GERTRUDE WALSH VS. CITY OF CAPE MAY PLANNING BOARD(L-0434-15, CAPE MAY COUNTY AND STATEWIDE) ( 2017 )


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    APPROVAL OF THE APPELLATE DIVISION
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    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-0170-16T4
    GERTRUDE WALSH,
    Plaintiff-Respondent,
    v.
    CITY OF CAPE MAY PLANNING
    BOARD,
    Defendant-Appellant,
    and
    CHRISTOPHER HEIN,
    Defendant/Intervenor-
    Respondent.
    _________________________________________
    Argued September 27, 2017 – Decided October 17, 2017
    Before Judges Nugent and Geiger.
    On appeal from Superior Court of New Jersey,
    Law Division, Cape May County, Docket No. L-
    0434-15.
    Richard M. King, Jr., argued the cause for
    appellant.
    Christopher M. Baylinson argued the cause for
    respondent Gertrude M. Walsh (Perskie Mairone
    Brog Barrera & Baylinson, PC, attorneys; Mr.
    Baylinson, of counsel and on the brief).
    Christopher D. Hein, respondent, argued the
    cause pro se.
    PER CURIAM
    Defendant City of Cape May Planning Board (the Board) appeals
    an August 1, 2016 order granting an owner, plaintiff Gertrude
    Walsh, relief in an action in lieu of prerogative writs.           The Law
    Division nullified the Board's denial of a bulk variance that
    plaintiff had sought for a residential parcel pursuant to N.J.S.A.
    40:55D-70(c)(2).    Having concluded the Board could have reasonably
    reached its decision on adequate evidence in the record before it,
    we vacate the Law Division's order and reinstate the Board's
    decision.
    I.
    The    pertinent   facts   and   procedural   circumstances   are    as
    follows.     Walsh has owned residential property located in Cape
    May, New Jersey (the property) for approximately thirty-eight
    years.     The property is 120 feet wide and 100 feet deep.          It is
    improved with a one and one-half story residence, garage structure
    and two off-street parking spaces.
    Walsh applied to the Board for minor subdivision approval to
    subdivide the property into two lots for the construction of two
    single family homes.     The 12,000 square foot property is located
    in an R-3A medium density residential district.        Cape May's zoning
    2                            A-0170-16T4
    ordinance imposes a 6,250 square foot minimum lot size in R-3A
    zone districts. Consequently, the application also sought a (c)(2)
    variance pursuant to N.J.S.A. 40:55D-70(c)(2) for each proposed
    6,000 square foot lot because each fell 250 square feet below the
    minimum lot area requirement.
    The Board heard Walsh's application on August 25, 2015.
    Harold E. Noon, Jr., a licensed professional planner and surveyor,
    testified on behalf of Walsh.        Craig R. Hurless, a licensed
    professional   engineer,   professional   planner,   and   certified
    municipal engineer, testified on behalf of the Board.      Four local
    residents and an attorney representing a fifth local resident
    participated during the public comment period.
    Noon testified, generally, that in the same block as the
    property, there are nine lots smaller than the proposed lots and
    ten undersized lots. He noted that in the area immediately outside
    of the block, there are forty-three lots smaller than the proposed
    lots, nine that are the same size, and only two that are larger.
    Noon stated that the several nearby lots were only 4,000 or 5,000
    square feet.
    Noon indicated that the houses in the neighborhood range from
    as small as 1,300 square feet to as large as 2,500 square feet.
    Based on the current maximum floor area ratio for an R-3A zone, a
    4,800 square foot residence could be constructed on the existing
    3                            A-0170-16T4
    12,000 square foot parcel.          Noon maintained that a residence that
    large would overshadow everything around it and be out of character
    for the neighborhood, thereby causing a negative impact.
    Noon further opined that the proposed 6000 square foot lots,
    which are only four percent below minimum lot size, would be more
    harmonious and fit into the character of the neighborhood, thereby
    preserving its character and benefitting the community.                 Noon also
    claimed that the proposed lots would not be detrimental to the
    neighborhood      and,    therefore,          the   benefits    outweighed     any
    detriment.
