DR. AURORA BAIRAN VS. BOROUGH OF CLOSTER ZONING BOARD OF ADJUSTMENT(L-4268-14, BERGEN COUNTY AND STATEWIDE) ( 2017 )


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    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-3114-14T3
    DR. AURORA BAIRAN,
    Plaintiff-Respondent,
    v.
    BOROUGH OF CLOSTER ZONING
    BOARD OF ADJUSTMENT,
    Defendant-Appellant.
    _____________________________________________
    Argued October 26, 2016 – Decided November 21, 2017
    Before Judges Fuentes, Simonelli and Gooden
    Brown.
    On appeal from the Superior Court of New
    Jersey, Law Division, Bergen County, Docket
    No. L-4268-14.
    Michael B. Kates argued the cause for
    appellant (Kates Nussman Rapone Ellis & Farhi,
    LLP, attorneys; Mr. Kates, of counsel and on
    the brief).
    Andrew S. Kohut argued the cause for
    respondent (Wells, Jaworski & Liebman, LLP,
    attorneys; Mr. Kohut, on the brief).
    The opinion of the court was delivered by
    GOODEN BROWN, J.A.D.
    Defendant    Borough    of   Closter      Zoning    Board    of    Adjustment
    (Board) appeals from a February 26, 2015 Law Division order, which
    reversed the Board's denial of plaintiff Aurora Bairan's use
    variance application for her property located on Harrington Avenue
    in Closter.      After reviewing the record and applicable legal
    principles, we reverse.
    I.
    We glean the following facts from the record.                  The property
    is a long, narrow lot, measuring forty feet in width and 224 feet
    in depth.    It contains three separate buildings located one behind
    the other, designated as Building A, B, and C.               Building A fronts
    along    Harrington   Avenue   and   has      two   second-floor       residential
    units,   a   first-floor    commercial       storefront    tenant      facing   the
    street, and, in the rear, a first-floor 368 square foot residential
    unit which is the subject of this appeal.               Building B is set back
    approximately three to four feet behind Building A and has two
    residential units.      Building C is a single-family dwelling located
    in the rear of the property.         In total, there are six residential
    units and one commercial space on the property.                 Between Building
    B and C is a paved area, which is used as a parking area for the
    tenants.
    Plaintiff    has    owned    the       property    since    1985    and    has
    continuously used it in the same manner in which it had been used
    2                                  A-3114-14T3
    well before her ownership.           On October 26, 2011, following an
    investigation into various zoning deficiencies, the Borough's
    Zoning Officer denied plaintiff's continued use of the property
    in the same manner it had been used, and directed plaintiff to
    file an application with the Board for relief.                    Pursuant to
    N.J.S.A. 40:55D-70(a), plaintiff appealed the Zoning Officer's
    decision to the Board and sought either confirmation that the
    existing uses of multiple structures on one lot were legally
    existing, nonconforming structures and uses pursuant to N.J.S.A.
    40:55D-68, or, in the alternative, use and bulk variances pursuant
    to    N.J.S.A.    40:55D-70(d),   sanctioning     the    existing    uses      and
    structures as they had existed since at least 1985 when plaintiff
    acquired the property.
    On December 18, 2013, the Board voted to sanction the three
    buildings and five of the six residential units on the ground that
    they predated the Borough's 1940 zoning ordinance, and their
    nonconforming      status   was   therefore   protected     under        N.J.S.A.
    40:55D-68.       The Board noted that the property is located in the
    Borough's District No. 3 "Business Area[,]" which permits "one-
    and    two-family"     residential    dwellings    "as     well     as     retail
    commercial uses."       Although District No. 3 "clearly permits and
    anticipates mixed commercial/residential buildings[,]" no "more
    than two" residential units are permitted "in one building, with
    3                                   A-3114-14T3
    or without a commercial use as well."            Therefore, the Board
    concluded that while "[t]he one[-]family use" in Building C and
    "[t]he two-family use" in Building B were "permitted[,]" Building
    A was "non-conforming based on the presence of three [residential]
    dwellings[,]" which is prohibited in that zone.          Accordingly, as
    to the 368 square foot first-floor residential unit in Building
    A, the Board unanimously upheld the Zoning Officer and denied the
    unit   historical   recognition   because    plaintiff   was   unable    to
    provide evidence of its pre-zoning existence.
    The following month, plaintiff requested a use variance under
    N.J.S.A. 40:55D-70(d)(1) to allow her to continue to use the unit
    as the third residential unit in Building A and sixth residential
    unit on the property.       Plaintiff also sought a parking space
    variance, allowing her to provide only seven parking spaces where
    sixteen were required, and approval of an amended site plan for
    improvements recommended by the Board.
    At the January 15, 2014 hearing on the use variance, plaintiff
    testified in support of her application along with two expert
    witnesses, Michael Hubschman and Steve Lydon.             There were no
    objectors at the hearing.      Plaintiff testified that during her
    ownership of the property, the residential unit had been regularly
    occupied without any complaints regarding nuisances, parking, or
    ingress and egress of the property.         Further, plaintiff received
    4                              A-3114-14T3
    no inquiries about using the unit for commercial purposes and did
    not believe the unit was a suitable space for commercial use given
    its location.
