S/K OLD YORK ROAD ASSOCIATES, LP VS. THE TOWNSHIP OF BRANCHBURG S/K OLD YORK ROAD ASSOCIATES, LP VS. THE PLANNING BOARD OF THE TOWNSHIP OF BRANCHBURG (L-0657-17 AND L-0972-17, SOMERSET COUNTY AND STATEWIDE) ( 2019 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
    internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-3741-17T3
    S/K OLD YORK ROAD
    ASSOCIATES, LP,
    Plaintiff-Appellant,
    v.
    THE TOWNSHIP OF BRANCHBURG,
    THE TOWNSHIP COMMITTEE OF
    THE TOWNSHIP OF BRANCHBURG,
    and THE PLANNING BOARD OF
    THE TOWNSHIP OF BRANCHBURG,
    Defendants-Respondents.
    __________________________________
    S/K OLD YORK ROAD
    ASSOCIATES, LP,
    Plaintiff-Appellant,
    v.
    THE PLANNING BOARD OF THE
    TOWNSHIP OF BRANCHBURG
    and CONIFER, LLC,
    Defendants-Respondents.
    __________________________________
    Argued October 21, 2019 – Decided December 24, 2019
    Before Judges Sumners and Geiger.
    On appeal from the Superior Court of New Jersey, Law
    Division, Somerset County, Docket Nos. L-0657-17
    and L-0972-17.
    Derek W. Orth argued the cause for appellant
    (Inglesino, Webster, Wyciskala & Taylor, LLC,
    attorneys; Derek W. Orth, on the briefs).
    William P. Robertson argued the cause for respondents
    Township of Branchburg and Township Committee of
    the Township of Branchburg (DiFrancesco, Bateman,
    Kunzman, Davis, Lehrer & Flaum, PC, attorneys;
    William P. Robertson, on the brief).
    Mark S. Anderson argued the cause for respondent The
    Planning Board of the Township of Branchburg
    (Woolson Anderson, PC, attorneys; Mark S. Anderson
    and Christine Salimbene, on the brief).
    Stacy L. Moore, Jr., argued the cause for respondent
    Conifer, LLC (Parker McCay, PA, attorneys; Harris
    Neal Feldman, of counsel; Stacy L. Moore, Jr., on the
    brief).
    PER CURIAM
    In this consolidated action in lieu of prerogative writs, plaintiff S/K Old
    York Road Associates, L.P. (Old York), appeals from a March 13, 2018 order
    dismissing its complaints challenging:     (1) a zoning ordinance amendment
    changing the zoning of the subject 9.5-acre parcel (the property) from O-Office
    A-3741-17T3
    2
    to   AH-2   Affordable    Housing—non-age-restricted,      multi-family,     100%
    affordable rental apartment housing and accessory uses—that was adopted to
    comply with Branchburg Township's Third Round affordable housing mandate
    under the Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1 to -163; and
    (2) preliminary site plan approval granted with waivers by the Branchburg
    Township Planning Board (the Board) to defendant developer Conifer, LLC, to
    construct a 100-unit affordable residential rental housing project on the Property
    bordering property owned by Old York. We affirm the dismissal of Old York's
    complaints substantially for the reasons stated by Judge Thomas C. Miller in his
    comprehensive ninety-four-page statement of reasons.
    I.
    The Property is located along Route 202 in the Township of Branchburg
    (the Township). It is owned by the Township and comprised of approximately
    9.5 acres spanning three parcels designated as Block 74, Lots 3, 3.01, and 3.02
    on the Township’s official tax map. The Property is locally known as the
    "Triangle Site" for its shape. "It is bounded on the northwest by Old York Road,
    on the northeast by the Whiton Hills development, and on the southeast by U.S.
    Route 202. The Property is bisected by wetlands that significantly impair the
    A-3741-17T3
    3
    development of the site. It is currently undeveloped and populated with mature
    woodlands."
    Old York owns adjacent property designated as Block 74, Lot 1; it consists
    of approximately twenty-four acres developed with a residential apartment
    complex known as Whiton Hills. Defendant Conifer is a real estate development
    company.