    Relying on the Supreme Court decision in Kaufmann v. Planning
    Board for Warren, 
    110 N.J. 551
    , 563 (1988) and an unpublished
    opinion, Walsh argued that where an area is dominated by a certain
    lot size, and the proposed lots mirror what the dominant sizes
    are,    the   benefits   of   the    harmonious      lot    sizes   outweigh   the
    detriments.
    Hurless,   who    serves     as   the   Board's     engineer,   testified:
    "There is an existing single-family dwelling and what's indicated
    as a guest house that currently exists on the property."                         He
    indicated that both existing structures would be demolished to
    construct two new homes, each having a floor area of 2181 square
    feet.    Hurless further testified that certain conditions, which
    are not pertinent to this appeal, should be conditions of approval.
    4                               A-0170-16T4
    The reference to a guest house on the property related to one
    of Walsh's submissions.     Noticeably absent from the record is any
    testimony or evidence that there is a non-conforming guest house
    on the property. Indeed, Noon did not mention or offer any opinion
    that the structure was a non-conforming guest house.      During oral
    argument in the Law Division, Walsh contended for the first time
    that the purported guest house was a non-conforming use that would
    be eliminated if the variance and subdivision were approved.
    Four members of the public who owned parcels within 200 feet
    of   the   property,   including   intervenor   Christopher   D.     Hein,
    testified in opposition to the application.
    Hein argued that there was no objection when the 6250 square
    foot minimum lot size was adopted in 2004.          Nor was there an
    objection when the R-3A zone districts were created in 2005.           Hein
    noted that the applicant had more than ample opportunity to oppose
    those zoning changes, since she owned the property for thirty-
    eight years.
    Hein further argued that if approved, this would be the first
    subdivision in this area in the last sixty years.        The proposed
    lots would be the smallest lots on the street, with side yards
    reduced by one-half.       He pointed out that the proposal would
    undermine several goals of zoning, decreasing light, air, and open
    5                              A-0170-16T4
    space. He indicated that the proposal would also negatively impact
    congestion and parking, making the street much more hazardous.
    Joseph Gloviak, who resides on the same street as Walsh,
    testified that the proposed development would make the existing
    flooding and inadequate storm protection conditions on the street
    even worse.
    An attorney on behalf of Martha Robinson and John Azar, who
    also reside on the same street, remarked that it is a very small,
    quaint, quiet street, which would be changed by the proposed
    development.   He also voiced concern about the precedential impact
    if the application were granted.
    The Board denied the application by a vote of three to five
    and memorialized its findings and decision in Resolution No. 10-
    13-2015:1.     The Resolution incorporated the following findings
    pertinent to this appeal:
    18. The Board finds that the purposes of the
    Zoning Ordinance of the City of Cape May as
    set forth in Section 525-2B(1) through (14)
    and of the Municipal Land Use Law of the State
    of New Jersey enumerated in N.J.S.A. 40:55D-
    2(a) through (p) would not be advanced by
    granting a variance to deviate from the
    requirements of Section 525-16.1B(1) Table 1
    []minimum lot size requirement of the Zoning
    Ordinance because the Board finds that the
    applicant has failed to establish a special
    reason that would advance those purposes. The
    Board finds that the creation of two
    undersized lots in the R-3A Medium Density
    District    which   would   result    in   the
    6                          A-0170-16T4
    construction of 2 single family dwellings on
    Swan Avenue which is a narrow street and a
    unique neighborhood and that such development
    is contrary to the master plan adopted by the
    City.   The Board finds that the proposed
    development does not create a more harmonious
    condition in the neighborhood than the current
    condition of the property.
