John E. Myers, Trustee, and Diane D. Myers, Trustee v. Ocean , 439 N.J. Super. 96 ( 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  •                   NOT FOR PUBLICATION WITHOUT THE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-2568-13T2
    JOHN E. MYERS, TRUSTEE, and
    DIANE D. MYERS, TRUSTEE,
    APPROVED FOR PUBLICATION
    Plaintiffs-Respondents,
    January 16, 2015
    v.
    APPELLATE DIVISION
    OCEAN CITY ZONING BOARD OF
    ADJUSTMENT,
    Defendant-Respondent,
    and
    CITY OF OCEAN CITY,
    Defendant-Appellant.
    ______________________________
    Argued September 16, 2014 – Decided January 16, 2015
    Before Judges Messano, Ostrer and Sumners.
    On appeal from the Superior Court of New
    Jersey, Law Division, Cape May County,
    Docket No. L-381-11.
    Dorothy F. McCrosson argued the cause for
    appellant   (McCrosson   &   Stanton,   P.C.,
    attorneys; Ms. McCrosson, on the briefs).
    William R. Serber argued the cause for
    respondents John E. Myers and Diane D.
    Myers,   Trustees  (Serber  Konschak,  LLP,
    attorneys; Mr. Serber, of counsel; James E.
    Moore, on the brief).
    The opinion of the court was delivered by
    OSTRER, J.A.D.
    On leave granted, the City of Ocean City appeals from the
    trial court's order compelling it to respond to a proposed zoning
    change recommended by the Ocean City Planning Board in its master
    plan reexamination report.          Construing N.J.S.A. 40:55D-62(a), the
    trial     court    concluded    that      a       governing      body       must    adopt    an
    ordinance consistent with a change proposed in a reexamination
    report,     or    the   governing   body          must    affirmatively            reject   the
    change after a hearing.         We agree with the City that the statute
    does not require a governing body to affirmatively act in response
    to   a    master    plan   recommendation,               so    long    as     the    existing
    ordinance     is   substantially       consistent             with    the    master    plan's
    land use and housing plan elements.                   We therefore reverse.
    I.
    The material facts are undisputed.                    At issue is a proposed
    zoning change affecting the status of six residential properties
    in Ocean City's Beach and Dune Zone (B&D Zone).                             The proposal is
    the third of twelve master plan amendments recommended in the
    Planning     Board's     October    17,       2012,      Master       Plan    Reexamination
    Report (2012 Report).          According to the 2012 Report, residential
    and commercial uses were prohibited in the B&D Zone, which has
    existed since 1988.         The only permitted uses pertained to beach
    and water recreation, flood prevention, and the maintenance of
    open space.        Consequently, the six residences, which pre-dated
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    the zone's creation, became non-conforming uses and structures.
    The Planning Board noted that the owners were thereby prohibited
    from expanding their homes, or rebuilding them in the event of a
    destructive storm, unless they obtained a use variance.                      The
    Planning     Board   proposed    to   deem    the   residential   properties
    conditional uses, and recommended several conditions designed to
    assure that the residences did not interfere with the flood
    preventative functions of the zone.
    The City adopted several ordinances in 2012 and 2013 to
    implement various changes proposed in the 2012 Report unrelated
    to the B&D Zone.         Prior to final adoption of these ordinances,
    the   City    obtained    the   Planning     Board's    consistency   review,
    pursuant     to   N.J.S.A.   40:55D-64.      However,    the   City   took    no
    action specifically regarding the proposed B&D Zone change.
    Plaintiffs John E. and Diane D. Myers own two of the six
    affected residences — 19 and 21 Beach Road — which lie between the
    road and ocean.          They purchased the homes in 2010 and 2009,
    respectively, when the homes were already deemed non-conforming
    uses. In 2011, they sought a variance from the Ocean City Zoning
    Board of Adjustment to enable them to expand the residence at 19
    Beach Road.       Plaintiffs sought to add a 302-square-foot deck,
    construct roofs over existing decks, and construct four dormer
    additions providing 120 square feet of head room.
