Township of Fairfield v. State of New Jersey, Department of Transportation , 440 N.J. Super. 310 ( 2015 )


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  •                    NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-2390-13T1
    TOWNSHIP OF FAIRFIELD,                   APPROVED FOR PUBLICATION
    April 10, 2015
    Appellant,
    APPELLATE DIVISION
    v.
    STATE OF NEW JERSEY,
    DEPARTMENT OF TRANSPORTATION,
    Respondent.
    __________________________________________________
    Argued November 12, 2014 - Decided April 10, 2015
    Before Judges Fisher, Nugent and Manahan.
    On    appeal    from      the    Department       of
    Transportation.
    Dennis M. Galvin argued the cause for
    appellant (The Galvin Law Firm, attorneys;
    Mr. Galvin, on the briefs).
    Nicole T. Minutoli, Deputy Attorney General,
    argued the cause for respondent State of New
    Jersey Department of Transportation (John J.
    Hoffman, Acting Attorney General, attorney;
    Lewis A. Scheindlin, Assistant Attorney
    General, of counsel; Ms. Minutoli, on the
    brief).
    Salvatore Salibello, attorney for respondent
    Pio Costa Enterprises, joins in the brief of
    respondent   New    Jersey   Department   of
    Transportation.
    The opinion of the court was delivered by
    MANAHAN, J.S.C. (temporarily assigned)
    Fairfield     Township       (Fairfield)     appeals       from     the   final
    determination     of   the    Director      of   the   Division     of    Multimodal
    Services,     Department      of        Transportation     (DOT),        granting     a
    Helistop "Special Use" license to Pio Costa Enterprises upon
    application of one of its principals, Anthony Pio Costa (Pio
    Costa).     After reviewing the record in light of the contentions
    advanced on appeal and the applicable law, we affirm.
    Pio Costa is an owner of property located in an industrial
    park in Fairfield.           Pursuant to Fairfield's zoning ordinance,
    the   use    of    the   property          for   helistops       is      prohibited.
    Nonetheless,      commencing       in    1994,   Pio     Costa    was     granted     a
    temporary helistop license by the DOT.                   The temporary license
    was renewed in 1995 and 1996.               In 1997 Pio Costa applied for a
    permanent helistop license which the DOT issued for the time
    period of January 1, 1998 to January 31, 1999.                   After expiration
    of the license, Pio Costa continued to use the property as a
    helistop.
    Fairfield instituted a civil action in the United States
    District Court naming Pio Costa and various corporate entities
    as defendants relative to the use of the helistop.                       In a ruling
    on March 20, 2006, a district judge denied Pio Costa's motion
    2                                 A-2390-13T1
    for   summary      judgment      noting       the     validity          of     the    zoning
    ordinances      was      not    preempted        by        the     Federal           Aviation
    Administration.       The district judge remanded the matter to the
    Superior Court of New Jersey for disposition.
    Subsequent to the remand, and upon the filing of an order
    to show cause by Fairfield, the trial court entered an order
    temporarily     restraining        the    defendants             from     "operating         or
    permitting to be operated any and all helicopters upon, on or
    from the subject property pending further order of the court."
    A hearing took place on April 18, 2007.                       After oral argument,
    the judge continued the restraints.                        The judge noted in the
    decision   that    Pio    Costa    failed      to     apply       to     the   DOT     for    a
    license.
    Thereafter,        Pio    Costa     filed       an    application          with      the
    Division of Aeronautics of the DOT seeking a permanent helistop
    license.      In   response,      the    DOT    denied       the        issuance      of   the
    requested license predicated upon the requirement that Pio Costa
    apply to the appropriate planning authority for permission to
    maintain the proposed helistop.               N.J.A.C. 16:54-2.1(a)(6).
    In 2010, Pio Costa applied for a use variance.                                  At the
    conclusion    of   three       hearing    dates,      the     Board       of    Adjustment
    (Board) denied the application in a resolution.                           Pio Costa then
    filed a complaint in lieu of prerogative writs.