    19. The Board further finds that the criteria
    set forth in N.J.S.A. 40:55D-70[c](2) has not
    been satisfied and that there are no benefits
    to the community in the applicant's proposal
    and that the only benefits are to the
    applicant. In addition, this benefit to the
    applicant of subdividing the property which
    would permit the construction and sale of 2
    dwelling units is substantially outweighed by
    the detriment to the community that would
    result from the increase in traffic, parking
    on Swan Avenue and the creation of additional
    nonconformities in the Zoning District and
    City.    The area in which the applicant's
    property is located is part of Frog Hollow
    which is the lowest part of town and is prone
    to flooding.   The Board determines that the
    best way to preserve the character of the
    neighborhood is to maintain the current
    configuration of the property. The Board also
    finds that the applicant has failed to satisfy
    the negative criteria because the application
    cannot    be  granted    without   substantial
    detriment to the public good and such variance
    relief would impair the intent and purpose of
    the zone plan and Zoning Ordinance. The Zone
    plan as reflected in the master plan which has
    been updated and in which it is determined
    what the minimum lot size in the R-3A Zone for
    a single family dwelling; the master plan and
    Zoning Ordinance did not determine the minimum
    lot size to be what the applicant is
    proposing. The applicant's proposal does not
    meet any of the goals or objectives of the
    master plan or zoning ordinance.
    7                          A-0170-16T4
    On September 8, 2015, Walsh filed an action in lieu of
    prerogative    writs,    alleging    that   the    Board's     decision      was
    arbitrary, capricious, and unreasonable.          Following a hearing, the
    Law Division judge issued an order and written memorandum of
    decision, reversing the Board.        This appeal followed.
    II.
    "Our standard of review for the grant or denial of a variance
    is the same as that applied by the Law Division."                 Advance at
    Branchburg II, LLC v. Branchburg Twp. Bd. of Adjustment, 
    433 N.J. Super. 247
    , 252 (App. Div. 2013).           Specifically, "when a party
    challenges a zoning board's decision through an action in lieu of
    prerogative writs, the zoning board's decision is entitled to
    deference."    Kane Props., LLC v. City of Hoboken, 
    214 N.J. 199
    ,
    229 (2013).      We grant planning boards "wide latitude in the
    exercise of delegated discretion" due to "their peculiar knowledge
    of local conditions[.]"     Price v. Himeji, LLC, 
    214 N.J. 263
    , 284,
    (2013) (quoting Kramer v. Bd. of Adjustment for Sea Girt, 
    45 N.J. 268
    , 296 (1965)).
    We give even greater deference to a planning board's decision
    to deny a variance.        Nextel of New York, Inc. v. Borough of
    Englewood Cliffs Bd. of Adjustment, 
    361 N.J. Super. 22
    , 38 (App.
    Div.   2003)   (citing   Northeast    Towers,     Inc.   v.   Zoning   Bd.    of
    Adjustment for W. Paterson, 
    327 N.J. Super. 476
    , 494 (App. Div.
    8                                A-0170-16T4
    2000)); Med. Ctr. at Princeton v. Twp. of Princeton Zoning Bd. of
    Adjustment, 
    343 N.J. Super. 177
    , 199 (App. Div. 2001).             "That
    heavier burden requires the proponent of the denied variance to
    prove that the evidence before the board was 'overwhelmingly in
    favor of the applicant.'"     Nextel of New York, Inc., 
    supra,
     
    361 N.J. Super. at 38
     (quoting Northeast Towers, supra, 327 N.J. Super.
    at 494).
    The scope of judicial review is limited "to determin[ing]
    whether the board could reasonably have reached its decision."
    Davis Enterprises v. Karpf, 
    105 N.J. 476
    , 485 (1987).        Therefore,
    a court generally "will not substitute its judgment for that of a
    board 'even when it is doubtful about the wisdom of the action.'"
    Cell S. of N.J., Inc. v. Zoning Bd. of Adjustment of W. Windsor
    Twp., 
    172 N.J. 75
    , 81 (2002) (quoting Cellular Tel. Co. v. Zoning
    Bd. of Adjustment for Harrington Park, 
    90 F. Supp. 2d 557
    , 563
    (D.N.J. 2000)).     "[C]ourts ordinarily should not disturb the
    discretionary decisions of local boards that are supported by
    substantial   evidence   in   the   record   and   reflect   a   correct
    application of the relevant principles of land use law."         Lang v.