    3                              A-2568-13T2
    The Zoning Board denied the variance in May 2011.                  Among
    other reasons, it found that expanding and extending the useful
    life of a non-conforming structure would violate the purposes of
    the B&D Zone.      In 2011, plaintiffs filed an action in lieu of
    prerogative writ against the Zoning Board and the City.
    Relevant to this appeal is an amended count of plaintiffs'
    complaint, which they sought to file after the Planning Board
    issued the 2012 Report.      In the new count, plaintiffs requested
    an order compelling the City to adopt the B&D Zone change, or to
    endorse,   affirmatively,    maintenance       of     the   zoning   ordinance
    notwithstanding    the   proposed      change.        The   court    thereafter
    granted plaintiffs the requested relief.1
    By order entered December 6, 2013, the court required the
    City to:    "[a]mend the zoning ordinance to conform with 'Master
    Plan   Amendment   #3:   Beach   and   Dune'     in   the   master    plan   re-
    examination report[,]" or "[h]old a hearing as required under
    1
    The procedural setting of the court's determination on the
    merits is unclear. The only formal motion before the court was
    plaintiffs' motion to amend their complaint.    The City opposed
    the motion on the ground the amendment lacked merit.        Oral
    argument on the motion to amend pertained to the substantive
    merits of the proposed cause of action. The court acknowledged
    that if the amendment were granted, the City would thereafter
    move to dismiss, renewing the arguments it presented in opposing
    the motion to amend. In a written decision issued several weeks
    after oral argument, the court both granted the motion to amend,
    and determined the merits of the added cause of action. It is
    uncertain from the record whether the parties, after oral
    argument, separately consented to a decision on the merits.
    4                               A-2568-13T2
    N.J.S.A. 40:55D-62(a) to permit the zoning ordinance to remain
    inconsistent with the master plan."              The court required the City
    to comply within ninety-five days.                 We thereafter granted the
    City's motion for leave to appeal.               The trial court then entered
    a stay of its order with the parties' consent.
    II.
    At     issue   is    the   meaning    of     N.J.S.A.    40:55D-62(a).        We
    review de novo the trial court's interpretation.                      See Perez v.
    Zagami, LLC, 
    218 N.J. 202
    , 209 (2014) (stating that an issue of
    statutory    construction      is   a    legal    issue     subject   to   de   novo
    review); Manalapan Realty, L.P. v. Twp. Comm. of Manalapan, 
    140 N.J. 366
    , 378 (1995) ("A trial court's interpretation of the law
    and the legal consequences that flow from established facts are
    not entitled to any special deference.").
    The principles governing statutory interpretation are well-
    settled.        Our     goal   is   to    determine        and   effectuate      the
    Legislature's intent.          See, e.g., In re Kollman, 
    210 N.J. 557
    ,
    568 (2012).      We begin with the statutory language.                 
    Ibid. "We ascribe to
      the     statutory   words      their      ordinary    meaning    and
    significance, and read them in context with related provisions
    so as to give sense to the legislation as a whole."                     DiProspero
    v. Penn, 
    183 N.J. 477
    , 492 (2005) (citations omitted); see also
    Wilson ex rel. Manzano v. City of Jersey City, 
    209 N.J. 558
    , 572
    5                                A-2568-13T2
    (2012)    (stating   that    a   provision     "should     not   be   read    in
    isolation, but in relation to other constituent parts so that a
    sensible meaning may be given to the whole of the legislative
    scheme").    If the language is clear, our task is complete; if it
    is not, we may turn to extrinsic evidence.               
    Kollman, supra
    , 210
    N.J. at 568.