    In July 2010, the Board "adopted the Revised Third Round Housing
    Element and Fair Share Plan in accordance with the MLUL to address the
    Township's third round affordable housing obligations" and             to remain
    compliant with the Fair Housing Act of 1985, N.J.S.A. 52:27D-301 to -329. The
    documents detailed the Township's affordable housing history and plan to
    address the Township's third round affordable housing obligations. The plan
    specified the Township was actively attempting to acquire the Triangle Site in
    order to contract with an affordable housing provider to construct 120 affordable
    rental units in furtherance of satisfying the Township's rental obligation.
    "In December 2011[,] the Township adopted the Land Use Plan Element
    of the Branchburg Master Plan pursuant to N.J.S.A. 40:55D-28(b)(2)." The
    Land Use Plan Element provides, as part of its stated goals and objectives:
    Goal 4: To address Branchburg Township's affordable
    housing obligations.
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    4
    Objective 4a:   To provide for a variety of housing
    types compatible with the size and scale of the
    surrounding area serving a broad range of needs of
    Branchburg residents of all ages and income levels.
    Objective 4b:      To address the affordable housing
    obligation with the minimum amount of new residential
    construction.
    The Land Use Element also stated goals such as the "preservation of the rural
    character of [the Township's] undeveloped areas (Goal 2), [provision of]
    compatible infill development (Goal 3), and protection of the Township's
    important natural resources (Goal 7)."
    In October 2014, the Board adopted the 2014 Reexamination Report of
    the Master Plan pursuant to N.J.S.A. 40:55D-89. The report documented the
    changes in policies, assumptions, and objectives underlying the Master Plan
    since the previous reexamination report. It specified affordable housing as an
    area of concern. It recommended amending any land use regulations and zoning
    designations that inhibited the potential for affordable housing.
    The preliminary site plan approval application sought waivers of fifty-
    nine check list requirements, deferring nine checklist requirements until final
    approval, and six design waivers. Plaintiff objected to the waivers and argued
    the application was not complete.        Despite this, the Board deemed the
    A-3741-17T3
    5
    application complete and granted the checklist and deferral waivers, but
    refrained from approving the design waivers.
    On October 24, 2016, the Township entered into an Affordable Housing
    Agreement with Conifer to facilitate the construction, ownership, and
    management of a 100-unit affordable rental project on the Triangle Property in
    furtherance of satisfying the Township's affordable housing obligation.
    On March 13, 2017, the Committee introduced Ordinance No. 2017-1308.
    The Ordinance proposed to rezone the Triangle Site from O-Office to a newly
    created zone designated as AH-2. The purpose of the new zone was to "provide
    for non-age restricted, multi-family, 100% affordable, rental apartments and
    accessory uses.   The [O]rdinance was referred to the Planning Board for
    consistency review in accordance with N.J.S.A. 40:55D-26."
    The consistency review was completed on March 28, 2017; a letter
    confirming the Ordinance was not inconsistent with the Township's Master Plan
    was issued to the Committee the following day. The Committee conducted a
    public hearing and adopted the Ordinance on April 10, 2017.
    On March 31, 2017, Conifer applied for preliminary site approval to
    construct the 100-unit affordable rental project on the Triangle Site. The Board
    held public hearings on April 18, 25, and May 1, 2017. Conifer presented expert
    A-3741-17T3
    6
    testimony from its project engineer, traffic engineers, and project consultant.
    Old York was represented by counsel who cross-examined Conifer's witnesses
    at length. Old York also presented its own experts, including a licensed civil
    engineer and traffic expert. Although it had the opportunity to present expert
    testimony regarding landscaping concerns, Old York's expert did not appear for
    the April 25, 2017 hearing before the Board concluded testimony for the evening
    at approximately 11:30 p.m. The Board agreed to hear the expert's testimony at
    the subsequent May 1, 2017 hearing, but Old York advised the witness was "still
    unavailable."
    At the conclusion of the testimony, the Board granted Conifer's
    application for preliminary site plan approval, along with the requested waivers,
    based upon the evidence presented and subject to certain conditions. The Board
    adopted a Resolution on June 27, 2017, detailing its findings that the proposed
    development was a permitted use in the AH-2 zone, "consistent with the goals
    and objectives of the Master Plan[,] and in furtherance of the Township's
    affordable housing obligations."     The Board was further satisfied Conifer
    "submitted sufficient information on the fundamental elements of the [Plan] as
    to permit preliminary site plan approval."
