating back more than a decade. We summarize the events most relevant to our consideration of the legal issues raised on appeal.

Defendants, HF Cottage, LLC, and HF Development, LLC (collectively, "HFGC" or "the developer"), are the owners of 73.25 acres of real property located in the Borough of Peapack-Gladstone ("the Borough"), east of Fowler Road, near where that road intersects with Brady Road. The property is designated as Block 33, Lots 13.05 through 13.18, and Lots 13.20 through 13.23, on the Borough's tax map. The property, which was at one time part of a larger 179.67 acre tract, is adjacent to Hamilton Farms Golf Club, a private golf club.

In 1998, HFGC's predecessor in interest, Peapack DG Properties, LLC ("DG"), applied to the Borough's Land Use Board ("the Board") for preliminary major site plan, subdivision, and general developmental approval for the original 179.67 acre tract. In particular, DG sought approval to build eighteen golf cottages on the site, which would be developed for use as corporate accommodations. At the time, the pertinent zoning ordinance (for the then-existing Zone R-2A) would have permitted thirty-four single-family residences on the property. DG proposed that the remaining 33.78 acres would be preserved as open space.

On February 3, 1999, the Board acted on DG's application. The Board approved construction of the eighteen corporate cottages, with the significant proviso that the cottages would be used for meetings and overnight accommodations by members of the golf club and their guests, and would not be used as single-family residences. The Board also granted DG preliminary site plan and subdivision approval, specifying in its resolution that the property would have ten years of prospective land use protection for the development of the cottages.

Thereafter, on September 27, 2001, HFGC, as DG's successor in interest, filed an application with the Board for final major subdivision approval. After a hearing on November 7, 2001, the Board approved that application, and a memorializing resolution was adopted on December 5, 2001. Title to the property was conveyed by DG to HFGC the day after the hearing. In issuing this final approval, the Board reaffirmed its earlier condition that none of the cottages would be used as principal residences. Given that requirement, HFGC recorded a Declaration of Restrictive Covenant, dated March 21, 2002, which provided that "in no event shall any [cottage] be used by anyone as a principal residence."

Subsequently, HFGC discovered that eleven of the proposed lots approved for development were physically located outside of the Borough's sewer district. Accordingly, in early 2002, HFGC applied for amended preliminary site plan and subdivision approvals to construct the cottages in two phases: Phase One, relating to the portion of the property located within the sewer district, which would include seven *452 cottages; and Phase Two, which would include the eleven remaining lots located outside of the sewer district. On June 19, 2002, the Board granted these amended approvals, authorizing the project to be developed in the two Phases.

In February 2003, HFGC applied to the Board for final major subdivision approval for Phase One. During the hearing on that application, HFGC's representatives reassured the Board that the cottages would essentially "end up being second homes... but [] not principal residences[.]" Following that hearing, on April 16, 2003, the Board adopted a resolution granting the requested approvals for Phase One.

On May 24, 2004, HFGC filed an application with the Board for final major subdivision approval for Phase Two. The Board likewise granted that application for Phase Two, memorializing the approval in a resolution dated July 21, 2004. Following these approvals covering both Phase One and Phase Two, a final major subdivision map depicting the property with eighteen lots was duly recorded with the Somerset County Clerk on October 8, 2004.

Several months later, on March 2, 2005, HFGC filed an application with the Board requesting a change in the anticipated use of the structures. Specifically, HFGC sought to remove the restrictions against primary residential use for the cottages. Instead, HFGC sought to have the Board allow primary residential uses on an age-restricted basis, as permitted in the R-2A zone. After HFGC became aware of neighbors' opposition to the proposed use change, that particular application was withdrawn.

On January 12, 2006, the Borough's zoning official issued a construction permit for Lot 13.06 for the building of the first cottage in Phase One. About three weeks later, the developer obtained an $8 million construction loan to begin construction of Phase One.

Thereafter, on February 2, 2006, HFGC recorded a Declaration of Restrictive Covenants with the Somerset County Clerk. The Declaration restricted the use of the cottages to "lodging" and "entertainment," with provisos that no cottage "may be used as the principal residence of any owner or occupant," and that no individual "may occupy the Lot for more than eight (8) consecutive months, and in the event of any such consecutive use, at least one (1) month of such consecutive use shall occur in the months of June, July, and/or August." The Declaration also provided that ownership of a cottage was restricted to those persons who were members of the adjacent golf club.

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971 A.2d 449, 407 N.J. Super. 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peapack-gladstone-v-borough-of-peapack-gladstone-land-use-board-njsuperctappdiv-2009.