Stivala Investments, Inc. v. South Abington Township Board of Supervisors

815 A.2d 1, 2002 Pa. Commw. LEXIS 971
CourtCommonwealth Court of Pennsylvania
DecidedDecember 5, 2002
StatusPublished
Cited by4 cases

This text of 815 A.2d 1 (Stivala Investments, Inc. v. South Abington Township Board of Supervisors) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stivala Investments, Inc. v. South Abington Township Board of Supervisors, 815 A.2d 1, 2002 Pa. Commw. LEXIS 971 (Pa. Ct. App. 2002).

Opinion

OPINION BY

Judge PELLEGRINI.

Stivala Investments, Inc. (Stivala) appeals from a decision of the Court of Common Pleas of Lackawanna County (trial court) dismissing its mandamus action against South Abington Township Board of Supervisors, Giles Stanton, Joseph Sproul, Mark Dougherty and James Mayfield (collectively Township) to compel the Township to accept a road, to issue building permits and to complete the infrastructure for the development of a subdivision.

Dos Mondos, L.T.D. (Dos Mondos) desired to construct a condominium development, i.e. townhouses,1 with exterior care ultimately to be provided by a homeowner’s association, commonly referred to as the Waverly Townhomes Development (Development). On August 13, 1990, the Township gave Dos Mondos subdivision approval to construct 55 townhouses on 13.779 acres which was to be phase one of the Development that ultimately would encompass 77.336 acres. In accordance with subdivision approval, Dos Mondos provided the Township with an irrevocable letter of credit for $493,473 which represented 110% of the cost of completion of the estimated infrastructure improvements. Those improvements were to be completed by January 16, 1991, with the letter of credit expiring on January 30, 1991. A building permit, which appears to have been initially issued in April 1989 before the subdivision plan was approved, was apparently reissued on March 25, 1991, and the six model townhouses were built. Sometime after those townhouses were built, the improvement bond was released [3]*3before all the improvements were completed.

Three years later, by deed dated October 14, 1994, Stivala purchased the entire 13.779-acre property needed for phase one of the Development from Dos Mondos. The deed between Dos Mondos and Stivala specifically provided that in consideration for $625,000, it conveyed or assigned the entire phase one tract of the Development containing 13.7449 acres to Stivala. The deed did not contain a description of individual lots, but rather only provided a metes and bounds description of the property.

In the summer of 1998, Stivala went to the Township to obtain information on the issuance of a building permit to commence construction on the additional townhouses. While at the Township offices, Stivala was informed that the Development was abandoned and it would have to resubmit the plans for Development approval. It was also, presumably, informed that it was responsible for the completion of the infrastructure improvements that Dos Mondos did not complete.

On July 13, 2001, Stivala filed a complaint in mandamus2 against the Township alleging that because it failed to make Dos Mondos complete the Development’s infrastructure, failed to revoke the approval of the permits of occupancy, failed to secure the financial guarantee, and allowed the subdivision map to be recorded, the Township had induced Stivala to purchase property it believed had a complete infrastructure. It contends that by failing to make Dos Mondos complete the infrastructure, under Section 509 of the Pennsylvania Municipalities Planning Code (MPC),3 53 P.S. § 10509,4 the Town[4]*4ship now has a mandatory non-discretionary duty to complete the infrastructure.

The Township filed preliminary objections to the complaint contending it should be dismissed because the Township did not have a mandatory duty to construct the improvements because Stivala stood in the shoes of Dos Mondos as the developer of the property and was, therefore, responsible for completion of the improvements. Agreeing with the Township, the trial court sustained the preliminary objections and dismissed the complaint, finding that under the MPC, Stivala was the successor to Dos Mondos as developer of the property, and the Township did not have to complete the infrastructure or to accept the roads shown on the recorded subdivision plan as “dedicated.” Stivala’s mandamus complaint was dismissed and it now appeals.5

On appeal, Stivala continues to contend that by allowing the security for the infrastructure improvements to lapse before those improvements were made, the Township now has a mandatory, non-discretionary duty under Section 509 of the MPC to complete the infrastructure for the Development at its own expense. If Dos Mondos had remained the owner of the land, it would still be responsible for the improvements, even though the Township released the letter of credit. See Section 511 of the MPC, 53 P.S. § 10511, footnote 9, infra. In effect, what Stivala is arguing is that it is not the developer, which, under Section 509 of the MPC, is the one who is responsible for infrastructure improvements, because it is not the successor in interest to Dos Mondos merely because it purchased the property from it.

A municipality may assess abutting property owners to a street for the cost of the original permanent paving of a street because it is a local improvement, but it may not assess the abutting owners for a subsequent paving. City of Philadelphia v. O’Brien, 176 Pa.Super. 235, 107 A.2d 587 (1954). However, rather than having the municipality assess each abutting property owner for the cost of the original paving, Section 503 of the MPC authorizes local municipalities to issue [5]*5regulations governing the standards by which streets “shall be designed, graded and improved, and walkways, curbs, gutters, street lights, fire hydrants, ... and other improvements.” 53 P.S. § 10503. While it is the abutting property owner’s responsibility to pay for the first paving, a municipality may condition approval of a subdivision on the requirement that the subdivider or developer improve the street in accordance with its subdivision ordinance. Section 509 of the MPC requires that:

No plat shall be finally approved unless the streets shown on such plat have been improved to a mud-free or otherwise permanently passable condition, or improved as may be required by the subdivision and land development ordinance and any walkways, curbs, gutters, street lights, fire hydrants, shade trees, water mains, sanitary sewers, storm sewers and other improvements as may be required by the subdivision and land development ordinances have been installed in accordance with such ordinance.6

53 P.S. § 10509.

While Section 509 of the MPC does establish a duty upon municipalities to require completion of improvements or secure guarantee thereof as a prerequisite to final approval of a subdivision plot, it must be observed that this code is merely enabling legislation and there must be an implementing ordinance. See 53 P.S. § 10101, Historical Note. When a municipality approves a subdivision plan without requiring completion of streets according to its subdivision ordinance or fails to obtain financial security for completion of the streets in conformity with its subdivision ordinance, as in Safford v. Board of Commissioners, Annville Township, 35 Pa.Cmwlth. 631, 387 A.2d 177 (1978), we have held that in certain instances, the municipality is obligated to complete the streets according to its ordinance at its own expense.

In Safford, 11 married couples purchased lots in a subdivision.

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815 A.2d 1, 2002 Pa. Commw. LEXIS 971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stivala-investments-inc-v-south-abington-township-board-of-supervisors-pacommwct-2002.