WASHINGTON COMMONS v. Jersey City

7 A.3d 225, 416 N.J. Super. 555
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 12, 2010
DocketA-0779-09T1
StatusPublished
Cited by28 cases

This text of 7 A.3d 225 (WASHINGTON COMMONS v. Jersey City) 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
WASHINGTON COMMONS v. Jersey City, 7 A.3d 225, 416 N.J. Super. 555 (N.J. Ct. App. 2010).

Opinion

7 A.3d 225 (2010)
416 N.J. Super. 555

WASHINGTON COMMONS, LLC, Plaintiff-Appellant,
v.
CITY OF JERSEY CITY, Mariano Vega, Jr., Jersey City Redevelopment Agency, Members of the Jersey City Redevelopment Agency and Mayor Jerramiah Healy, the City of Jersey City Board of Adjustment, and the City of Jersey City Department of Housing, Economic Development and Commerce, Defendants-Respondents.

No. A-0779-09T1.

Superior Court of New Jersey, Appellate Division.

Submitted October 19, 2010.
Decided November 12, 2010.

*226 Buttafuoco, Arce & Price, LLC, attorneys for appellant (Nicholas R. Buttafuoco, South Plainfield, on the brief).

William C. Matsikoudis, Corporation Counsel, attorney for respondents City of Jersey City, Mayor Jerramiah Healy, Councilman Mariano Vega, Jr., and the City of Jersey City Department of Housing, Economic Development and Commerce (Judith D. O'Donnell, Assistant Corporation Counsel, on the brief).

Vincent J. LaPaglia, Union City, attorney for respondent the City of Jersey City Board of Adjustment.

Before Judges SKILLMAN, PARRILLO and YANNOTTI.

The opinion of the court was delivered by

PARRILLO, J.A.D.

Plaintiff, Washington Commons, LLC, appeals from an August 14, 2009 order of the Law Division enforcing defendant City of Jersey City Board of Adjustment's (Board) November 8, 2007 resolution requiring plaintiff to convey to defendant City of Jersey City (City) fee simple absolute title to seven affordable housing units for $1.00 per unit. For reasons that follow, we reverse.

The background to this matter has been extensively detailed in our earlier opinion affirming the dismissal of plaintiff's first prerogative writs complaint. Wash. Commons, LLC v. City of Jersey City, No. A-6560-06T2, 2009 WL 137330 (App.Div. Jan. 22, 2009), certif. denied, 199 N.J. 515, 973 A.2d 383 (2009). We reiterate and update those facts only as relevant here.

In early 2004, plaintiff sought variances from the Board for the construction of a fourteen story, sixty-eight unit residential building, as well as twenty-year tax abatements for each unit. The original plan contained sixteen fewer units than that which was submitted to the Board. On May 20, 2004, the Board approved plaintiff's variance, conditioned on making seven of the additional sixteen units affordable artist live/work units. Its memorializing resolution provided that the seven units were to be conveyed to "the City or its designated agent, which at this time is the [Jersey City Redevelopment Corporation], for rental to low and/or moderate income certified artists in accordance with such terms and conditions as are negotiated by [plaintiff] and the City ...." (emphasis added).

Thereafter, a dispute arose over the interpretation of the "negotiations" clause in the Board's May 20, 2004 resolution. The City contended plaintiff intended to donate the additional units to the City in order to satisfy a statutory "beneficial use" provision. *227 Plaintiff, on the other hand, maintained that seven of the additional units were to be sold to the City at cost, namely $463,235.29 per unit. As noted, the Board's resolution was silent as to this issue, referring only to the existence of conditions to be negotiated.

On February 17, 2007, plaintiff filed a complaint in lieu of prerogative writs (Washington Commons I) challenging municipal action in refusing to purchase the seven affordable housing units at plaintiff's cost and in declining to issue certificates of occupancy to allow the remaining units to be sold to the general public. The Law Division granted the municipal defendants' motion to dismiss, finding plaintiff's claim time-barred as beyond the forty-five day limitation of Rule 4:69-6(a), having determined the cause of action accrued, at the latest, in October 2006, when "price" negotiations broke down. We affirmed, reasoning:

Viewed in this context, the court reasonably found that the prerogative writs aspect of plaintiff's claim accrued, at the very latest, in October 2006 when the parties reached an irretrievable impasse. And plaintiff having offered no reason to enlarge the 45-day period, the court properly found the prerogative writs counts time-barred.
Plaintiff's complaint in this regard also fails for want of exhaustion of administrative remedies. It bears repeating that plaintiff proceeded in the Law Division on the basis of the City's position in negotiations without any determination by the Board as to whether that position was consistent with the Board's May 20, 2004 resolution. Since the true matter in controversy concerned the interpretation of the resolution's "negotiations clause," we believe it was incumbent upon plaintiff to first make timely and appropriate application to the Board for clarification.
...
Not only did plaintiff fail to exhaust its administrative remedy before seeking judicial relief, it also refused to return to the Board upon the court's recommendation. This blatant bypassing of an obvious administrative remedy prevented any meaningful review of the critical matter at hand—namely the construction of the Board's May 20, 2004 resolution—and left plaintiff only the penultimate issue concerning the City's negotiating position, which the court properly found to be time-barred.
[Wash. Commons, LLC v. City of Jersey City, supra, slip op. at 13-15.]

During the pendency of that appeal, the Board, at its November 8, 2007 meeting, decided its May 20, 2004 resolution required plaintiff to donate the seven affordable housing units to the City and that price was never intended to be a term to be negotiated. Specifically, the Board declared that "`[c]onditions to be negotiated' as stated in the resolution were conditions other than price, since it was understood that the units were to be conveyed to the city or its designated agency for $1." In response, on December 24, 2007, plaintiff filed a second complaint in lieu of prerogative writs (Washington Commons II) challenging the Board's November 8, 2007 "clarification." Pursuant to the municipal defendants' motion to dismiss, by order of April 11, 2008, the Law Division dismissed plaintiff's second complaint as time-barred and precluded by res judicata, finding that because plaintiff did not exhaust its administrative remedies before the Board, and further that the Board's so-called "clarification" had actually been the Board's position all along, nothing had changed in the relationship between the parties since *228 Washington Commons I. In the course of its opinion, the Law Division commented:

[T]here would be little doubt in my mind that the decision of the conveyance for a dollar a piece would in fact be my conclusion. The Planner's report which was the basis of the action of the Board of Adjustment was something they relied upon. It was something that was in my opinion and experience had to have been provided to Mr. Colling, to the architect, to the attorney.
And furthermore I'm satisfied from the additional transcript that I've now seen regarding the testimony of the person from the arts community that everyone that was there expected that the units were to be conveyed for a dollar.

Plaintiff never filed a notice of appeal challenging the Law Division's decision in Washington Commons II.

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Bluebook (online)
7 A.3d 225, 416 N.J. Super. 555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/washington-commons-v-jersey-city-njsuperctappdiv-2010.