Citation Numbers: 201 N.J. Super. 105, 492 A.2d 1034, 1985 N.J. Super. LEXIS 1277
Judges: Petrella
Filed Date: 5/9/1985
Status: Precedential
Modified Date: 11/11/2024
The opinion of the court was delivered by
These consolidated appeals involve challenges by the planning boards of the Townships of Egg Harbor (Egg Harbor) and Hamilton (Hamilton) to the action of the New Jersey Pinelands Commission (Commission) denying them standing and an opportunity to be heard or to object to development approvals granted by the Commission’s staff in their respective communities. We hold that the planning boards have standing under the statute and that notice and hearings are required. We reverse and remand for public hearings with respect to the development plans.
I.
Before describing the underlying factual complex in this case it is appropriate to review the statutory framework within which these appeals arise. In 1978 the federal government established the “Pinelands National Reserve” of approximately 1,000,000 acres under The National Parks and Recreation Act of 1978. 16 U.S.C.A. § 471i. The first stated congressional purpose of this legislation was “to protect, preserve and enhance the significant values of the land and water resources of the Pinelands area.” 16 U.S. C.A. § 471i(b)(l). Congress found
Congress requested that New Jersey establish a planning entity which would be responsible for developing the CMP. Id. at § 471i(d). The CMP was required to include, among other things, “A program to provide for the maximum feasible local government and public participation in the management of the Pinelands National Reserve.” Id. at § 471i(f)(7). Failure to conform to federal requirements for the management of the area or in the modification of an approved plan can result in funding losses and a federal claim for reimbursement. See Id. at § 471i(g).
On February 8, 1979 Governor Byrne issued Executive Order 71, pending preparation of the CMP. The order created a planning entity and imposed a development moratorium in the area defined as the Pinelands. Thereafter, the Pinelands Protection Act, N.J.S.A. 13:18A-1, et seq. (sometimes the Act), became effective on June 28, 1979. That Act created the Pinelands Commission and directed it to prepare a CMP for the Pinelands area and to impose a moratorium on all building therein except where development applications were reviewed and approved by the Commission pending completion of the CMP. N.J.S.A. 13:18A-4, -8 and -14. The purposes of the
The Act requires the CMP to include minimum land use standards, maximum population densities and provide for the regulation or prohibition of various uses for specific portions of the Pinelands area. N.J.S.A. 13:18A-8 i(l). It also provides that subsequent to adoption of the CMP no development application could be approved unless it conformed to the CMP or unless the Commission decided to waive strict compliance with the CMP. Id. at 13:18A-10 c. Under N.J.S.A. 13:18A-12 a and b it was contemplated that within one year of adoption of the CMP each county and municipality in the Pinelands area would submit a revised master plan and local land use ordinance to the Commission for review. Approval of the revised plans and ordinances is made contingent upon their being in conformity with the minimum standards of the CMP.
N.J.S.A. 13:18A-12 c and d provide for the consequences of the failure of a municipality to adopt or enforce a new master plan and land use ordinance in conformity with the CMP. Those subsections read:
c. In the event that any county or municipality fails to adopt or enforce an approved revised master plan or implementing land use ordinances, as the case may be, including any condition thereto imposed by the commission, the commission shall adopt and enforce such rules and regulations as may be necessary to implement the minimum standards contained in the comprehensive management plan as applicable to any such county or municipality.
*111 d. Any approval of any application for development granted by any municipality, county or agency thereof in violation of the provisions of this section shall be null and void and of no force and effect at law or equity.
N.J.S.A. 13:18A-12 c and d thus treat differently those municipalities which have not adopted an approved master plan or land use ordinance, or by inference those which have not succeeded in having them approved by the Commission. The Commission has adopted regulations which expand the statute. The CMP, actually adopted as the regulations in N.J.A.C. 7:50-1, et seq., defines a “certified municipal master plan or land use ordinance” as “any municipal master plan or land use ordinance certified by the Commission pursuant to N.J.A.C. 7:50-3, Part IV as being in conformance with the minimum standards of this Plan.” N.J.A.C. 7:50-2.11. Under the CMP all municipalities with “uncertified” land use ordinances and master plans are prohibited from approving or rejecting development proposals. Instead, the Commission asserts exclusive authority to determine whether the proposed development is in conformance with the minimum standards of the CMP. Id. at 7:50-4.11 and 7:50-4.13. All municipalities with “certified” land use ordinances and master plans, by contrast, may pass directly on any development proposal sought to be located in whole or in part within the municipality. See id. at 7:50-4:21 to 7:50-4:33; see also N.J.S.A. 13:18A-14. The Commission is authorized to review (apparently at its discretion) any municipal approval of any application for development in the Pinelands area. N.J. S.A. 13:18A-15; N.J.A.C. 7:50-4:21 to 7:50-4:33.