    Zoning Bd. of Adjustment for N. Caldwell, 
    160 N.J. 41
    , 58-59
    (1999).    The Board's conclusions of law, however, are subject to
    de novo review.   Nuckel v. Little Ferry Planning Bd., 
    208 N.J. 95
    ,
    102 (2011).
    9                            A-0170-16T4
    When reviewing a board's decision, we presume its factual
    determinations to be valid, and we will only reverse if the
    decision is arbitrary, capricious, or unreasonable.          Kane Props.,
    supra, 214 N.J. at 229.       That decision must be made on the basis
    of what was before the board and "not on the basis of a trial de
    novo,   by   affidavit   or   otherwise,   before   the   Law   Division."
    Antonelli v. Planning Bd.of Waldwick, 
    79 N.J. Super. 433
    , 440-41
    (App. Div. 1963); Gayatriji v. Borough of Seaside Heights Planning
    Bd., 
    372 N.J. Super. 203
    , 207 (Law Div. 2004).            Matters outside
    the record of proceedings before the Board may not be considered
    by the court.      See Adams v. Delmonte, 
    309 N.J. Super. 572
    , 583
    (App. Div. 1998); Kempner v. Edison, 
    54 N.J. Super. 408
    , 417 (App.
    Div. 1959).
    Walsh applied for a (c)(2) variance from the minimum lot size
    required in an R-3A zone district.         The Municipal Land Use Law
    (MLUL), N.J.S.A. 40:55D-1 to -163, authorizes local zoning and
    planning boards to grant variances from zoning ordinances.           Here,
    the relevant MLUL provision is N.J.S.A. 40:55D-70(c)(2), which
    prescribes in pertinent part:
    [W]here in an application or appeal relating
    to a specific piece of property [it is shown
    that] the purposes of this act . . . would be
    advanced by a deviation from the zoning
    ordinance requirements and the benefits of the
    deviation would substantially outweigh any
    detriment, [the Board may] grant a variance
    10                              A-0170-16T4
    to allow departure from regulations pursuant
    to article 8 of this act; provided, however,
    that the fact that a proposed use is an
    inherently beneficial use shall not be
    dispositive of a decision on a variance under
    this subsection[.]
    "N.J.S.A. 40:55D-70(c)(2) permits a variance for a specific
    property, if the deviation from bulk or dimensional provisions of
    a zoning ordinance would advance the purposes of the zoning plan
    and if the benefit derived from the deviation would substantially
    outweigh any detriment."       Ten Stary Dom P'ship v. Mauro, 
    216 N.J. 16
    , 30 (2013).
    Our courts refer to the balancing of benefit and detriment
    as proving "the positive and negative criteria."            
    Ibid.
     (citing
    Nash v. Bd. of Adjustment of Morris Twp., 
    96 N.J. 97
    , 106 (1984))
    "The applicant bears the burden of proving both the positive and
    negative criteria."       
    Ibid.
    To   qualify   for    a   (c)(2)    variance,   the   applicant   must
    demonstrate that "the purposes of the MLUL would be advanced, the
    variance can be granted without substantial detriment to the public
    good, the benefits of the variance will outweigh any detriment,
    and that the variance will not substantially impair the intent and
    purpose of the zoning plan and ordinance."           Jacoby v. Englewood
    Cliffs Zoning Bd. of Adjustment, 
    442 N.J. Super. 450
    , 471 (App.
    11                             A-0170-16T4
    Div. 2015) (citing Wilson v. Brick Twp. Zoning Bd. of Adjustment,
    
    405 N.J. Super. 189
    , 198 (App. Div. 2009)).
    Importantly, our Supreme Court has emphasized that a (c)(2)
    variance should not be granted when only the purposes of the owner
    will be advanced.    Kaufmann, 
    supra,
     
    110 N.J. at 563
    .         Instead, the
    variance must actually benefit the community by allowing a better
    zoning alternative for the property.        
