Rosenshein Associates v. Borough of Palisades Park

701 A.2d 448, 304 N.J. Super. 438, 1997 N.J. Super. LEXIS 382
CourtNew Jersey Superior Court Appellate Division
DecidedSeptember 26, 1997
StatusPublished
Cited by3 cases

This text of 701 A.2d 448 (Rosenshein Associates v. Borough of Palisades Park) 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
Rosenshein Associates v. Borough of Palisades Park, 701 A.2d 448, 304 N.J. Super. 438, 1997 N.J. Super. LEXIS 382 (N.J. Ct. App. 1997).

Opinion

The opinion of the court was delivered by

CARCHMAN, J.S.C.

(Temporarily Assigned).

Defendant Borough of Palisades Park (Borough) and intervenors David H. Berezin, Amelia Beneduci, Dominie Picinich and Gordana Picinich (intervenors) appeal from a judgment of the Law Division granting to plaintiffs, Rosenshein Associates, Palisades Park Square Corporation and Rosenshein First Development Corp. (plaintiffs) relief a) declaring the Borough’s land use ordinances unconstitutional; b) mandating a review of the ordinances to comply with Southern Burlington County N.A.A.C.P. v. Mount Laurel Township, 92 N.J. 158, 456 A.2d 390 (1983) (Mt. Laurel II); and c) granting a builder’s remedy. The trial court determined that such relief was necessary to meet the constitutional mandate of Mt. Laurel. We affirm.

The subject property consists of thirteen separate lots totalling 16.46 acres on a tract known as the “Long Swamp.” Approximately 6.5 acres are upland or buildable property and the remain[441]*441der are wetlands and not buildable. Significantly, this property represents the last remaining vacant land available for development in the Borough.

This action was commenced in 1990. In September, 1990, Judge Murphy granted the intervenors leave to intervene. In 1991, the trial judge granted plaintiffs’ motion for partial summary judgment and determined that the Borough’s ordinances failed to provide a realistic opportunity for the construction of low and moderate income housing. The trial commenced in 1995. After hearing from conflicting experts presented by both sides, the trial judge first determined the Borough’s fair share requirement and, thereafter, considered the suitability of the property for housing. Finally, the judge awarded a builder’s remedy to plaintiffs.

In 1990, the Borough’s fair share requirement under Mount Laurel II was determined by the Council on Affordable Housing (COAH) to be 222 units. In 1994, during the pendency of this action, COAH revised the fair share allocation and reduced the Borough’s obligation to 28 units which was further reduced by the trial judge to 23 units resulting from a rehabilitation credit for five units.

The court-appointed master, Philip Catón, a professional planner who has served as a court-appointed master in numerous Mt. Laurel cases, opined that the property was suitable for residential development and ultimately recommended that plaintiffs’ proposal of two eight-story residential apartment structures consisting of 140 units in one building and 64 units in the other was a reasonable development of the property and consistent with Borough development. Catón noted, and the trial judge found, that the proposed development would satisfy the Borough’s Mt. Laurel obligation in full. The trial judge adopted the recommendations of the master and awarded a builder’s remedy consistent with those recommendations including granting to the Borough the option of having the affordable units set aside as part of the proposed development or receiving a cash contribution of $10,000 per affordable unit to be used for rehabilitation of existing housing units.

[442]*442During the course of this litigation, plaintiffs’ financial condition was raised as an issue. The record demonstrates that plaintiffs suffered from financial difficulties resulting in the filing of Chapter 11 proceedings in the United States Bankruptcy Court. Among plaintiffs’ outstanding obligations are payment of municipal property taxes. While disputing a significant increase in the assessment of their property from $791,400 to $7,230,600 over a two-year period, plaintiffs have failed to pay property taxes. At the time of trial, plaintiffs’ property tax obligation to the Borough exceeded 1.3 million dollars. Plaintiffs challenged the tax assessments, and that issue is now being adjudicated in an adversary proceeding pending in the Bankruptcy Court.

.On appeal, the Borough raises the following legal arguments:

I— THE BUILDER’S REMEDY SHOULD BE RECONSIDERED BASED ON RESPONDENTS’ FINANCIAL INABILITY TO PROVIDE A REALISTIC OPPORTUNITY FOR THE CONSTRUCTION OF THE BOROUGH’S FAIR SHARE OF LOW AND MODERATE INCOME HOUSING.
II— THE TRIAL COURT ERRED IN AWARDING RESPONDENTS THE BUILDER’S REMEDY.
A. THE ENVIRONMENTAL CONCERNS ON THE SUBJECT PROPERTY PRECLUDE THE AWARD OF THE BUILDER’S REMEDY.
B. THE GRANT OF THE BUILDER’S REMEDY SHOULD BE OVERTURNED BECAUSE OF THE SUBSTANTIAL PLANNING CONCERNS REGARDING THE PROPOSED SITE.

The intervenors raise similar legal arguments:

I— THE GRANT OF A BUILDER’S REMEDY IN THIS CASE AMOUNTED TO AN UNCONSTITUTIONAL TAX ABATEMENT IN VIOLATION OF INTERVENORS’ AND OTHER BOROUGH TAXPAYERS’ RIGHTS TO EQUAL TREATMENT AND EQUAL PROTECTION OF THE LAWS UNDER THE FOURTEENTH AMENDMENT.
II— BUILDER’S REMEDIES UNDER MOUNT LAUREL 11 WERE INTENDED TO PROVIDE “A REALISTIC OPPORTUNITY’ FOR LOWER INCOME HOUSING TO BE BUILT BY REASONABLE BUILDERS, NOT TO INCREASE THE VALUE OF VACANT LANDS OWNED BY BANKRUPT CORPORATIONS.
III— PLAINTIFFS’ LONG SWAMP LOTS CONSTITUTE A WETLANDS AND A NATURAL RESOURCE THAT IS [sic] NOT SUITABLE FOR THE CONSTRUCTION OF HIGH-RISE APARTMENTS.

We have carefully scrutinized the record and conclude that Judge Murphy’s findings and rationale are supported by the [443]*443evidence. We conclude that the Borough’s and intervenors’ contentions are without merit, R. 2:11-3(e)(1)(A) and (E), but both parties raise an additional issue which warrants further comment.

Both the Borough and the intervenors argue that the financial ability of the developer to develop the property is a factor to be considered by the court and, further, the court must determine whether there is a “realistic opportunity” that the project will be completed by this developer. Referring to the financial difficulties of plaintiffs and the Chapter 11 filing, the Borough and intervenors suggest that these plaintiffs do not possess the financial wherewithal to complete this project, and accordingly, the trial court should deny plaintiffs a builder’s remedy.

In Mt. Laurel II, the Court stated: “Every municipality’s land use regulations should provide a realistic opportunity for decent housing____” Mt. Laurel II, supra, 92 N.J. at 214, 456 A.2d 390 (emphasis added). This standard has been applied consistently in Mt. Laurel litigation. See, e.g., Toll Brothers, Inc. v. Township of West Windsor, 303 N.J.Super. 518, 540, 697 A.2d 201 (Law Div.1996) (the municipality has an affirmative duty to create a realistic opportunity for low income housing to be built); Allan-Deane Corp. v. Bedminster Township, 205 N.J.Super. 87, 113, 500 A.2d 49 (Law Div.1985) (“[Rjealistic is defined by the court in terms of ‘likelihood’.”).

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701 A.2d 448, 304 N.J. Super. 438, 1997 N.J. Super. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenshein-associates-v-borough-of-palisades-park-njsuperctappdiv-1997.