STATE OF NEW JERSEY, BY THE DEP VS. 10.041 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 0.808 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 3.814 ACRES (L-2982-17, L-2985-17, 3079-17, OCEAN COUNTY AND STATEWIDE) (CONSOLIDATED)

New Jersey Superior Court Appellate Division·Decided April 16, 2020·No. A-2278-17T4/A-2279-17T4/A-2507-17T4·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NOS. A-2278-17T4

A-2279-17T4

A-2507-17T4

STATE OF NEW JERSEY, BY THE DEPARTMENT OF APPROVED FOR PUBLICATION

ENVIRONMENTAL PROTECTION, April 16, 2020

APPELLATE DIVISION

Plaintiff-Respondent/ Cross-Appellant,

v.

10.041 ACRES OF LAND IN THE BOROUGH OF POINT PLEASANT BEACH, OCEAN COUNTY, NEW JERSEY; RISDEN'S BEACH CORPORATION, fee owner, and JACQUELINE RISDEN, mortgagee,

Defendants-Appellants/ Cross-Respondents.

STATE OF NEW JERSEY, BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION,

Plaintiff-Respondent, v.

0.808 ACRES OF LAND IN THE BOROUGH OF POINT PLEASANT BEACH, OCEAN COUNTY, NEW

JERSEY; THE BEACH CONDOMINIUM ASSOCIATION, INC., and RISDEN'S BEACH CORP.,

Defendants-Appellants.

STATE OF NEW JERSEY, BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION,

Plaintiff-Respondent/ Cross-Appellant,

v.

3.814 ACRES OF LAND IN THE BOROUGH OF POINT PLEASANT BEACH, OCEAN COUNTY, NEW JERSEY, and BRADSHAW'S BEACH HOMEOWNERS ASSOCIATION, LLC,

Defendants-Appellants/ Cross-Respondents.

Argued February 3, 2020 – Decided April 16, 2020 Before Judges Fasciale, Rothstadt and Moynihan.

On appeal from the Superior Court of New Jersey, Law Division, Ocean County, Docket Nos. L-2982-17, L-2985-17 and L-3079-17.

John H. Buonocore, Jr., argued the cause for appellants/cross-respondents Risden's Beach Corp.

and Bradshaw's Beach Homeowner's Association, LLC (McKirdy, Riskin, Olson & DellaPelle, PC, attorneys; John H. Buonocore, Jr., on the briefs).

A-2278-17T4

Brian W. Keatts argued the cause for respondent/cross-appellant (Rutter & Roy, attorneys;

Brian W. Keatts and Heather N. Oehlmann, on the briefs).

The opinion of the court was delivered by FASCIALE, P.J.A.D.

Risden's Beach Corporation, Bradshaw's Beach Homeowner's Association, and Beach Condominium Association are owners of Point Pleasant oceanfront properties that are operated as commercial beaches. 1 The judge issued final judgments authorizing the Department of Environmental Protection (DEP) to take easements for a shore protection system known as the Manasquan Inlet to Barnegat Inlet Hurricane and Storm Damage Reduction Project (the Project). Risden's Beach Corporation (Risden's) and Bradshaw's Beach Homeowner's Association (Bradshaw's) (collectively defendants) appeal from those judgments, which included handwritten paragraph eight stating, "[t]his [c]ourt finds that the taking in this matter shall not interfere with the

1 Beach Condominium Association (Beach Condo) is not participating in the appeal. We listed these appeals (State v. 3.814 Acres of Land in the Borough of Point Pleasant Beach, State v. 10.041 Acres of Land in the Borough of Point Pleasant Beach, and State v. .808 Acres of Land in the Borough of Point Pleasant Beach (collectively Risden's)) back-to-back with sixty-three consolidated cases known as State v. 1 Howe Street Bay Head, LLC (Howe); an individual appeal in New Jersey Department of Environmental Protection v. Midway Beach Condominium Ass'n (Midway); and a pro se appeal entitled State v. Arthur Williams (A-1484-17) (Williams). On this date, we issued opinions in Howe, Midway, and Williams.

A-2278-17T4

right of the property owner to operate a commercial/for profit beach open to the public." DEP cross-appeals, arguing that this paragraph was unnecessary. We direct that the judge delete this quoted language, and we affirm the judgments as to defendants, with further directions that the judge add "and their successors in interest or agents" in those paragraphs of the easement after the name of each defendant.