    A-3741-17T3
    7
    On May 25, 2017, Old York filed an action in lieu of prerogative writs to
    challenge the Committee's adoption of the Ordinance and the Board's finding of
    consistency (Docket No. SOM-L-657-17) (the First Complaint). The complaint
    alleged: (1) the Ordinance violated the MLUL, in part, because the zone change
    was not recommended by the Township's 2011 Land Use Element or the 2014
    Master Plan Examination Report (count one); (2) the Committee engaged in
    unlawful contract zoning (count two); (3) the rezoning was unlawful because it
    constituted spot zoning (count three); and (4) the Township exceeded its zoning
    authority by sustaining the rental requirement imposed by the Ordinance (count
    four). The action sought to invalidate the Ordinance.
    On August 11, 2017, Old York filed a second action in lieu of prerogative
    writs based on the Board's grant of preliminary site plan approval to Conifer
    (Docket No. SOM-L-972-17) (the Second Complaint). The complaint alleged:
    (1) the Board's action was arbitrary, capricious, and unreasonable based on
    defects in Conifer's site plan application and the Board's refusal to allow Old
    York to put on a full objector case (count one); and (2) the Board lacked
    jurisdiction over Conifer's application (count two).    The action sought to
    overturn the preliminary site plan approval.
    A-3741-17T3
    8
    The trial court consolidated the first and second complaints for trial. On
    February 22, 2018, the court conducted a one-day bench trial. On March 14,
    2018, the court issued an order and written statement of reasons dismissing the
    first and second complaints with prejudice. The court concluded Old York failed
    to meet its heavy burden of proof. It further determined the Ordinance was
    neither arbitrary, capricious, nor unreasonable, represented a valid exercise of
    the Township's zoning power that advanced the creation of affordable housing,
    was consistent with the Master Plan, and advanced the purposes of the MLUL.
    The 2010 Revised Third Round Plan earmarked the Property for
    affordable housing. The Council on Affordable Housing (COAH) never ruled
    on the sufficiency of the 2010 Revised Third Round Plan and failed to adopt
    regulations governing the third round.     Nevertheless, the court found the
    Ordinance "is substantially consistent with COAH's Substantive Rules for the
    development of [the Township's] housing plan and represents a suitable site as
    defined by COAH's rules."
    The court rejected the opinions and conclusions of Old York's expert, John
    McDonough, finding they did not accurately or fully characterize the existing
    site conditions and the surrounding land uses. It further found his testimony
    stated negative impacts in a conclusory fashion without any evidence to support
    A-3741-17T3
    9
    such assertions. His testimony also did not fully analyze COAH's Second Round
    Rules and either ignored or did not fully analyze the Township's adopted land
    use policies with respect to the Ordinance and its application to the subject
    property. The court concluded McDonough did not present any convincing
    evidence that the Ordinance was in conflict with the MLUL and the credible
    testimony of the opposing experts "substantially outweigh and overcome his
    opinions in that regard."
    The court also rejected Old York's spot and contract zoning arguments
    since those concepts have no application to municipally owned property used in
    furtherance of the public purpose of creating affordable rental housing. It als o
    found the Ordinance is valid as part of a comprehensive plan, essential to the
    general welfare, and clearly within the Township's zoning power. The court
    rejected Old York's lack of jurisdiction argument. The court further found the
    record supported a finding that the developer provided sufficient information
    regarding the feasibility of a compliant stormwater management plan to the
    Board allowing it to grant preliminary site plan approval.
    As to Old York's claim that it was prevented from fully presenting its
    objector case, the court concluded Old York was given a fair and ample
    A-3741-17T3
    10
    opportunity to present witnesses and cross-examine the developer's witnesses,
    noting a planning board has discretion to limit testimony in a reasonable manner.