    3                                          A-2390-13T1
    Pio Costa's attorney informed the DOT by letter about the
    Board's denial of the application.                           In a written response, the
    Deputy      Attorney          General        on    behalf    of     the    DOT,   advised      the
    attorney            that     the       DOT     "will      not     approve     your      client's
    application           for     a    permanent         license."        The    letter      further
    advised         a    waiver       of     the      application's      requirements        may    be
    requested but "that it is unlikely" a waiver would be granted
    "in light of [Fairfield's] denial of [Pio Costa's] application
    for    a    variance."             Notwithstanding           this    communication       and    in
    clear contravention to its advisement, the DOT did permit the
    application to proceed which ultimately resulted in the issuance
    of a license in February 2012.1                          Fairfield was never notified of
    the application's "revived" status nor was it consulted for its
    input.
    In   furtherance             of   the    revived     process,      Pio    Costa     was
    required to publish public notice of the application, which he
    did.        There          were    no    responses        filed     with    the   DOT    to    the
    publications.              During the process, two specialists from the DOT
    provided Pio Costa with a list of site conditions that were
    required to be corrected prior to the issuance of a license.                                   In
    February 2012, Pio Costa corrected the site condition issues and
    1
    The record includes e-mails between Pio Costa's counsel and an
    Aeronautical Specialist from the DOT relative to a continuing
    investigation with the purpose of re-licensing.
    4                                  A-2390-13T1
    provided       the    required      documentation         to    the    DOT.        Pio   Costa
    advised the DOT that the helistop was ready for inspection.                                  Two
    specialists from the DOT completed an evaluation using licensing
    criteria       set    forth    in    N.J.A.C.      16:54-2.5.           Pursuant      to     the
    evaluation, the specialists found there were no negative impacts
    on    health    and    safety       and   defendant       was       issued   a     license   on
    February       28,    2012.         The   license    was        purportedly        served     by
    counsel upon Fairfield on March 6, 2012.2
    When Fairfield became aware of the use of the property as a
    helistop,       it    filed     a    timely       appeal       of    the     DOT    decision.
    Subsequent to a pre-argument conference, the appeal was stayed
    pending the outcome of the prerogative writ action.                                 After Pio
    Costa    dismissed       the    action     with     prejudice,         the    stay    of     the
    appeal was lifted.
    During the pendency of the appeal and in accordance with
    Rule    2:5-1(b),       the    Director       of    the    Division          of    Multimodal
    Services (Director) filed a "Statement of Reasons for Decision."
    Thereafter, the DOT filed a motion, which we granted, seeking
    remand for further consideration of issues raised on appeal.
    Upon remand, the DOT requested Fairfield and Pio Costa to
    provide additional arguments.                 Fairfield argued the helistop was
    contrary to sound planning and unsafe due to its proximity to an
    2
    Fairfield denies receiving notification in this manner.
    5                                       A-2390-13T1
    airport,    a    cellular    tower,    a       car    wash,       a    neighborhood        of
    residential homes and a highway.                In response thereto, and after
    noting     the   objections    of     Fairfield,            the       DOT    altered      the
    "Restricted Use" license issued to Pio Costa to a "Special Use"
    license.
    As a result of the DOT's investigation, it was determined
    the radio cellular tower, as well as the car wash, was located
    outside the safety area specified in the FAA Advisory Circular
    for Helistops.      It was also noted Pio Costa erected a four-foot
    fence    separating    the   helistop          from   the    car      wash    and     posted
    warning signs.        In regard to the residential homes, the DOT's
    investigation determined the nearest residence was not impacted
    by the approach/departure path.                The DOT also made note that it
    was normal procedure to place the approach/departure path over a
    highway to have minimal impact on residential areas.                                 In the
    "Statement of Reasons for Decision", the Director concluded:
    Based upon the review of application, the
    documents from respective counsels from the
    Township of Fairfield and Anthony Pio Costa,
    denial of a variance by the Fairfield Zoning
    Board    of    Adjustment   and    the    site
    inspections, the Division determined that
    Anthony Pio Costa was entitled to a helistop
    license for the Bloomfield Avenue location.