    The     provision   in   dispute       addresses   a   governing    body's
    authority to adopt a zoning ordinance, and its conformity with
    the municipality's master plan:
    The governing body may adopt or amend a
    zoning ordinance relating to the nature and
    extent of the uses of land and of buildings
    and structures thereon.         Such ordinance
    shall be adopted after the planning board
    has adopted the land use plan element and
    the housing plan element of a master plan,
    and all of the provisions of such zoning
    ordinance or any amendment or revision
    thereto   shall   either    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; provided that the governing body
    may adopt a zoning ordinance or amendment or
    revision thereto which in whole or part is
    inconsistent   with   or   not    designed   to
    effectuate the land use plan element and the
    housing   plan    element,     but    only   by
    affirmative vote of a majority of the full
    authorized membership of the governing body,
    with the reasons of the governing body for
    so acting set forth in a resolution and
    recorded in its minutes when adopting such a
    zoning ordinance; and provided further that,
    notwithstanding   anything     aforesaid,   the
    governing body may adopt an interim zoning
    ordinance pursuant to subsection b. of
    6                               A-2568-13T2
    section 77 of         P.L.1975,            c.    291    [N.J.S.A.
    40:55D-90].
    [N.J.S.A. 40:55D-62(a).]
    We agree with the City that nothing in the plain language
    of section 62(a) requires a governing body to affirmatively act
    in response to a reexamination report.                                Rather, the statute
    imposes conditions upon a governing body when it decides to act.
    The first sentence of the provision makes it clear that adoption
    of an ordinance or an amendment is permissive.                                "The governing
    body may adopt or amend a zoning ordinance."                              
    Ibid. (emphasis added). The
    use of the word "may" generally conveys that an
    action is permissive, not mandatory.                           See, e.g., Harvey v. Bd.
    of Chosen Freeholders, 
    30 N.J. 381
    , 391 (1959) (stating that,
    absent        legislative   intent         to       the    contrary,          use   of   "may"
    indicates that a provision is permissive, and use of "shall" or
    "must" reflects that a provision is mandatory).
    If   the   governing       body    chooses            to     adopt    or   amend   an
    ordinance, it must do so only after adoption of a master plan.
    That is the import of the command in the second sentence that
    "[s]uch ordinance shall be adopted after the planning board has
    adopted the land use plan element and the housing plan element
    of   a    master    plan.   .   .    ."         N.J.S.A.         40:55D-62(a)       (emphasis
    added).        Furthermore, if the governing body decides to adopt or
    amend an ordinance, then — subject to a proviso — "all of the
    7                                    A-2568-13T2
    provisions of such zoning ordinance or any amendment or revision
    thereto shall . . . be substantially consistent" with the master
    plan's      land    use   and   housing    plan       elements,     or   "designed     to
    effectuate such plan elements."                
    Ibid. (emphasis added). The
    proviso allows the governing body to adopt an ordinance
    that   is    inconsistent       with     those    master     plan    elements.        The
    governing body "may adopt" such an ordinance if it does so by
    majority vote of the governing body's full authorized membership
    "with the reasons . . . for so acting set forth in a resolution
    and recorded in its minutes . . . ."                  
    Ibid. (emphasis added). Under
    the statutory scheme requiring reexamination of the
    master      plan,     a     pre-existing       zoning      ordinance      may    become
    inconsistent         with     one   aspect       of    a   reexamination        report.
    However, the statute does not expressly require action.                                It
    requires a majority vote and a statement of reasons only if the
    governing body thereafter adopts an inconsistent ordinance or
    amendment.          In other words, only when a governing body acts
    affirmatively to adopt a zoning ordinance or amendment that is
    inconsistent with the then-existing master plan is the majority
    vote and statement of reasons requirement triggered.
    We    find    no     basis   in   the     statute's    plain      language     for
    plaintiffs' contention that a governing body must affirmatively
    provide reasons for its inaction.                     "The plain language of the
    8                                    A-2568-13T2
    statute     does   not   require      the      governing      body    to     justify      the
    inconsistency by majority vote and a statement of reasons where
    the   governing     body      has   not   affirmatively            changed    the    zoning
    ordinance by adoption, amendment or revision."                          Victor Recchia
    Residential Constr., Inc. v. Zoning Bd. of Adjustment of Cedar
    Grove, 
    338 N.J. Super. 242
    , 250-51 n.3 (App. Div. 2001);2 see
    also Cox & Koenig, N.J. Zoning & Land Use Administration, § 34-
    2.2   at    776    (2014)     ("There     is    no    clear    statutory       provision
    dealing with the failure of the governing body to amend or adopt
    ordinances in response to significant changes in a new Master
    Plan or re-examination report that require such amendment or
    adoption.").