With this general discussion of the relevant statutory framework, we turn now to the factual setting of these appeals and the contentions of the parties.
II.
Both Egg Harbor and Hamilton are sometimes referred to as “uncertified” municipalities because their master plans and land-use ordinances have not been approved by the Commis
The assistant director of the Commission, William Harrison, on February 17, 1984 approved
The approval document recited that most of the fresh-water wetlands located on and adjacent to the parcel were undisturbed and that the developers were required to maintain a 300 foot buffer between them. Williams found, without providing specific details, that a small portion of wetlands previously affected by existing development would not be further disturbed if development were located at least 100 feet from it. Notwithstanding the fact that the developers proposed road and utility crossings of the wetlands, the assistant director also found that “[t]he applicant has demonstrated that there is no feasible alternative route that ... will have a lesser impact” and that this would not cause a significant adverse impact. Williams likewise found that the proposed storm water drainage system from the proposed extensive development of this approximately 530 acres would result in no increase in volume or rate of storm water runoff from the parcel after completion of the proposed development in the event of a storm of the severity of a 50-year, 24-hour storm.
After further finding in general fashion that the proposal complied with the CMP’s housing requirements, Williams concluded that the proposed PUD was a permitted use in a Regional Growth Area
We do not know how or based on what documents or evidence the assistant director’s “findings” were made because we are unaware of any record with regard to the approval. These “findings,” which were recited in a little more than one typewritten page, were presumably based on staff review of the papers submitted on the developers’ application.
N.J.A.C. 7:50-4.15 apparently attempts to make the executive director’s approval final in many instances, notwithstanding the statutory requirements of N.J.S.A. 13.T8A-14 f (see infra n. 9), unless “reconsideration” is sought under N.J.A.C. 7:50-4.17, which provides:
Any interested person who is aggrieved by any determination made by the Executive Director pursuant to this Part may seek reconsideration of such determination as provided by N.J.A.C. 7:50-4.81.
Apparently no public hearing was conducted or was contemplated on the developers’ application as far as we can determine. See N.J.S.A. 13:18A-15. Nor does the sparse record before us indicate that there had been any notice to the public at any stage of the matter or that the Commission made a final determination with respect to the subject development. See N.J.S.A. 13:18A-14 f, -15, -20.
Requests for “reconsideration” of the development approval were filed by Hamilton and Egg Harbor on March 6 and March 12, 1984, respectively. Hamilton contended that the assistant director’s February 17, 1984 development approval was not consistent with the Pinelands Protection Act and the CMP because, contrary to the assistant director’s findings of fact, there were no existing public sewers, thus potentially endanger
Egg Harbor asserted that the wetlands located on the development site would be adversely impacted because of the lack of a proper sewerage system, that the assistant director’s failure to specify in the development approval the acreage and number of dwelling units to be developed within Egg Harbor made it impossible to determine whether the application complied with the intensity of dwelling units permitted by the CMP; that in portions of the property covered by the approval the water table did not meet the standards provided for in the CMP; that the development failed to provide for proper on-site waste management as required by the CMP, and that there was no provision for the minimum middle-income housing required by the CMP.
At the time the planning boards each filed their “Request for Reconsideration,” resolution 83-101, which had been adopted by the Commission on November 4, 1983, permitted “uncertified” municipalities such as Egg Harbor and Hamilton to seek Commission reconsideration of certain staff decisions. Accordingly, when Hamilton and Egg Harbor sought reconsideration, their requests were forwarded by the Commission’s staff to the Office of Administrative Law (OAL) for hearings as contested cases. That resolution had provided that requests for reconsideration of staff actions by uncertified municipalities would not be deemed contested cases requiring a hearing “unless the uncertified municipality ... has specifically identified aspects
In response, the Commission adopted resolution 84-20 on April 6, 1984 in which it declared that “an uncertified municipality can effectively thwart the goals of the Pinelands Protection Act and the Comprehensive Management Plan by requesting hearings before the Office of Administrative Law.” The Commission did not state how the action of Hamilton or Egg Harbor or any other municipality would thwart the primary goals of the Pinelands Protection Act as they are set forth in N.J.S.A. 13:18A-2. The Commission concluded that uncertified municipalities had violated the Pinelands Protection Act by not revising their master plans and land-use ordinances to conform with the provisions in the CMP and thus “cannot legitimately claim an interest in insuring that staff decisions on applications are consistent with the Plan.”
[Uncertified municipalities and any agency thereof are not entitled to request reconsideration of staff decisions and that no such request for reconsideration shall be referred to the Office of Administrative Law and any matter presently pending before to [sic] Office of Administrative Law shall be withdrawn unless an administrative hearing has already been held.