    Ibid.
         The focus of a (c)(2)
    case, then, is not "on the characteristics of the land that, in
    light of current zoning requirements, create a 'hardship' on the
    owner   warranting     a   relaxation      of   standards,     but   on   the
    characteristics   of   the   land   that    present    an   opportunity   for
    improved zoning and planning that will benefit the community."
    
    Ibid.
    In short, the granting of a "(c)(2) variance will stand if,
    after adequate proofs are presented, the Board concludes that the
    'harms, if any, are substantially outweighed by the benefits.'"
    Jacoby, supra, 442 N.J. Super. at 471 (quoting Kaufmann, 
    supra,
    110 N.J. at 565
    ).
    An application for a bulk variance under subsection (c)(2)
    frequently implicates several purposes of the MLUL,
    including to encourage a municipality to guide
    development in a manner that will promote the
    health, safety, and welfare of its residents,
    N.J.S.A. 40:55D-2(a); . . . and to provide
    "adequate light air, and open space," N.J.S.A.
    12                               A-0170-16T4
    40:55D-2(c).      A   municipality is   also
    authorized to guide development that will
    promote "a desirable visual environment,"
    N.J.S.A.   40:55D-2(i),   and   to establish
    "appropriate population densities," N.J.S.A.
    40:55D-2(e).
    Ten Stary Dom P'ship, supra, 216 N.J. at 30-
    31.
    Site conditions, including the impact of the variance on the
    risk of flooding, storm runoff, traffic congestion, and limited
    available on-street parking, are legitimate concerns when the
    proposed variance implicates those conditions.                See id. at 38
    (concerning drainage and risk of flooding); Kali Bari Temple v.
    Bd. of Adjustment of Twp. of Readington, 
    271 N.J. Super. 241
    , 251
    (App. Div. 1994) (concerning traffic and parking).                     Likewise, a
    subdivision   which   creates   two       lots   harmonious       in    size   with
    neighboring properties may also be a valid consideration.                       See
    Kaufmann, 
    supra,
     
    110 N.J. at 565
    .
    III.
    With   these   standards   in    mind,      we   turn   to    the     Board's
    arguments. The Board raises two main issues for our consideration:
    (1) the trial court reversed the Board based upon an inaccurate
    description of the record regarding surrounding lot sizes and an
    unsupported finding that the current use is non-conforming; and
    (2) the Board was not obligated to grant the variance. Hein raises
    two additional arguments for our consideration: (1) the trial
    13                                    A-0170-16T4
    court erred in allowing the applicant to supplement the record
    with new and unsubstantiated evidence, and by substituting its own
    opinions and judgment for the express findings of the Board in
    denying the variance and subdivision; and (2) existing case law
    does not support the trial court's reversal of the Board's decision
    to deny the variance application.
    The Board found that Walsh failed to meet the positive
    criteria of the statute.   Departing from that finding, the judge
    found that "Walsh's proposed subdivision will eliminate a non-
    conforming use and structure while creating only a [de minimis]
    (4%) deviation from the minimum lot area requirement."      The judge
    concluded that the proposed subdivision satisfied the positive
    criteria for a (c)(2) variance "by creating more harmonious lot
    sizes and eliminating a non-conforming use and structure."           We
    disagree.
    As the court noted in Kaufmann, "no c(2) variance should be
    granted when merely the purposes of the owner will be advanced."
    
    110 N.J. at 563
    .   Rather "[t]he grant of approval must actually
    benefit the community in that it represents a better zoning
    alternative for the property."        
    Ibid.
       Here, the board had an
    ample basis to conclude that the benefits claimed by Walsh are
    insubstantial or non-existent.        The Board reasonably determined
    that the construction of two new homes on a narrow street would
    14                           A-0170-16T4
    not result in a more harmonious condition in the neighborhood and
    would be contrary to the master plan.