    Hubschman, a licensed civil engineer, opined that due to the
    narrow passageway for vehicles to access the building, the unit
    is better suited for residential purposes to avoid the additional
    traffic attendant to commercial use.                Hubschman acknowledged,
    however, that there was a municipal parking lot approximately 100
    feet from the property and street parking available.                In addition,
    after describing how the unit is separated from the rest of
    Building A, Hubschman explained that combining the unit with the
    existing commercial space was illogical because it could not be
    done   without     removing   and   relocating      the   existing       stairwell
    leading to the second floor, or remodeling the existing foyer.                    He
    admitted, however, that it was possible to have "two side-by-side
    stores[.]"      Much of Hubschman's rationale supporting the continued
    residential use of the unit was predicated on the fact that the
    unit had functioned in that capacity for over thirty years.
    Lydon,   plaintiff's   second       expert   witness   and    a    licensed
    professional planner, opined that the residential use of the unit
    was "a better fit[,]" and promoted Smart Growth principles by
    providing affordable housing and opportunities to live near the
    Borough's downtown and public transportation.             According to Lydon,
    5                                   A-3114-14T3
    the "master plan" and the "land use plan" were reexamined in 2008,
    "and the reexamination report recommend[ed] allowing residential
    apartments over ground floor retail as an inducement to improve
    and retenant ground floor retail spaces."         Lydon acknowledged that
    the current application does not "squarely meet the recommendation
    of the master plan because it is a first floor residential space
    . . . , not a second floor[.]"           However, he believed that "the
    overall intent of having mixed uses in downtown is furthered by
    this application[,]" even if "not exactly as laid out by the
    [B]orough."
    Lydon disagreed with the Board Chairman that the "quality of
    life" issues associated with a "first floor" apartment "on [M]ain
    [S]treet[,]"   including    engine       fumes,   "traffic   going    by[,]"
    "noise," "security concerns," and the elevated "density factor,"
    were legitimate concerns.    Lydon explained that although Building
    A is "the only building that's readily visible from the street[,]"
    the unit's location in the rear of Building A gives it no presence
    along Harrington Avenue.     According to Lydon, while the lack of
    street presence is not suitable for commercial purposes, it is
    ideal for residential use.
    Lydon also testified that given the unit's proximity to the
    five other residential units, using the unit as a residential
    space was compatible with all of the other uses in the rear of the
    6                               A-3114-14T3
    property.      Lydon went on to say that converting the unit to
    commercial space would most likely exacerbate internal traffic and
    safety concerns, whereas the residential use limited the amount
    of traffic generated.          Lydon also agreed with Hubschman that,
    "from    a   site   layout   perspective[,]"    the    unit   could   not    be
    reasonably adapted into a "commercial space[,]" and, given the
    glut of commercial space available in the Borough, transforming
    the unit into commercial space, with its significant physical
    constraints, would not benefit the Borough.            Lydon pointed to the
    property's "very high occupancy rate" to "demonstrate[] a need for
    this type of use, a small apartment, in this particular location."
    Lydon     opined   that    overcoming     the    physical   limitations
    inherent in the building to convert the space to commercial use
    would cause "undue hardship, which is a basis under the Municipal
    Land Use Law for the granting of a use [variance] application[.]"
    Lydon concluded that allowing another residential unit would have
    little to no impact on the neighborhood given its compatibility
    with the surrounding area, particularly since residential uses are
    already permitted in the zone, the property was developed long
    before the adoption of the Borough's Zoning Ordinance or Master
    Plan, and residential use "work[ed] well" for the last thirty
    years.
    7                                A-3114-14T3
    Following the hearing, the use variance failed to achieve the
    super-majority of five votes mandated by N.J.S.A. 40:55D-70(d).
    The vote was four in favor of granting the use variance and three
    against.     Because the use variance was denied, the Board did not
    vote on the parking space variance or the amended site plan.                      The
    memorializing resolution, adopted on April 16, 2014, identified
    the exhibits, summarized some of the testimony, and recited the
    applicable     law.    The    resolution       acknowledged       that   plaintiff
    proffered proofs through Lydon's testimony that her "application
    advances   the    promotion    of   the      general      welfare   by   providing
    sufficient space in appropriate locations for a variety of uses,
    including residential and commercial[.]"                 However, the resolution
    indicated the Board could not "conclude[] that [plaintiff] would
    face   'undue    hardship'"    if   it       "disallowed"     the   ground     floor
    residential unit in Building A.          On the contrary, because Building
    A had "none of the[] deficiencies" present in Buildings B and C
    that   would    preclude   commercial        use,   it    could   "accommodate       a
    conforming commercial use[,]" and "it is on this basis that three
    Board members opposed a ground floor residential use" in Building
