Rauseo ex rel. Suffolk/Medford Realty Trust v. Massachusetts Port Authority

16 Mass. L. Rptr. 770
CourtMassachusetts Superior Court
DecidedAugust 7, 2003
DocketNo. 011053BLS
StatusPublished

This text of 16 Mass. L. Rptr. 770 (Rauseo ex rel. Suffolk/Medford Realty Trust v. Massachusetts Port Authority) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rauseo ex rel. Suffolk/Medford Realty Trust v. Massachusetts Port Authority, 16 Mass. L. Rptr. 770 (Mass. Ct. App. 2003).

Opinion

van Gestel, J.

This matter is before the Court on cross motions for summary judgment pursuant to Mass.R.Civ.P. Rule 56.

BACKGROUND

In 1995, the Massachusetts Port Authority (“Massport”) appealed from the granting of a variance by the Boston Board of Appeal (the “Board”) to Suffolk/Medford Realty Trust (the “Trust”). The variance would permit the Trust to convert a long-vacant warehouse building in Charlestown to “124 Apartments with Ground-Level parking.” The property is to be rehabilitated into residential/studio working space for Boston area artists and other design professionals. Except for Massport, at the time of the granting of the variance, the project received overwhelming support from the immediate neighborhood, from the Mayor’s Office of Cultural Affairs, from the Boston Redevelopment Authority and from the Carpenters Union, AFL-CIO. The variance was granted by a unanimous vote of the Board of Appeal.

In granting the variance, the Board noted “an acute need” in Boston for artists’ studio residences, and found “(r)esidential use of this historic and handsome industrial building will be in harmony with the general purposes of the [Boston Zoning] Code, because it is adjacent to a residential area.” A “menacing eyesore” would be turned into a neighborhood “amenity.” Further, the Board observed that Massport “offered no present likelihood that [an industrial] use could be found for [the building].”

The properly, although abutting a residential area, was in the Terminal Street Manufacturing Subdistrict which was then zoned for industrial and manufacturing uses. Thus the need for the variance.

In July of 1998, Massport entered into an agreement with the Trust whereby for certain rights regarding the property, it dismissed, with prejudice, its appeal of the decision granting the variance concerning the use proposed. Among other things, the agreement of July 8, 1998, included a concession by the Trust that Massport owns and operates substantial areas of industrial property in the near vicinity, thereby generating noise, truck traffic, dust and other activities twenty-four hours a day, to which the Trust and its tenants will not object. Massport also obtained an easement over the property for certain road and other industrial activity and a “right of first offer” to purchase the premises.

The essence of the July 8, 1998, agreement was that Massport was withdrawing its objection to the Trust’s project as approved by the Board of Appeal in return for the concessions noted above and others detailed in the letter. The agreement specifically recites that the “Trust will be allowed to pursue its present plans to rehabilitate the existing building ... on the premises for approximately 124 units (each to accommodate a mixed working studio and residential use) with associated parking to be designed for and marketed to artists ...”

In addition to the zoning issuesolved by the variance and the withdrawal of Massport’s appealthe property is also located within a Designated Port Area (“DPA”), as determined by the Massachusetts Department of Environmental Protection (“DEP”). Both the DEP and the Massachusetts Office of Coastal Zone Management (“CZM”) strongly favor water-dependent industrial uses within a DPA and limit other uses in these areas. Therefore, in addition to the zoning vari-[771]*771anee, the Trust still had to petition the CZM to have the boundaries of the DPA moved such that the project falls outside of them. Massport and the Trust were aware of this issue when they entered into the settlement of the zoning appeal.

Preliminary to proceeding to seek an adjustment in the DPA boundaries, counsel for the Trust wrote to Massport, seeking its support. Massport refused, stating that it “will not support your client’s proposal to re-designate the DPA in Charlestown,” knowing full well that without such a re-designation, the project' could not go forward.

Although there are more facts relating to the efforts of the Trust and its many community supporters, including the Mayor of Boston, to convince Massport to affirmatively support the DPA boundary change so that the project may proceed, Massport remained steadfast in its refusal. As a result, the Trust sought the aid of this Court seeking to enjoin Massport from opposing the DPA change and compelling it to support the petition.

In its memorandum and order on the Trust’s application for a preliminary injunction this Court wrote:

Massport, when it entered into the July 8, 1998, agreement resolving the zoning appeal, entered into a binding contract agreeing to allow the Trust to pursue its plans to rehabilitate the building for 124 units of artists’ studio and residential space, with necessary parking and other amenities. Massport received good and valuable consideration for its agreement. For Massport now to oppose the change in the boundary lines for the DPA, thereby knowingly to prevent the very project it agreed to allow, would constitute at minimum a breach of its contract with the Trust, a violation of its implied covenant of good faith and fair dealing, and quite probably a serious and intentional violation of G.L.c. 93A. See Anthony’s Pier Four, Inc. v. HBC Associates, 411 Mass. 451, 469-74 (1991).
This Court presumes that a responsible public authority would not knowingly commit the breaches and violations just outlined. Indeed, at the oral argument on the request for injunctive relief, counsel for Massport assured this Court that his client did not intend to oppose the Trust’s petition to CZM for a change in the DPA boundary, but rather was simply reserving its rights to make sure that the petition remained consistent with the project approved by the zoning variance. The Court accepts that representation from a respected attorney and officer of the court on behalf of a responsible public authorityand it will hold them both strictly thereto.
On the specific issue of the preliminary injunctive relief, given Massport’s representations to the Court that it will act in a manner fully consistent with the explicit approval of the Trust’s project appearing in the July 8, 1998, letter agreement, no injunction is necessary at this time. Provided, however, that should Massport take a position inconsistent with its agreement and its representations to the Court once the Trust’s petition is submitted to CZM, this Court will act instantly in whatever manner may then be appropriate.

See memorandum and order dated April 2, 2001.

On May 25, 2001, the Trust proceeded with the filing of its petition with CZM. The administrative process was lengthy. CZM began its DPA boundary review in the fall of 2001. In January 2002, two other Mystic River DPA property ownersFlatley and CCC Realty Trustalso petitioned CZM to remove a total of four additional properties from the DPA.

CZM conducted a series of public information meetings and met extensively with owners of DPA properties, City of Boston and state agency staff, and community representatives to gather information and comment on the matters.

At one of the public meetings, someone (not a Massport representative) suggested that Massport’s statement of non-opposition to the Trust’s position had been made under duress. The statement referred to was included in a June 20, 2001, letter from Massport to the Trust, and submitted by the Trust to the CZM. In pertinent part, Massport’s letter read:

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Bluebook (online)
16 Mass. L. Rptr. 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rauseo-ex-rel-suffolkmedford-realty-trust-v-massachusetts-port-authority-masssuperct-2003.