Trump On Ocean, LLC v. Cortes-Vasquez

76 A.D.2d 1080, 908 N.Y.S.2d 694

This text of 76 A.D.2d 1080 (Trump On Ocean, LLC v. Cortes-Vasquez) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trump On Ocean, LLC v. Cortes-Vasquez, 76 A.D.2d 1080, 908 N.Y.S.2d 694 (N.Y. Ct. App. 2010).

Opinion

In a hybrid proceeding pursuant to CPLR article 78 to review a determination of the Southern Region, Hudson Valley Board of Review, dated April 30, 2008, which, after a hearing, denied the application of the petitioner/plaintiff for a variance and action, inter alia, for specific performance of a lease, the respondents/defendants appeal, as limited by their brief, from so much of a judgment of the Supreme Court, Nassau County (Warshawsky, J.), dated December 1, 2008, as, upon a decision of the same court dated October 21, 2008, granted that branch of the petition which was to annul the determination on the ground that it was arbitrary and capricious.

Ordered that the judgment is modified, on the law and the facts, by adding a provision thereto remitting the matter to the Southern Region, Hudson Valley Board of Review, to grant the requested variance, subject to any reasonable condition it deems appropriate; as so modified, the judgment is affirmed insofar as appealed from, without costs or disbursements, and the matter is remitted to that entity for further proceedings.

In 2004, the New York State Office of Parks, Recreation and [1081]*1081Historic Preservation (hereinafter OPRHP) solicited bids from private developers to undertake, and bear the expense of, the design and construction of “a signature year-round public dining and catering facility” to replace the former Boardwalk Restaurant in Jones Beach State Park. OPRHP ultimately selected a developer who later formed the petitioner/plaintiff, Trump on the Ocean, LLC (hereinafter the petitioner), to develop the state-owned site. Due to strict limitations imposed by OPRHP on the footprint and height of the building, the petitioner designed the facility with a basement that would be used for, among other things, kitchens, employee lounge areas, and utility equipment.

The petitioner and the State of New York, through OPRHR subsequently entered into a 40-year lease, according to which the petitioner was authorized to construct and operate the facility. Pursuant to the lease, the petitioner is responsible for all necessary maintenance and repairs, ordinary and extraordinary, and must obtain flood insurance for the facility, at no cost to the public.

The lease further specified that the project design was required to comply with the New York State Uniform Fire Prevention and Building Code (hereinafter the Uniform Code) and that the petitioner was responsible for obtaining any necessary approvals. In this regard, the project site is located in an area designated by the Federal Emergency Management Administration as a coastal high hazard area, in that it is subject to high-velocity wave action. Consequently, the project is subject to sections 1612.4 and 1612.5 of the Building Code of New York State (hereinafter the Building Code), a component of the Uniform Code (see 19 NYCRR 1219.1, 1221.1). (19 NYCRR 1221.1 was amended effective January 1, 2008. It is undisputed that, because the permitting process for the subject facility was commenced prior to that date, the former version of that regulation, which references the 2002 edition of the Building Code, is applicable here.) Those sections of the Building Code require that buildings constructed in flood hazard zones be designed in accordance with standards set forth in a manual, known as ASCE 24-98, published by the American Society of Civil Engineers, and that the buildings be certified as such.

As relevant to the determination under review, ASCE 24-98 essentially requires that the lowest horizontal structural member of the lowest floor of the structure be built above the elevation to which there is a 1% annual chance that flood waters might rise, or in other words, that it be built to, or above, the “design flood elevation” (hereinafter DFE). While ASCE 24-98 [1082]*1082allows enclosed areas to be constructed below the DFE, those areas may only be used for parking, building access, and storage; they must be constructed with breakaway walls; and they cannot contain certain utility equipment. The proposed facility is also subject to Building Code § 1003.3, which requires “egress doors” to be side-hinged swinging doors (except under certain conditions inapplicable here). Accordingly, in order to construct the proposed occupied basement, which was similar to the occupied basement used in the former Boardwalk Restaurant (to which the ASCE 24-98 standards did not apply), OPRHP applied on behalf of the petitioner to the Southern Region, Hudson Valley Board of Review (hereinafter the Board), for a variance from sections 1612.4, 1612.5 and 1003.3 of the Building Code.

At the hearing on the variance application, the petitioner submitted evidence with regard to its proposed alternative to strict compliance with the above-referenced provisions. There was no opposing evidence offered. The petitioner established that through the use of “dry floodproofing”—a “floodproofing method” used to create a waterproof “structure envelope”—the facility would be designed (and certified as such) to prevent water infiltration and to “resist flotation, collapse and lateral movement” due to the effects of flood and high-velocity wave action. Further, four loading docks leading to the basement, which are located below the DFE, are designed to protect the loading entrances from any rise in groundwater, and are built to an elevation that is higher than the maximum tide surges occurring during “normal storm conditions,” as recorded by the National Oceanic and Atmospheric Administration (hereinafter NOAA). The loading docks will further be equipped with specialized flood doors, which will serve to seal the loading docks in the event of significant storms that may cause floods exceeding this elevation. In this regard, the facility will be in constant communication with the Nassau County Office of Emergency Management (hereinafter OEM), which has detailed plans to implement evacuation orders 36 hours before the arrival of storms of a magnitude that would require use of the flood doors. Electrical power and gas services also would be shut down during such an event.

After hearing the evidence, the Board denied the variance application, concluding that the petitioner had failed to make the “threshold” showing that granting the requested variance would not “substantially adversely affect [the Building Code’s] provisions for health, safety, and security” (19 NYCRR 1205.4 [a]), and, in any event, that the petitioner had also failed to demonstrate its entitlement to the variance under 19 NYCRR [1083]*10831205.4 (b) (3) and (5), as asserted in its application. The petitioner then commenced the present hybrid CPLR article 78 proceeding and action, seeking, as relevant here, to annul the Board’s determination on the ground that it was arbitrary and capricious. The Supreme Court, generally concluding that the Board’s reasoning was based upon misapprehensions of fact and was contradicted by the evidence, granted that branch of the petition and annulled the determination.

“While judicial review [of administrative decisions] must be meaningful, the courts may not substitute their judgment for that of the agency for it is not their role to weigh the desirability of any action or [to] choose among alternatives” (Matter of Riverkeeper, Inc. v Planning Bd. of Town of Southeast, 9 NY3d 219, 232 [2007] [internal quotation marks omitted]). Rather, an agency determination “should be annulled only if it is arbitrary, capricious or unsupported by the evidence” (id. at 232). A determination is arbitrary if it is made “without sound basis in reason and . . . without regard to the facts” (Matter of Pell v Board of Educ.

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Bluebook (online)
76 A.D.2d 1080, 908 N.Y.S.2d 694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trump-on-ocean-llc-v-cortes-vasquez-nyappdiv-2010.