    A.
    On May 6, 2014, plaintiff filed a complaint in lieu of
    prerogative writs in the Law Division challenging the Board's
    denial.    The trial court conducted a bench trial on the record
    8                                   A-3114-14T3
    below on December 8, 2014.    On February 10, 2015, the court issued
    a written decision reversing the Board's denial of the use variance
    and entering judgment in favor of plaintiff.    The court concluded
    that "the Board ha[d] not based its conclusions in the Resolution
    on evidence in the record."    The court explained:
    In the instant matter, the court finds
    the Planning Board acted in an arbitrary,
    capricious and unreasonable manner regarding
    the [a]pplication. Further, plaintiff has met
    her   burden    under   N.J.S.A.   40:55D-70.
    Plaintiff has demonstrated that she would
    suffer an undue hardship if she is compelled
    to make the unit suitable for commercial use.
    Also, the site is particularly suitable for
    residential use. The unit is not visible from
    the   street[,]   and  residential   use   is
    compatible with other uses in the rear of the
    [p]roperty.
    Additionally, plaintiff has proven that
    residential use of the unit does not create a
    substantial detriment to the public good, and
    the intent and purpose of the zone plan and
    zoning ordinance will not be substantially
    impaired.   There are no objecting neighbors
    or community members, and residential use is
    consistent with surrounding property use.
    Further, defendant has not presented any
    compelling evidence as to why a variance
    should not be granted in this instance. The
    unit has been utilized as an apartment for
    over thirty years, and it has not interfered
    with the nature or intent of the zoning
    ordinance or plan.     No evidence has been
    presented by defendant proving a deleterious
    effect on the community.      Furthermore, no
    evidence has been presented to support the
    findings made in the resolution. The decision
    of the Board must be based on evidence before
    it. Such was not done here.
    9                          A-3114-14T3
    The court entered a memorializing order on February 26, 2015, and
    this appeal followed.
    II.
    On appeal, the Board raises the following points1 for our
    consideration:
    POINT I
    DUE DEFERENCE WAS NOT PAID TO THE BOARD.
    POINT II
    ON THE SINGULAR VOTE IN ISSUE, PLAINTIFF DID
    NOT MEET THE STATUTORY CRITERIA UNDER N.J.S.A.
    40:55D-70(d)(1).
    POINT III
    THE TESTIMONY OF PLAINTIFF'S EXPERT WITNESSES
    CONCERNING THE PROHIBITIVE COST OF CONVERTING
    FROM RESIDENTIAL TO COMMERCIAL USE WERE[] "NET
    OPINIONS" AND THUS COULD BE IGNORED.
    We begin with the standard of review.                   We apply the same
    limited standard of review as the trial court when reviewing a
    zoning board's decision to grant or deny a variance.                 Bressman v.
    Gash,    
    131 N.J. 517
    ,   529   (1993);      D.   Lobi   Enters.,   Inc.    v.
    Planning/Zoning Bd. of Borough of Sea Bright, 
    408 N.J. Super. 345
    ,
    360 (App. Div. 2009).           As such, "when a party challenges a zoning
    board's decision through an action in lieu of prerogative writs,
    1
    We have condensed the points raised by defendant for clarity.
    10                                 A-3114-14T3
    the zoning board's decision is entitled to deference."                         Kane
    Props., LLC v. City of Hoboken, 
    214 N.J. 199
    , 229 (2013).                      "Its
    factual determinations are presumed to be valid[,] and its decision
    to grant or deny relief is only overturned if it is arbitrary,
    capricious or unreasonable."     
    Ibid.
          (citing Burbridge v. Twp. of
    Mine Hill, 
    117 N.J. 376
    , 385 (1990)).
    A "board's decisions enjoy a presumption of validity, and a
    court may not substitute its judgment for that of the board unless
    there has been a clear abuse of discretion."               Price v. Himeji,
    LLC, 
    214 N.J. 263
    , 284 (2013) (citing Cell S. of N.J., Inc. v.
    Zoning Bd. of Adjustment, 
    172 N.J. 75
    , 81 (2002)).                      "[Z]oning
    boards,     'because   of    their     peculiar       knowledge     of      local
    conditions[,] must be allowed wide latitude in the exercise of
    delegated    discretion.'"      
    Ibid.
          (quoting     Kramer     v.    Bd.     of
    Adjustment, 
    45 N.J. 268
    , 296 (1965)).            To that end, we extend even
    greater deference to a zoning board's decision to deny a variance
    in preservation of a zoning plan than to a decision to grant a
    variance.    Nextel of N.Y., Inc. v. Borough of Englewood Cliffs Bd.
    of Adjustment, 
    361 N.J. Super. 22
    , 38 (App. Div. 2003).                  However,
    where the issue on appeal involves a purely legal question, this
    court affords no special deference to the trial court's or zoning
    board's   decision,    and   instead      must    determine   if    the     board
    11                                   A-3114-14T3
    understood and applied the law correctly.      See D. Lobi Enters.,
    supra, 
    408 N.J. Super. at 351-52
    .
    Under N.J.S.A. 40:55D-70(d)(1):
    The board of adjustment shall have the power
    to:
    . . . .
    In particular cases for special reasons, grant
    a variance to allow departure from . . . this
    act to permit: (1) a use or principal
    structure in a district restricted against
    such use or principal structure . . . .      A
    variance under this subsection shall be
    granted only by affirmative vote of at least
    five members, in the case of a municipal
    board[.]
    Where a zoning board has denied a variance, the applicant must
    prove that the evidence before the board was "overwhelmingly in
    favor of the applicant."     Nextel, 
    supra,
     