    In this particular instance, there was a
    history of helicopter use at the location.
    Prior helicopter use presented no safety or
    operational   issues   and   there   were   no
    complaints about such use from the general
    public.    The added cellular tower did not
    6                                        A-2390-13T1
    create an unsafe condition. The location is
    in an industrial area and is bounded by
    heavily trafficked roadways.   There is no
    interference with residential use.   It was
    determined that Township concerns could be
    addressed by issuing a special use license.
    The special use license restricts users of
    the helistop to Anthony Pio Costa only,
    using the helistop only in the daytime
    visual meteorological conditions in the
    helicopter listed on the license.       The
    license also requires at least one (1)
    safety observer in place when the helistop
    is being used.
    After   the   issuance   of    the   decision,   Fairfield   filed   an
    appeal.
    On appeal, Fairfield raises the following points:
    POINT I
    THE DEPARTMENT OF TRANSPORATION'S FAILURE TO
    HOLD A CONTESTED PUBLIC HEARING, PRIOR TO
    ISSUING A HELISTOP LICENSE TO PIO COSTA, WAS
    A FATAL PROCEDURAL DEFECT.
    POINT II
    THE DOT FAILED TO ADEQUATELY CONSIDER THE C-
    3 ZONE'S PROHIBITION AGAINST HELIPADS AND
    THE ZONING BOARD'S DENIAL OF PIO COSTA'S USE
    VARIANCE.
    POINT III
    THE DOT'S PROCESS FOR CONSIDERING LOCAL LAND
    USE HAS DEVOLVED INTO APPROVAL, SUBJECT TO A
    LAND USE BOARD DETERMINATION.
    POINT IV
    THE DOT'S UNDERSTANDING AND APPLICATION OF
    GARDEN STATE FARMS, INC. v. BAY II IS
    MISPLACED, OR IN THE ALTERNATIVE, THAT THE
    7                            A-2390-13T1
    COURT'S RULING OF MORE THAN [35] YEARS AGO
    REQUIRES   RECONSIDERATION, BASED  UPON   A
    CHANGE IN LEGISLATIVE INTENT, BECAUSE THE
    LOCATING OF AERONAUTIC FACILITIES WITHOUT
    LOCAL ZONING APPROVAL RENDERS THE MUNICIPAL
    LAND USE LAW NUGATORY.
    A.    AVIATION ACTS
    B.    OTHER VIEWS
    C.    THE AVIATION ACT DOES NOT PREEMPT
    THE MUNICIPAL LAND USE LAW AS IT
    CURRENTLY EXISTS.
    D.    THE HYBRID PREEMPTION PROCEDURE OF
    GARDEN STATE FARMS IS BAD PUBLIC
    POLICY    AND    NEEDS    TO    BE
    RECONSIDERED, BECAUSE IT RENDERS
    THE MLUL SUPERFLUOUS.
    POINT V
    THE DOT'S PHOTOS ARE MISLEADING.
    In Fairfield's supplemental brief, it raises the following
    points:
    POINT I
    THE DOT HAS FAILED TO TURN SQUARE CORNERS.
    POINT II
    THE DOT LACKS AUTHORITY TO ORDER             THE
    ISSUANCE OF ZONING OR BUILDING PERMIT.
    POINT III
    THE PROPOSED HELISPOT IS UNSAFE.
    Our   scope    of   review    of   a   final   decision    of    an
    administrative agency is strictly limited.         In re Taylor, 158
    8                           A-2390-13T1
    N.J. 644, 656 (1999).              We must sustain the agency's action in
    the    absence      of   a   "'clear        showing'       that      it   is     arbitrary,
    capricious, or unreasonable, or that it lacks fair support in
    the    record[.]"         Circus     Liquors,       Inc.      v.    Governing      Body   of
    Middletown Twp., 
    199 N.J. 1
    , 9 (2009).
    When     reviewing     a     final     decision         of    an   administrative
    agency,       we   consider       whether        there    is       sufficient     credible
    evidence to support the agency's factual findings.                               Clowes v.