On April 13, 1984 the assistant director of the Commission wrote to the OAL enclosing a copy of resolution 84-20 and directing that the challenges by Hamilton and Egg Harbor Planning Boards be returned by the OAL to the Commission.
It is from that action that Hamilton and Egg Harbor filed notices of appeal challenging the Commission’s determination that they were not entitled to request reconsideration of staff decisions and the determination that no such request shall be referred to the OAL as a contested ease. The Commission was by that action presumably attempting to preclude applicability of N.J.S.A. 52:14B-2(b) and -10 of the Administrative Procedure Act. Essentially the Commission concluded that uncerti
The central issues presented on this appeal are: (1) whether the planning boards of municipalities whose master plans and land use ordinances have not been approved by the Commission (sometimes referred to as “uncertified” municipalities) have standing to be heard or to challenge development approvals by the Commission or its staff, and (2) whether such municipalities are entitled to a hearing prior to final development approval of projects located within their borders. Appellants also raise the issue of whether the Commission should be estopped from denying “uncertified” municipalities access to the administrative hearing process. In light of our determination that appellants are entitled to a hearing we need not decide that issue.
Because of the State’s policy regarding the Pinelands area and the thrust of the statutes, we are compelled to address what we view as a serious flaw in the Pinelands Protection Act and the CMP, that is, they fail to provide the public with an opportunity for hearing prior to final development approval.
Both planning boards argue that they have standing to raise challenges in quasi -judicial administrative proceedings to development approvals by the Commission’s staff.
Egg Harbor points out that N.J.A.C. 7:50-4.17 provides any “interested person” the right to seek “reconsideration” and that 7:50-4.2(b) requires developers to notify township and county clerks, as well as any applicable municipal environmental commission, see N.J.S.A. 40:56A-1, et seq., of their applications. It contends that it “would be onerous and unjust” to construe the term “interested person” in N.J.A.C. 7:50-2.11 and N.J.A.C. 7:50-4.17 (and presumably the term “interested parties” in N.J.S.A. 52:14B-8) as not including municipal agencies in Pine-lands area municipalities wherein the zoning ordinances have not yet been approved by the Commission, particularly where the Commission’s action on a development application “impinges on and interacts with the municipal agency’s sphere of responsibility.” Egg Harbor argues that in the past the Commission had provided planning boards of uncertified municipalities with notice of development applications and afforded them an opportunity to request reconsideration of staff decisions on such applications. It thus contends that the past procedure should be reinstated.
The developer and the Commission rely on Bergen County v. Port of New York Authority, 32 N.J. 303, 311-315 (1960) as supporting the proposition that governmental agencies (other than the Governor and the Attorney General) have no right independent of the general public to challenge the actions of the Commission. (The Public Advocate would appear to be another exception to that proposition.) Hamilton Township concedes that that case held-that a county could not challenge the actions of a governmental entity. The Township, however, distin
The developers argue that the Commission has discretionary authority to amend its rules regarding reconsideration rights afforded “uncertified” municipalities in order to implement the CMP in those municipalities.
III.
A.
We now address respondent’s contention that municipalities without approved zoning ordinances, the so-called uncerti
The Supreme Court affirmed on direct certification. It interpreted the county’s complaint as an attempt “to vindicate the general public interest upon an allegation that another agency of government, the Port Authority, is exceeding its statutory powers.” Id. at 311. The court held that a taxpayer, and a representative of the public would have standing to sue under such circumstances, but that a county could not “assume the role of defender of the public interest.”
Furthermore, the court in Bergen County was aware that it was not establishing an inflexible rule when it said:
It is difficult to foresee all eventualities. It may be that situations will arise in which despite the absence of an intrusion upon the property or political powers of a county or municipality, it may appropriately speak with respect to some hurt experienced generally by its inhabitants. We need not and do not foreclose that possibility. [Id. at 315-316.]
Even assuming that appellants’ actions could be characterized as an attempt to vindicate the general public interest, we nevertheless view the instant case as presenting one of those exceptional situations contemplated by the above language. It is clear from the Pinelands Protection Act that protection of the sensitive lands and resources in the Pinelands area is a paramount objective, and that development in these areas is to be the exception, not the rule. See N.J.S.A. 13:18A-1 to -2; see also N.J.S.A. 13:18A-9; Senate Energy and Environment Committee Statement to Senate Bill 3091, which was enacted as L.