    361 N.J. Super. at 38
    (quoting Ne. Towers, Inc. v. Zoning Bd. of Adjustment, 
    327 N.J. Super. 476
    , 494 (App. Div. 2000)).    "As is evident, the burden on
    a variance applicant is not insignificant[,]" Nuckel v. Borough
    of Little Ferry Planning Bd., 
    208 N.J. 95
    , 102 (2011), "because
    the grant of a use variance always represents an exception to the
    generally applicable zoning scheme[.]"    Price, supra, 214 N.J. at
    286.
    An applicant seeking a use variance must demonstrate "special
    reasons" — commonly referred to as the positive criteria — why the
    12                          A-3114-14T3
    variance should be granted.         N.J.S.A. 40:55D-70(d)(1). "Special
    reasons" are those that promote the general purposes of zoning,
    enumerated in N.J.S.A. 40:55D-2.             Burbridge, 
    supra,
     
    117 N.J. at
    386 (citing Kohl v. Mayor of Fair Lawn, 
    50 N.J. 268
    , 276 (1967)).
    "Special reasons" generally fall into one of three categories:
    (1) [W]here the proposed use inherently serves
    the public good, such as a school, hospital
    or public housing facility, see [Sica v. Bd.
    of Adjustment of Wall, 
    127 N.J. 152
    , 159-60
    (1992)]; (2) where the property owner would
    suffer "undue hardship" if compelled to use
    the property in conformity with the permitted
    uses in the zone, see Medici v. BPR Co., 
    107 N.J. 1
    , 17 n.9 (1987); and (3) where the use
    would serve the general welfare because "the
    proposed site is particularly suitable for the
    proposed use." [Smart SMR of N.Y., Inc. v.
    Borough of Fair Lawn Bd. of Adjustment, 
    152 N.J. 309
    , 323 (1998).]
    [Saddle Brook Realty, LLC v. Twp. of Saddle
    Brook Zoning Bd. of Adjustment, 
    388 N.J. Super. 67
    , 76 (App. Div. 2006).]
    An applicant for a use variance must also satisfy what are
    known as the "negative criteria."           Specifically, an applicant must
    show   that    the   variance   "can    be    granted   without   substantial
    detriment to the public good," and that "the variance 'will not
    substantially impair the intent and the purpose of the zone plan
    and zoning ordinance.'"         Price, supra, 214 N.J. at 286 (quoting
    N.J.S.A. 40:55D-70).      "The showing required to satisfy the first
    of the negative criteria focuses on the effect that granting the
    13                             A-3114-14T3
    variance would have on the surrounding properties."       Ibid. (citing
    Medici, 
    supra,
     