    Terminix Int'l, Inc., 
    109 N.J. 575
    , 587 (1988).                           We must affirm
    the agency's factual findings if we are satisfied "that the
    evidence and the inferences to be drawn therefrom support" the
    agency's      decision.       
    Id. at 588.
        Applying        this      standard   of
    review to the issues presented by Fairfield, we discern no basis
    to    disturb      the   Director's       decision       to    grant      a    Helistop-Use
    Restricted license.
    Fairfield argues its zoning ordinance barring helistops and
    the    Board's      resolution      denying        the   application           should   have
    effectively precluded the Director from issuing the license.                               We
    conclude the adopted regulatory scheme and relevant case law do
    not comport with Fairfield's argument.
    Pursuant to the Aviation Act, the DOT is charged with the
    supervision over aeronautics within this
    State,   including,  but   not   by   way   of
    limitation . . . heliports and helistops . .
    .   .     [It]   may adopt   and    promulgate
    9                                     A-2390-13T1
    reasonable rules, regulations and orders . .
    . commensurate with the needs of public
    safety . . . and to develop and promote
    aeronautics within this State.
    [N.J.S.A. 6:1-29.]
    Therefore, the DOT is tasked with "the ultimate authority
    as to the placement of aeronautical facilities."                     Garden State
    Farms,   Inc.   v.   Bay,     
    77 N.J. 439
    ,    454    (1978).     Thus,    while
    municipalities may pass ordinances restricting heliports under
    N.J.S.A.   40:55D-2,         "they    must       not     exercise   their     zoning
    authority so as to collide with expressed policy goals of the
    State legislation, N.J.S.A. 6:1-20[.]"                  Ibid.; see also Overlook
    Terrace Mgmt. Corp. v. Rent Control Bd. of W. N.Y., 
    71 N.J. 451
    ,
    461-62 (1976).
    Although the DOT need not "give controlling weight to local
    zoning provisions,"          Garden State 
    Farms, supra
    , 77 N.J. at 454-
    55,   neither   should       it    "arbitrarily        [override]   all    important
    legitimate local interests[,]" the DOT "ought to consult with
    the local authorities and sympathetically listen and give every
    consideration to local objections, problems and suggestions in
    order to minimize the conflict as much as possible."                      
    Id. at 455
    (quoting Rutgers, State Univ. v. Piluso, 
    60 N.J. 142
    , 153-54
    (1972)).    The      DOT's    failure      "to    weigh    conscientiously     local
    interests, to examine carefully whether the proposed navigation
    10                               A-2390-13T1
    facility is compatible with the surrounding land uses and to
    consult      the       local      ordinances          and    authorities        in     making       its
    licensing         decision        would       constitute       an    abuse     of     discretion."
    
    Id. at 456.
    In Garden State Farms, the municipality adopted a zoning
    ordinance that prohibited the principal or accessory use of land
    for    the    purpose            of    accommodating          helicopter            take-offs       and
    landings.          Garden State 
    Farms, supra
    , 77 N.J. at 444.                                       The
    license applicant brought suit asserting the State's statutory
    authority over the location of aviation facilities.                                   
    Ibid. The Court disagreed
    with the applicant on the preemption
    issue, but held the "dominant legislative intent of the Aviation
    Act   is     to    repose        in     the      Commissioner        of    Transportation           the
    ultimate          authority           as      to     the     placement         of     aeronautical
    facilities[.]"              
    Id. at 454.
               The Court determined that, although
    the    State's              aeronautical            authority        did       not     preempt        a
    municipality's authority to adopt zoning ordinances pertaining
    to    aeronautical            facilities,            DOT    was     vested     with     the     final
    authority         to    approve            and     license    such        facilities.           
    Ibid. Because of this,
    the Court held a local zoning ordinance could
    not   operate          as    a   bar       to      DOT's    grant    of    a    license       for    an
    aeronautical           use.           
    Ibid. Therefore, a municipality
           cannot
    11                                   A-2390-13T1
    exercise its zoning authority "so as to collide with" the final
    decisions of the DOT.        