Risden's Beach Corporation owns and operates a commercial public beach in Point Pleasant. Its property consists of 10.85 acres between the boardwalk and the mean high-water line, known as Block 46.02, Lots 1 and 3. In addition, Beach Condo leases Risden's property that is 0.8 acres, known as Block 46.02, Lot 2, in which Risden's operates a commercial beach. Bradshaw's commercial beach consists of 3.814 acres, known as Block 17.02, Lots 13 and 14.

In November 2014 and January 2015, Donald L. Moliver, DEP's appraiser, sent notification letters to each defendant. Beginning in November 2015, Moliver conducted multiple inspections of defendants' properties. Defendants' counsel 2 expressed concerns about the easement language that gave DEP the right to operate the beaches. A DEP representative

2 Defendants' attorneys represented Risden's and Bradshaw's, but not Beach Condo.

A-2278-17T4

communicated that the language was "to ensure that if an association folds or fails to operate the beach, the State . . . could step in and operate the beach."

On February 21, 2017, Moliver valued Beach Condo's property at $5.29 million before the taking and $5.82 million after the taking. Moliver concluded that DEP should pay $1000 nominal consideration for the easement because the property's value would increase as a result of the taking.

On June 16, 2017, Moliver valued Bradshaw's property at $1.175 million before the taking and $1.233 million after the taking. Moliver speculated that just compensation was $6300, most of which would be paid to obtain a "[t]idelands license" over the new beach that the Project would create.

On July 20, 2017, Moliver valued Risden's property at $7.35 million before the taking and $8.1 million after the taking. Moliver's appraisal determined that the highest and best use of the beach property was recreational activity lots by paid patrons. Moliver noted that parking lot fees and beach badge sales generated the majority of the property's income. The appraiser concluded DEP should pay Risden's $1000 as nominal consideration for the easement.

On August 28, 2017, defense counsel identified numerous concerns with Risden's property appraisal and pointed out that Risden's generated $1.2

A-2278-17T4

million in profits in 2015 that the appraiser ignored. Risden's did not make a counteroffer to DEP.

DEP's easements provided that it could "operate" a public beach on each property.3 Each easement also included the following provision:

Consistent with New Jersey law, during the summer season when lifeguard and other beach amenity services (e.g., beach maintenance, trash removal) are provided by [Risden's or Beach Condo or Bradshaw's 4]

to the public [Risden's or Beach Condo or Bradshaw's]

may charge fees for daily and seasonal beach badges and/or passes, provided [Risden's or Beach Condo or Bradshaw's] allows audit of its records, and access and use of the beach, in accordance with N.J.A.C. 7:7-16.9 (q), (r), (s), (t) and (v)[.]

On September 15, 2017, Risden's and DEP representatives met, but were unable to come to an agreement regarding the easement's language.

On September 22, 2017, Risden's offered to waive any objection to the Project and permanently deed restrict its property to commercial public use, so long as DEP omitted the language authorizing it to operate a beach on the property. DEP rejected Risden's offer, reasoning that the Army Corps of Engineers (Army Corps) would not agree. But, DEP proposed to provide a letter stating it would not exercise its right to operate a commercial beach

3 All easements in this matter include the same language.

4 Each easement used the specific name of each defendant.

A-2278-17T4

unless Risden's failed to do so. DEP's counsel informed defendants that Moliver's valuation included only the real estate, not Risden's business.

Bradshaw's agreed to abide by whatever resolution was reached in negotiations with Risden's. On October 25, 2017, Bradshaw's representatives met with DEP employees in an effort to reach a resolution. One week later, DEP filed its condemnation complaint against Bradshaw's.

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STATE OF NEW JERSEY, BY THE DEP VS. 10.041 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 0.808 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 3.814 ACRES (L-2982-17, L-2985-17, 3079-17, OCEAN COUNTY AND STATEWIDE) (CONSOLIDATED), (N.J. Ct. App. 2020).

STATE OF NEW JERSEY, BY THE DEP VS. 10.041 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 0.808 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 3.814 ACRES (L-2982-17, L-2985-17, 3079-17, OCEAN COUNTY AND STATEWIDE) (CONSOLIDATED) (STATE OF NEW JERSEY, BY THE DEP VS. 10.041 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 0.808 ACRES STATE OF NEW JERSEY, BY THE DEP VS. 3.814 ACRES (L-2982-17, L-2985-17, 3079-17, OCEAN COUNTY AND STATEWIDE) (CONSOLIDATED)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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