    107 N.J. at
    22 n.12).       "The proof required for the
    second of the negative criteria must reconcile the grant of the
    variance for the specific project at the designated site with the
    municipality's contrary determination about the permitted uses as
    expressed through its zoning ordinance."        
    Ibid.
     (citing Medici,
    
    supra,
     
    107 N.J. at 21
    ).     This requires, "in addition to proof of
    special reasons, an enhanced quality of proof and clear and
    specific findings by the board of adjustment that the variance
    sought is not inconsistent with the intent and purpose of the
    master plan and zoning ordinance."     Medici, 
    supra,
     
    107 N.J. at 21
    .
    A zoning board "acts as a quasi-judicial body.        As such, it
    is called upon to become involved in a weighing process, much like
    a court, before determining whether the positive and/or negative
    criteria have been met."     Price Co. v. Zoning Bd. of Adjustment
    of Twp. of Union, 
    279 N.J. Super. 207
    , 209 (App. Div. 1994).
    Here, defendant argues the court erred in concluding that the
    Board's "denial was arbitrary, capricious or unreasonable" and
    "unsupported in the record." We agree. The minority Board members
    opposed the variance because plaintiff failed to satisfy the
    affirmative    criteria,   specifically,    undue   hardship   and   site
    suitability.    The Board members rejected plaintiff's assertion
    that overcoming the physical limitations inherent in the building
    14                             A-3114-14T3
    by relocating the stairwell or remodeling the foyer would cause
    undue hardship.    That determination was supported by Hubschman's
    acknowledgement that it was possible to have "two side-by-side
    stores[.]"      Proof of undue hardship requires proof "that the
    property is not reasonably adapted to a conforming use[.]" Medici,
    
    supra,
     
    107 N.J. at
    17 n.9.   Plaintiff failed to make the requisite
    showing here.
    Likewise, the Board members concluded that Building A was
    particularly well-fitted for an additional commercial, rather than
    residential, unit because it had none of the "deficiencies" present
    in Buildings B and C.   According to Lydon, the fact that Buildings
    B and C were not visible from the street and had limited parking
    and vehicular access made those buildings particularly unsuitable
    for non-residential uses.    In contrast, Building A had none of
    those deficiencies, making it suitable for non-residential use.
    While "almost all lawful uses of property can be said to promote
    the general welfare to some degree, . . . any application for a
    use variance based on the particularly suitable standard has always
    called for an analysis that is inherently site-specific."    Price,
    
    supra,
     214 N.J. at 288.
    Although the availability of alternative
    locations is relevant to the analysis,
    demonstrating that a property is particularly
    suitable for a use does not require proof that
    there is no other potential location for the
    15                          A-3114-14T3
    use[,] nor does it demand evidence that the
    project "must" be built in a particular
    location.    Rather, it is an inquiry into
    whether the property is particularly suited
    for the proposed purpose, in the sense that
    it is especially well-suited for the use, in
    spite of the fact that the use is not permitted
    in the zone.
    [Id.    at 292-93.]
    Here, plaintiff's proofs fell short of meeting that test, and the
    record supports the Board's rationale.
    In short, plaintiff failed to show the necessary positive
    criteria   and    failed   to   overcome   the   presumption   of   validity
    afforded the Board's decision.         We find adequate support in the
    record for the Board's conclusions and no support for the court's
    determination that the Board's decision was arbitrary, capricious,
    or unreasonable.     Accordingly, we reverse the Law Division order
    and reinstate the Board's resolution denying the use variance.              In
    light of our conclusion, we need not reach the Board's remaining
    contentions that the court erroneously shifted the burden of proof
    to defendant and that the Board was not required to accept the net
    opinions offered by plaintiff's experts.
    Reversed.
    16                              A-3114-14T3