    Ibid. It is clear
    that while the DOT must carefully consider the
    local municipality's zoning concerns, the "ultimate authority
    over the regulating and licensing of aeronautical activities and
    facilities" remains with the Commissioner.                 Tanis v. Twp. of
    Hampton, 
    306 N.J. Super. 588
    , 599 (App. Div. 1997) (quoting
    N.J.A.C.       16:54-1.1(b)).        The    Commissioner    has     sufficient
    statutory authority "to override local zoning decisions," 
    id. at 600,
      and     retains    "supervision      over   aeronautics    within    this
    State, including, but not by way of limitation, the aviation,
    flight and operation of aircraft, the establishment, location,
    maintenance, operation, size, design, repair, management and use
    of airports . . . ."        N.J.S.A. 6:1-29.
    Here,     the     Director    gave     careful     consideration        to
    Fairfield's      objections     to   the    application    and    the   Board's
    resolution denying the use variance application.                  Contrary to
    Fairfield's contentions, the Director "conscientiously [weighed
    the] local interests, [examined] carefully whether the proposed
    aviation facility is compatible with surrounding land uses and
    [consulted] the local ordinances and authorities in making [his]
    12                               A-2390-13T1
    licensing decision[.]"              Garden State 
    Farms, supra
    , 77 N.J. at
    456.3
    Under the terms of the license issued by the Director, the
    helistop could not be used by anyone other than Pio Costa and
    only in a specified authorized aircraft.                    The helistop could
    only be used during the day.
    By       consideration   of     the    safety     concerns     raised     by
    Fairfield,         the   investigation   of    those     concerns    and   imposing
    restrictions on the license granted, the DOT complied with the
    requirements of Garden State Farms.
    Fairfield also argues the Director should have conducted
    either       a   contested   case    hearing   or   an   informational     hearing
    before determining whether to grant the license application.                       We
    disagree.
    In the "Statement of Reasons for Decision," the Director
    did not specifically reference whether the licensing application
    presented a "contested case" under the Administrative Procedure
    Act (APA) and, therefore, whether there was a need to conduct an
    adversarial hearing.          Nonetheless, we find no error.
    3
    As an example of the balanced approach, Fairfield disputed some
    of the specialists' individual scoring decisions on the criteria
    for licensure set forth in N.J.A.C. 16:54-2.5(a). For the most
    part, however, the objections Fairfield raised concern scores
    which were weighted by the DOT specialists in Fairfield's
    favor.
    13                                A-2390-13T1
    The APA defines a "contested case" as:
    a   proceeding,   including   any  licensing
    proceeding, in which the legal rights,
    duties, obligation, privileges, benefits or
    other legal relations of specific parties
    are required by constitutional right or by
    decisions,    determinations,   or   orders,
    addressed to them or disposing of their
    interests, after opportunity for an agency
    hearing[.]
    [N.J.S.A. 52:14B-2(b).]
    Fairfield       accurately    states     it     has       been   granted       the
    statutory    authority       to     enact     zoning        ordinances        and   make
    decisions    concerning      them.          N.J.S.A.    40:55D-62.             However,
    Fairfield has not cited to any statute or controlling decisions
    that   require     a    contested    case    hearing        as   a   predicate      when
    considering an application for a helistop license.
    Fairfield's right to enact zoning ordinances flows from a
    State constitutional provision, N.J. Const. art. IV, § 6, ¶ 2,
    but that provision does not grant a constitutional right to a
    hearing   under    the     circumstances      of     this    case.       It    is   well
    established that "[t]he requirements of procedural due process
    apply only to the deprivation of interests encompassed by the
    Fourteenth Amendment's protection of liberty and property."                           Bd.
    of Regents v. Roth, 
    408 U.S. 564
    , 569, 
    92 S. Ct. 2701
    , 2705, 
    33 L. Ed. 2d 548
    , 556 (1972).
    14                                      A-2390-13T1
    Fairfield does not have a "liberty interest" that has been
    implicated by the helistop application.                   Likewise, Fairfield has
    no protected property interest.                   A person or entity that is
    merely interested in, or potentially affected by, the outcome of
    an administrative decision does not have a constitutional right
    to    a    contested      case-type    hearing        concerning       an    application.