    The judge found that Walsh satisfied the positive criteria,
    in part, because the proposed subdivision would eliminate a non-
    conforming use in the form of a guest house.       In reaching that
    conclusion the judge stated:   "Walsh's home sits side-by-side with
    a guest home and garage."    The judge further stated that Walsh's
    expert, Noon, opined that the proposed lots "would eliminate the
    separate guest house which is a non-conforming use[.]"      Although
    Walsh made such arguments to the judge, the record before the
    Board does not support them.    The record contains only a single
    fleeting reference to a guest house, which appears to have stemmed
    from that term being used on one of the applicant's submissions,
    rather than by competent evidence presented to the Board.    Walsh's
    expert did not even mention the guest house.         The record is
    otherwise devoid of any reference to a non-conforming guest house
    or its elimination.   Thus, a fact central to the court's decision
    had never been properly developed on the record before the Board,
    which became the record before the Law Division.
    We also part company with the judge's rejection of the Board's
    finding that Walsh's application failed to meet the negative
    criteria of the statute.    "The requirement that the grant of the
    variance not 'substantially impair the intent and purpose of the
    15                           A-0170-16T4
    zone plan and zoning ordinance' focuses on whether the grant of
    the variance can be reconciled with the zoning restriction from
    which the applicant intends to deviate."            Lang, supra, 160 N.J.
    at 57 (quoting Medici v. BPR Co., 
    107 N.J. 1
    , 21 (1987)).                    In
    Lang, the Supreme noted that "reconciliation of a dimensional
    variance with the zone plan and zoning ordinance is a relatively
    uncomplicated issue, and depends on whether the grounds offered
    to support the variance, either under subsection c(1) or c(2),
    adequately justify the board's action in granting an exception
    from the ordinance's requirements."          
    Ibid. at 57-58
    .
    The Board rejected plaintiff's contention that granting its
    application   for   a   variance   would     not   result   in   "substantial
    detriment to the public good and will not substantially impair the
    intent and the purpose of the zone plan and zoning ordinance."
    N.J.S.A. 40:55D-70.     In overturning that finding, the trial judge
    found that proposed subdivision would create only a de minimis
    four percent deviation from the minimum lot area requirement.                On
    this point, we again conclude that the judge should have accorded
    the Board more deference.
    In   attempting    to   negate    the    Board's   concern     that   the
    subdivision of her property would result in a substantial detriment
    to the surrounding properties, plaintiff notes that the proposed
    subdivided lots would deviate no more than four percent from the
    16                              A-0170-16T4
    minimum lot size requirement.    While that may be so, the Board did
    not act arbitrarily or capriciously in finding these deviations
    to be significant nonetheless.     If viewed in a different numeric
    manner, each proposed lot would be 250 square feet below the
    minimum size.    The Board was not obligated to treat that shortfall
    as negligible.
    Walsh also emphasizes that several other nearby lots are
    smaller than 6250 square feet.    The Board was entitled to consider
    the cumulative negative impact of creating additional undersized
    lots on the neighborhood in light of the master plan's goal of
    controlling population density.
    We are satisfied that the Board's decision to deny the
    variance was not arbitrary, capricious or unreasonable and was
    supported by substantial evidence in the record.    The proofs here
    demonstrate that the variance would advance the purposes of the
    owner rather than the community.      Walsh did not meet her burden
    of demonstrating that the community will benefit due to improved
    zoning if the variance is granted.    See Loscalzo v. Pini, 
    228 N.J. Super. 291
    , 304 (App. Div. 1988), certif. denied, 
    118 N.J. 216
    (1989).
    In sum, the Board did not act arbitrarily in reaching its
    considered assessment that Walsh's variance application did not
    fit within the "very narrow band of cases" in which a (c)(2)
    17                          A-0170-16T4
    variance is warranted. Kaufmann, 
    supra,
     
    110 N.J. at 560
    . Adhering
    to our limited scope of review, we conclude the Board could have
    reasonably reached its decision on the competent evidence before
    it.   Davis Entrs., supra, 
    105 N.J. at 485
    .   We therefore reverse
    the Law Division's decision and reinstate the      denial of the
    variance by the Board.
    Reversed.
    18                          A-0170-16T4