    This appeal followed. Old York seeks reversal of the dismissal of counts
    one and four of the first complaint and count one of the second complaint. It
    raises the following points on appeal:
    POINT I: THE TRIAL COURT ERRONEOUSLY
    DETERMINED THAT THE ORDINANCE WAS
    CONSISTENT WITH AND DESIGNED TO
    EFFECTUATE THE TOWNSHIP'S LAND USE
    ELEMENT.
    POINT II: IF THE APPELLATE COURT FINDS
    THAT THE ORDINANCE WAS INCONSISTENT
    WITH OR NOT DESIGNED TO EFFECTUATE THE
    LAND USE ELEMENT, THE ORDINANCE MUST
    BE DECLARED VOID.
    POINT III: THE TRIAL COURT'S AFFIRMATION
    OF THE RENTAL HOUSING REQUIREMENTS IN
    THE ORDINANCE WAS INCORRECT AS A
    MATTER OF LAW.
    POINT IV:  THE TRIAL COURT ERRED BY
    AFFIRMING   THE   BOARD'S GRANT   OF
    PRELIMINARY SITE PLAN APPROVAL TO
    CONIFER BECAUSE CONIFER FAILED TO
    PROVIDE       SUFFICIENT    EVIDENCE
    DEMONSTRATING THE FEASIBILITY OF ITS
    DRAINAGE AND STORMWATER MANAGEMENT
    PLANS.
    POINT V:  THE TRIAL COURT ERRED IN
    DETERMINING THAT THE BOARD PROVIDED
    A-3741-17T3
    11
    OLD YORK WITH ADEQUATE OPPORTUNITY TO
    PRESENT ITS OBJECTOR CASE DURING THE
    HEARINGS BELOW.
    II.
    Our review is governed by well-established principles.             "[W]hen
    reviewing the decision of a trial court that has reviewed municipal action, we
    are bound by the same standards as was the trial court." Fallone Props., L.L.C.
    v. Bethlehem Twp. Planning Bd., 
    369 N.J. Super. 552
    , 562 (App. Div. 2004).
    Thus, our review of the Township's and the Board's actions is limited.
    "[P]ublic bodies, because of their peculiar knowledge of local conditions,
    must be allowed wide latitude in their delegated discretion." Jock v. Zoning Bd.
    of Adjustment of Wall, 
    184 N.J. 562
    , 597 (2005). Therefore, "[t]he proper scope
    of judicial review is not to suggest a decision that may be better than the one
    made by the board, but to determine whether the board could reasonably have
    reached its decision on the record." 
    Ibid. Thus, a reviewing
    court must not
    substitute its own judgment for that of the local board unless there is a clear
    abuse of discretion. Cell S. of N.J., Inc. v. Zoning Bd. of Adjustment of W.
    Windsor Twp., 
    172 N.J. 75
    , 82 (2002) (citing Med. Realty Assocs. v. Bd. of
    Adjustment, 
    228 N.J. Super. 226
    , 233 (App. Div. 1988)).
    A-3741-17T3
    12
    "A presumption of validity attaches to a zoning ordinance that may be
    overcome only if an opponent of the ordinance establishes the ordinance is
    'clearly arbitrary, capricious or unreasonable, or plainly contrary to fundamental
    principles of zoning or the [zoning] statute.'" Manalapan Realty, L.P. v. Twp.
    Comm. of Twp. of Manalapan, 
    140 N.J. 366
    , 380 (1995) (alteration in original)
    (quoting Bow & Arrow Manor, Inc. v. Town of W. Orange, 
    63 N.J. 335
    , 343
    (1973)). "Although the judicial role is circumscribed, a court may declare an
    ordinance invalid if in enacting the ordinance the municipality has not complied
    with the requirements of the statute." Riggs v. Long Beach Twp., 
    109 N.J. 601
    ,
    611 (1988) (citing Taxpayer Ass'n of Weymouth Twp, Inc. v. Weymouth Twp.,
    
    80 N.J. 6
    , 20 (1976)). Riggs adopted the following objective test to determine
    an ordinance's validity:
    First, the ordinance must advance one of the purposes
    of the [MLUL] as set forth in N.J.S.A. 40:55D–2.