    Elizabeth Fed. Sav. & Loan Ass'n v. Howell, 
    24 N.J. 488
    , 505-06
    (1957).
    Further,   the    Director       did   not    abuse    his    discretion       by
    deciding       not   to    conduct     a    public     informational          hearing    as
    permitted by N.J.A.C. 16:54-2.4(a).                     This regulation provides
    "[t]he Commissioner [DOT] may require . . . public hearings
    and/or       informational        meetings       to     be      held        regarding    an
    application for license."              N.J.A.C. 16:54-2.4(a).                Therefore, a
    hearing is neither automatic nor mandatory in all cases.
    Here, the Director explained in the decision that a hearing
    was not required because there were no material facts in dispute
    and the issues were clearly framed by the submissions of Pio
    Costa's and the Board's attorneys and the Board's resolution
    denying the variance.
    Additionally, as noted, Fairfield and Pio Costa were given
    the       opportunity      to   provide     further     arguments       regarding       the
    license.       Fairfield has provided no support for the argument it
    15                                    A-2390-13T1
    was denied the opportunity to present any relevant facts or
    argument in furtherance of its opposition to the application or
    that an informational hearing was requisite for that purpose.
    The   record   substantiates    that      no   informational   hearing     was
    required.
    In sum, consistent with our standard of review, we conclude
    there was sufficient credible evidence in the record to support
    the Director's decision to grant the application for a Helistop
    "Special    Use"   license.    The   decision     was    neither   arbitrary,
    capricious, nor unreasonable.
    The remaining arguments raised are without sufficient merit
    to warrant discussion in a written opinion.             R. 2:11-3(e)(1)(E).
    Affirmed.
    16                              A-2390-13T1
    ______________________________________
    FISHER, P.J.A.D., concurring.
    I concur in today's judgment, which I agree is compelled by
    Garden State Farms, Inc. v. Bay, 
    77 N.J. 439
    (1978), even though
    – were the slate blank – I would follow the approach cogently
    described by Judge Conford in his separate opinion in that case,
    
    id. at 457-58.
        In examining the Aviation Act, N.J.S.A. 6:1-20
    to -44, Judge Conford found no evidence the Commissioner was
    given the authority to permit a helistop in a place lawfully
    rejected by a municipality.           Garden 
    State, supra
    , 77 N.J. at
    457.     The majority, however, determined the Act provides the
    Commissioner with superseding authority over the municipality,
    although   the   Commissioner   may    not   completely   disregard   local
    
    concerns, 77 N.J. at 451
    , and must "pay due attention," 
    id. at 455,
    to the lawful zoning expressions of local governments.             See
    also Rutgers, State Univ. v. Piluso, 
    60 N.J. 142
    , 154 (1972)
    (holding the Commissioner must "sympathetically listen" to local
    concerns).
    Here, the Commissioner asserts the municipality's concerns
    were considered, and the record does not demonstrate otherwise.
    Notwithstanding, I would question whether – when such a conflict
    arises – greater weight should be given to the extent, if any,
    the public welfare will be served by a helistop's location.             For
    example, a decision to permit a helistop in a location found
    unsuitable by local authorities, in my view, should be entitled
    to less deference when, as here, the helistop will be used only
    for the convenience of a single individual with no concomitant
    public benefit.       Overriding the expressed local concerns in that
    instance seems inconsistent with the Act's purpose, which is to
    develop aeronautics in this State "in the interest of public
    safety," N.J.S.A. 6:1-20, and not for the pleasure of a single
    individual.      I    think,   in   the      circumstances    presented,      the
    Commissioner should have assigned much greater weight to the
    municipality's opposition and, for that reason, we should give
    less deference to the Commissioner's determination.
    Garden   State,    however,     concludes    it   is   enough    that   the
    Commissioner listen to the municipality's opposition.                    Because
    the   record   does   not   suggest    the    municipality    was     completely
    disregarded, and because we are bound by Garden State to defer
    in that instance, I am obligated to concur in today's judgment.
    2                                A-2390-13T1