State of New Jersey v. L.D.

130 A.3d 590, 444 N.J. Super. 45
CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 28, 2016
DocketA-4008-14T1
StatusPublished
Cited by8 cases

This text of 130 A.3d 590 (State of New Jersey v. L.D.) 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
State of New Jersey v. L.D., 130 A.3d 590, 444 N.J. Super. 45 (N.J. Ct. App. 2016).

Opinion

RECORD IMPOUNDED

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-4008-14T1

STATE OF NEW JERSEY, APPROVED FOR PUBLICATION

Plaintiff-Appellant, January 28, 2016

v. APPELLATE DIVISION

L.D.,

Defendant-Respondent. _______________________________

Argued October 19, 2015 - Decided January 28, 2016

Before Judges Lihotz, Fasciale and Higbee.1

On appeal from Superior Court of New Jersey, Law Division, Burlington County, Indictment No. 14-06-0086.

Brian J. Uzdavinis, Deputy Attorney General, argued the cause for appellant (John J. Hoffman, Acting Attorney General, attorney; Mr. Uzdavinis, of counsel and on the brief).

James J. Gerrow, Jr., argued the cause for respondent (Sitzler and Sitzler, attorneys; Mr. Gerrow, on the brief).

The opinion of the court was delivered by

LIHOTZ, P.J.A.D.

1 Judge Higbee did not participate in oral argument. She joins the opinion with counsel's consent. R. 2:13-2(b). On our leave granted, the State appeals from a January 22,

2015 order dismissing count two of a Grand Jury indictment,

charging defendant L.D. with second-degree speculating or

wagering on official action or information, N.J.S.A. 2C:30-3.

The State alleged defendant used information he received in his

official position as a local government official to purchase

farmland for the sole purpose of selling development rights

attached to the property to a developer undertaking a project in

the municipality.2 Defendant moved to dismiss this charge,

arguing his actions were based on public information and not

confidential facts gained through his official position. The

motion judge agreed and ordered dismissal of count two of the

indictment, without prejudice.

On appeal, the State seeks reversal, arguing:

THE STATE PRESENTED THE GRAND JURY WITH MORE THAN SUFFICIENT EVIDENCE TO SUPPORT A PRIMA FACIE CASE THAT DEFENDANT COMMITTED THE CRIME OF SPECULATING OR WAGERING ON OFFICIAL ACTION OR INFORMATION.3

2 Count one of the indictment charged second-degree official misconduct, N.J.S.A. 2C:30-2(a), relating to defendant's alleged official actions, including voting to adopt township ordinances and planning board resolutions to aid the development, without disclosing his personal relationship with the developer. 3 The State also contends the judge improperly made factual findings unsupported by the record.

2 A-4008-14T1 For the reasons stated in our opinion, we affirm, concluding the

record shows the information allegedly used by defendant was

neither confidential nor disclosed solely to him. Accordingly,

the State failed to produce sufficient evidence before the grand

jury to establish a prima facie case that defendant has

committed the crime charged. State v. Hogan, 144 N.J. 216, 236

(1996).

These facts, principally found in documentary evidence

gathered in an investigation by the Office of the State

Comptroller and presented by the State to an Investigative Grand

Jury, undergird the charges against defendant. Initially,

however, we provide background information necessary to

understand the context of the issue presented.

In 2005, the Township,4 which contained many farms and

undeveloped land, participated in a pilot program known as the

Burlington County Transfer Development Rights Program. This

land management program clustered development in a specified

receiving area surrounded by agricultural and open space. The

agricultural and open space properties sold "transfer

development rights" (TDR), described as "credits," associated

with the land to landowners seeking to develop in the receiving

4 In accordance with Rule 1:38-3(c)(4), we have omitted identifying information.

3 A-4008-14T1 area. The number of TDR credits associated with a parcel was

based on its size and quality for development. For example, a

farmer could sell development rights, thereby preventing the

associated land from future development, preserving it as a

farm. An owner proposing development of land in the receiving

area was required to first amass a specific number of TDR

credits, depending on the size and density of its planned

building project. The Burlington County Transfer Development

Bank Board also owned TDR credits as part of its farmland

preservation efforts, which it would sell through auction to

facilitate development in the participating municipalities.

Overall, the program preserved open space and marshalled

residential and commercial development to designated areas of a

municipality.

Testifying witnesses before the Investigative Grand Jury

included the Chief Operating Officer (the COO) of a real estate

development corporation (the developer), which acquired

undeveloped land in the Township to construct a multiuse housing

and commercial development. The COO discussed the developer's

need to acquire a designated number of TDR credits, prior to

proceeding with construction. Finally, he explained the

developer's interactions with defendant.

4 A-4008-14T1 In early 2005, while defendant was serving as mayor and a

member of the Township Planning Board, the developer contracted

to purchase a large undeveloped parcel in the Township's

receiving area. In March 2005, prior to closing and in the

course of performing due diligence, the developer's COO,

accompanied by its owner, met with Township officials, including

defendant. They discussed plans for the proposed development

and the need for acquisition of the approximately 240 TDR

credits for the project to move forward. The developer also

engaged a real estate broker to develop leads and assist its

efforts in convincing farmers to sell available TDR credits.

The developer closed on the property in May 2005.

The COO next recited the developer's unsuccessful efforts

to acquire TDR credits. The developer had approached "a handful

of large credit owners," expressing a willingness to pay more

per credit for large blocks of TDR credits. In October 2005,

the developer issued a mailing to approximately thirty or forty

entities, which disclosed its TDR credit needs and offered to

pay $55,000 to $60,000 per credit, depending on the terms of the

transaction, which was a price "10 to 20 percent more than

anyone had ever offered . . . ." The developer also "assumed

that in the farming community everyone tends to know each other"

and believed if one farmer was engaged, he or she could convince

5 A-4008-14T1 others to join. The COO testified the response to the

developer's mailing inquiry was "terrible," consisting of two or

three potential sellers, who had few credits and asked nearly

twice the offering price. This lackluster response concerned

the developer, which faced the prospect of being unable to

develop its property.

Defendant, as mayor, periodically inquired regarding the

status of the developer's credit acquisition and, in March 2006,

the COO personally told him of the "dismal" response to its

efforts. Defendant, knowing the developer's difficulty,

approached the COO and suggested he intended to purchase a

roughly 100-acre parcel (the farm), adjacent to his home, and

wanted to sell the developer the associated TDR credits for

$65,000 per credit.

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Bluebook (online)
130 A.3d 590, 444 N.J. Super. 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-jersey-v-ld-njsuperctappdiv-2016.