    Second, the ordinance must be substantially consistent
    with the land use plan element and the housing plan
    element of the master plan or designed to effectuate
    such plan elements, unless the requirements of that
    statute are otherwise satisfied. Third, the ordinance
    must comport with constitutional constraints on the
    zoning power, including those pertaining to due
    process, equal protection, and the prohibition against
    confiscation. Fourth, the ordinance must be adopted in
    accordance with statutory and municipal procedural
    requirements.
    A-3741-17T3
    13
    [Griepenburg v. Twp. of Ocean, 
    220 N.J. 239
    , 253
    (2015) (quoting 
    Riggs, 109 N.J. at 611
    –12 (citations
    and internal quotation marks omitted)).]
    In reviewing a municipal zoning board's decision, courts must be mindful
    that the Legislature vested zoning boards with the discretion to make decisions
    that reflect the character and level of development within their municipality.
    Booth v. Bd. of Adjustment of Rockaway, 
    50 N.J. 302
    , 306 (1967). A planning
    board's discretionary decisions carry a rebuttable presumption of validity.
    Harvard Enters., Inc. v. Bd. of Adjustment of Madison, 
    56 N.J. 362
    , 368 (1970).
    The "decision of a zoning board may be set aside only when it is 'arbitrary,
    capricious or unreasonable.'" Cell 
    S., 172 N.J. at 81
    . (quoting Medici v. BPR
    Co., 
    107 N.J. 1
    , 15 (1987)). The burden is on the challenging party to overcome
    this highly deferential standard of review. Smart SMR of N.Y., Inc. v. Borough
    of Fair Lawn Bd. of Adjustment, 
    152 N.J. 309
    , 327 (1998).
    III.
    We affirm the dismissal of the first and second complaints with prejudice
    substantially for the reasons stated by Judge Miller in his comprehensive and
    cogent statement of reasons. Judge Miller's findings are amply supported by the
    record and his conclusions fully comport with applicable legal principles. We
    discern no basis to disturb his rulings. We add the following comments.
    A-3741-17T3
    14
    Our Supreme Court has explained that its decisions in Southern
    Burlington County N.A.A.C.P. v. Mount Laurel Township., 
    67 N.J. 151
    , 179
    (1975) (Mount Laurel I) and South Burlington County N.A.A.C.P. v. Township.
    of Mount Laurel, 
    92 N.J. 158
    (1983) (Mount Laurel II):
    recognized that the power to zone carries a
    constitutional obligation to do so in a manner that
    creates a realistic opportunity for producing a fair share
    of the regional present and prospective need for
    housing low- and moderate-income families. The
    Legislature enacted the Fair Housing Act of 1985 (FHA
    or the Act), N.J.S.A. 52:27D-301 to -329, to assist in
    municipal compliance with that constitutional
    obligation.
    [In re Adoption of N.J.A.C. 5:96 and 5:97 by the N.J.
    Council on Affordable Hous., 
    221 N.J. 1
    , 3-4 (2015).]
    The Court emphasized its decades long constitutional doctrine of
    requiring municipalities to implement measures to make affordable housing
    "realistically possible." 
    Id. at 7.
    In 1975, this Court prohibited the discriminatory
    use of zoning powers and mandated that each
    developing municipality "must, by its land use
    regulations, make realistically possible the opportunity
    for an appropriate variety and choice of housing for all
    categories of people who may desire to live there, of
    course including those of low and moderate income."
    [Mount Laurel 
    I, 67 N.J. at 179
    , 187]. In 1983, the
    Court reaffirmed the constitutional obligation that
    towns provide “a realistic opportunity for the
    construction of [their] fair share of the present and
    A-3741-17T3
    15
    prospective regional need for low and moderate income
    housing.” [Mount Laurel 
    II, 92 N.J. at 205
    ] (citing
    Mount Laurel 
    I, 67 N.J. at 174
    ).
    [Ibid. (second alteration in original).]
    As correctly recognized by Judge Miller, the provision of affordable
    housing is "an absolute essential in promotion of the general welfare required in
    all local land use regulation," Mount Laurel I, 
    67 N.J. 151
    , 179 (1975), and
    advances one of the principles of the MLUL set forth in N.J.S.A. 40:55D-2,
    Sartoga v. Borough of West Paterson, 
    346 N.J. Super. 569
    , 580 (App. Div.