    We do not endorse Cox & Koenig's subsequent comment, "It
    would      seem   that   an    unreasonable          delay    in    adopting    such       an
    ordinance change or in adopting a resolution stating the reasons
    2
    The trial court deemed this statement to be dictum, and opined
    it was therefore not bound by it. We disagree it was dictum, as
    it was germane to the primary issue in the case — whether the
    municipality's zoning ordinance was substantially consistent
    with the master plan.    See State v. Rose, 
    206 N.J. 141
    , 183
    (2011) (stating that "matters in the opinion of a higher court
    which are not decisive of the primary issue presented but which
    are germane to that issue . . . are not dicta, but binding
    decisions of the court") (internal quotation marks and citation
    omitted). In any event, dictum is intended to provide guidance
    to courts that may address an issue in the future. Just as we
    are bound by "carefully considered dictum from the Supreme
    Court," State v. Breitweiser, 
    373 N.J. Super. 271
    , 283 (App.
    Div. 2004), certif. denied, 182, N.J. 628 (2005), a trial court
    should be bound by similar pronouncements by our court.
    9                                       A-2568-13T2
    for   not   doing    so       should    create,      at   some     point       in    time,    a
    presumption that the ordinance is invalid."                         
    Ibid. We find no
    basis in the statute or the Legislature's intent to reverse the
    usual presumption of validity of municipal zoning ordinances.
    See Riggs v. Twp. of Long Beach, 
    109 N.J. 601
    , 610-11 (1988);
    Victor 
    Recchia, supra
    , 338 N.J. Super. at 249.                                 However, as
    discussed    below,       a    governing      body's      inaction       may   render      its
    zoning ordinance susceptible to a general challenge that it is
    substantially inconsistent with the master plan, and therefore
    invalid.
    The   trial    court's          order   contemplates         that   the       governing
    body adopt one of two alternatives:                    amend its zoning ordinance
    to conform to the master plan's proposed B&D Zone change; or
    endorse the status quo with a statement of reasons adopted by a
    required majority vote.                However, the statute simply does not
    require a governing body to endorse the status quo preceding a
    master plan revision.            The statute ties the adoption of reasons
    to the adoption of an ordinance.                      "Plainly read, the statute
    requires that the reasons for inconsistency be established when
    the inconsistent ordinance is adopted."                      E. Mill Assocs. v. Twp.
    Council of E. Brunswick, 
    241 N.J. Super. 403
    , 407 (App. Div.
    1990).      In   East         Mill,    we     held   that     a    resolution         adopted
    approximately       one       month    after       passage    of    an    ordinance        was
    10                                     A-2568-13T2
    insufficient,    because        the    resolution    was   not   contemporaneous
    with passage of the ordinance.            
    Id. at 406-07.
    If the Legislature had intended to require a governing body
    to respond to a master plan change, it presumably would have
    imposed deadlines for such action, as it has in so many other
    instances in the Municipal Land Use Act (MLUL), N.J.S.A. 40:55D-
    1 to -163.     See, e.g., N.J.S.A. 40:55D-17(c) (noting that if the
    governing body fails to hold a hearing and render a decision in
    an appeal of a zoning board decision within ninety-five days,
    the   decision   will    be     deemed    affirmed);   N.J.S.A.     40:55D-26(a)
    (stating that failure of the planning board to transmit its
    consistency report to the governing body within thirty-five days
    relieves the governing body from certain requirements under the
    subsection).     Instead, the Legislature imposed conditions if the
    governing    body       chose     to     act:   by     requiring     substantial
    consistency of zoning amendments; or approval by a majority of
    the full membership of amendments that are inconsistent with the
    plan, along with a statement of reasons.
    We recognize the important role of planning in the MLUL.
    See 
    Riggs, supra
    , 109 N.J. at 618-22 (Handler, J., concurring);
    Willoughby v. Wolfson Grp., Inc., 
    332 N.J. Super. 223
    , 229 (App.
    Div.) ("It is apparent that the MLUL gives the master plan a
    central role in a municipality's decisions regarding the use and
    11                            A-2568-13T2
    development        of    the     land      within          its    jurisdiction."),         certif.
    denied, 
    165 N.J. 603
    (2000).                     The role is implemented in part by
    the   mandated          reference         of    proposed          zoning      ordinances        to   a
    planning      board,       and      the    consistency            requirement          embodied      in
    section 62(a).            See Riya Finnegan LLC v. Twp. Council of S.
    Brunswick, 
    197 N.J. 184
    , 192 (2008) ("Although the Master Plan
    itself has no independent force, the requirement that the zoning
    ordinance      be       'substantially           consistent'            with      it    connotes      a
    recognition         by      our       Legislature                of     the       importance         of
    comprehensive planning.").
    Nonetheless, the MLUL does not mandate absolute consistency
    between a zoning ordinance and a master plan.                                 "[T]he concept of
    'substantially consistent' permits some inconsistency, provided
    it does not substantially or materially undermine or distort the
    basic provisions and objectives of the Master Plan."                                    
    Manalapan, supra
    ,       140    N.J.       at    384.             Moreover,         a     governing      body's
    determination that its ordinance is substantially consistent is
    entitled      to    great      weight          and    deference.            
    Id. at 383.
           In
    Manalapan, the Court deferred to a governing body's judgment
    that a zoning ordinance that banned a Home Depot and stores like
    it    from    a     particular        zone           was    not       inconsistent       with     the
    municipality's master plan.                    
    Ibid. 12 A-2568-13T2 Our
        reading      of    section       62(a)      does   not    undermine        the
    Legislature's broader purpose in the MLUL to advance the role of
    planning.        Nor does it render a master plan reexamination a
    nullity.    If a governing body chooses not to act in the wake of
    a master plan revision, it does so at its peril; its zoning
    ordinance    must      nonetheless         remain    "substantially         consistent"
    with the master plan.             An ordinance may survive although it
    falls    short    of    that    standard         only   if     it    is   approved       in
    conformity with section 62(a) — that is, adoption by majority
    vote of the full membership, and a statement of reasons.
    In     Victor      Recchia,      the    plaintiff     asserted        that   a   pre-
    existing ordinance was rendered invalid because it had become
    inconsistent with the new master plan.                    Victor 
    Recchia, supra
    ,
    338 N.J. Super. at 245, 248-49.                  We affirmed the trial court's
    determination       that       the     ordinance         remained         substantially
    consistent with the master plan.                 
    Id. at 252.
            In so doing, we
    recognized that if the inconsistency between the prior ordinance
    and new plan were more dramatic, then the ordinance would have
    been rendered invalid.          
    Id. at 250-51.
    Here, an existing zoning ordinance was in
    effect when a new master plan was adopted in
    1991. The governing body did not change the
    zoning ordinance to reflect the new land use
    element.     This caused an inconsistency
    between the master plan and the ordinance
    with respect to the split lots in the area
    involved in this litigation.     Hence, the
    13                                   A-2568-13T2
    question   is       whether   the  ordinance is
    substantially       consistent with the master
    plan.
    [Ibid.]
    As noted above, we went on to address the precise statutory
    interpretation     presented     by    plaintiffs,   and    found     that    the
    statute's plain language did not "require the governing body to
    justify the inconsistency" resulting from its inaction in the
    face of a revised master plan.           
    Id. at 250-51
    n.3.
    We therefore reverse the trial court's order compelling the
    governing body to adopt an amendment to the zoning ordinance to
    conform   with   the   proposed   B&D     Zone   change,   or   to    conduct    a
    hearing at which it would affirmatively reject the change.                      We
    do so without prejudice to any claim by plaintiffs that the
    City's    zoning     ordinance    is      invalid    because     it     is    not
    substantially consistent with the master plan, in light of the
    failure to adopt the B&D Zone change, and any other remaining
    but unadopted changes proposed in the 2012 Report.
    Reversed and remanded.            We do not retain jurisdiction.
    14                              A-2568-13T2