    2002). The Ordinance permissibly advances the goal of affordable housing in
    the Township.
    Old York contends the Ordinance constitutes impermissible spot zoning.
    We disagree. "'Spot zoning' is the use of the zoning power to benefit particular
    private interests rather than the collective interests of the community. It is
    zoning which disregards the requirement of [N.J.S.A. 40:55D-62(a)] that
    regulation be accomplished in accordance with a comprehensive plan to promote
    the general welfare." Weymouth 
    Twp., 80 N.J. at 18
    . Old York bears the burden
    of proving that the Ordinance constitutes illegal "spot zoning." 
    Id. at 19.
    We
    agree with the trial court that it did not satisfy that burden.
    A-3741-17T3
    16
    As observed by Judge Miller, the Property was owned by the Township.
    The Township is exempt from its zoning regulations. See Thornton v. Vill. of
    Ridgewood, 
    17 N.J. 499
    , 513 (1955) (noting the zoning statute "contain[s] no
    specific limitation upon municipal use of land"). This exemption has been
    extended to entities who join in advancing a public purpose. Hills of Troy
    Neighborhood Ass'n. v. Twp. of Parsippany-Troy Hills, 
    392 N.J. Super. 593
    ,
    607 (Law Div. 2005).       Nevertheless, municipal exemption from zoning
    regulation is subject to a test of reasonableness. 
    Id. at 601-06.
    We do not find
    the use of the Property for affordable housing to be unreasonable.
    More fundamentally, the Ordinance advanced the general welfare of the
    community and the State by promoting the availability of affordable housing in
    the Township, thereby addressing its constitutional mandate to make low and
    moderate income housing "realistically possible."
    As further noted by the judge, the Property "is contiguous to [Old York's]
    property which is a high density, inclusionary, affordable housing project.
    Certainly, the use type is compatible with surrounding uses." The judge also
    found "the bulk standards for building height, buffering and building separation
    are reasonable and rational under the circumstances. Further, those standards,
    although slightly different from the zoning on Old York's contiguous parcel,
    A-3741-17T3
    17
    they are in substantial conformity with the zone plan and the surrounding
    properties." We agree "that that the record supports the proposition that the
    proposed Ordinance is part of a comprehensive plan."
    Finally, we address Old York's argument that the Board prevented it from
    presenting its entire objector case. Old York contends the Board arbitrarily and
    unreasonably precluded it from presenting the testimony of its expert regarding
    landscaping concerns. The record reveals the expert chose to attend a hearing
    in a different municipality on April 25, 2017, and did not arrive until 11:30 p.m.
    before the Board. By that point, testimony was concluded for the evening. The
    Board offered to allow the expert to testify on May 1, 2017, but the expert did
    not appear. Old York maintains that the expert was not available on that date
    without providing specific reasons for his unavailability.
    The judge found Old York "was given a fair and ample opportunity to
    present witnesses and cross-examine Conifer's experts." It "had three meetings
    to present the testimony of a landscape witness, but unfortunately it chose a
    witness who could not attend." A township planning board has discretion to
    limit testimony and cross-examination in a reasonable manner. The court noted
    that pursuant to N.J.S.A. 40:55D-10(d), the testimony of witnesses is "subject
    to the discretion of the presiding officer and to reasonable limitations as to time
    A-3741-17T3
    18
    and number of witnesses." Moreover, "[j]ust because a person is an objector
    does not confer an absolute right to have an applicant's matter adjourned due to
    claimed inability to attend one of several scheduled hearings." Mercurio v.
    DelVecchio, 
    285 N.J. Super. 328
    , 334-35 (App. Div. 1995). "Generally, it is the
    applicant and the Board that control the scheduling of the application." 
    Id. at 335.
    The judge also found that "[t]he Board simply followed its own rules that
    no testimony be heard after 10:30 p.m." The Board's decision to adjourn the
    hearing at 11:30 p.m. and to "'start fresh' on May 1, 2017" were deemed rational
    and appropriate. Under the totality of the circumstances, we discern no abuse
    of discretion by the Board or the judge.
    Affirmed.
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