Respondents, also rely on our decision in Dover Twp. v. Dover Twp. Bd. of Adjustment, 158 N.J.Super. 401 (App.Div. 1978). We there noted that an “abrogation of authority” is a distinct matter not barred from challenge by another public agency. The action of the Commission here in effect represents an intrusion upon the various political and statutory roles of the planning boards. Merely because a Pinelands municipality has not had its zoning ordinance approved as conforming to the CMP and can not presently approve development proposals under its land use ordinance does not make it a nonentity. Nor does it preclude such a municipality from fulfilling its other functions with respect to recommending changes in the land use law, studying the master plan and considering matters not preempted by the -Pinelands Act and the CMP. As we said in Dover Twp.:
We can perceive no rational basis for denying the township the right to seek judicial redress of that alleged injury and the right to seek judicial protection of its exclusive sphere of governmental action from unwarranted invasion by another public body. [158 N.J. at 410],
Based on our analysis of the Bergen County and the Dover Tp. cases we find no reason to distinguish between administrative standing and judicial standing. Nor does any preemption of local land use ordinances by the Pinelands Protection Act and the CMP affect the result here.
The Commission relies upon N.J.S.A. 13:18A-12 c as authority to bar uncertified municipalities standing on their applica
[T]he Commission shall adopt and enforce such rules and regulations as may be necessary to implement the minimum standards contained in the comprehensive management plan as applicable to any such county or municipality. [N.J.S.A. 13:18A-12 c].
The Commission’s reliance on this section of the Pinelands Protection Act is misplaced. Its interpretation unduly extends the statutory language beyond the thrust of the legislation in order to penalize “nonconforming” municipalities in a way not authorized by statute. Indeed the Commission’s action in adopting the disputed resolution here runs counter to the requirement of N.J.S.A. 13:18A-8 h to provide for “maximum feasible local government and public participation in the management of the pinelands area.” See also N.J.S.A. 13:18A-8 i. Although N.J.S.A. 13:18A-12 c empowers the Commission to adopt and enforce such rules and regulations as may be necessary to implement the minimum standards in the CMP, we find no basis for reading the quoted language as authority to preclude any and all participation by any county or municipality whether their master plans or land use ordinances have or have not been approved. It is one thing to say that because a municipality lacked approval of its master plan and zoning ordinance it cannot act on development applications except with respect to matters not regulated by the CMP (such as parking, traffic and lighting conditions), but quite another to say that ipso facto the municipality also is deprived of any standing to participate in any fashion to assist the Commission in reaching a reasoned and proper determination on a development application. Indeed, the position taken by the planning boards here appears to be aimed at insuring compliance with the minimum standards of the CMP, while the Commission’s position would make it more difficult to have deficiencies in achieving such standards brought to its attention.
We reject the Commission’s determination that uncertified municipalities are not “interested persons” entitled to reconsideration of development approvals pursuant to N.J.A.C. 7:50-4.-17. The definition section of the regulations provides that “ ‘Person’ means an individual, corporation, public agency, business trust, partnership, association, two or more persons having a joint or common interest, or any other legal entity.” N.J.A. C. 7:50-2.11. The term “interested person” is defined as “any persons whose right to use, acquire or enjoy property is or may be affected by any action taken under this Plan, or whose right to use, acquire or enjoy property under this Plan or under any other law of this State or of the United States has been denied,
Our courts have historically taken a liberal approach to the issue of standing “in land use planning as well as in other actions particularly where matters of public policy are at stake.” Dover Twp. v. Dover Twp. Bd. of Adjustment, supra, 158 N.J.Super. at 411 n. 2 . See, e.g., Southern Burlington Cty. NAACP v. Mount Laurel Twp. 92 N.J. 158, 337 (1983); Crescent Park Tenants Ass’n v. Realty Eq. Corp. of New York, 58 N.J. 98, 101 (1971); Walker, Inc. v. Borough of Stanhope, 23 N.J. 657, 660-661 (1957); Urban League of Essex Cty. v. Mahwah Twp., 147 N.J.Super. 28, 33 (App.Div.1977), certif. den. 74 N.J. 278 (1977). In addition to the land use ramifications associated with Pinelands development approvals, it is clear from both the federal and State legislation that the protection of the Pinelands area is a significant public policy consideration which mandates input from the affected municipalities and counties.
The statutory framework seeks to assure at every level that the purposes of the Pinelands Protection Act are met. Those purposes would hardly be aided by the exclusion of a governmental agency merely on the basis that it had not yet conformed its master plan and land use ordinance to the CMP. It follows that if there is a basis for judicial review, certainly there is a basis for the Planning Boards here to seek participa
B.
We now turn to the issue of whether Hamilton and Egg Harbor are entitled to a hearing with respect to the Commission’s approval of respondents’ development application. We note initially that apart from any constitutional right that uncertified municipalities may have to a hearing, the Pinelands Protection Act of necessity envisions such a right.
The only specific provision of the Pinelands Protection Act addressing the subject of whether a hearing is required in the approval process is N.J.S.A. 13:18A-15 which states:
Subsequent to the adoption of the comprehensive management plan, the commission is hereby authorized to commence a review, within 15 days after any final municipal or county approval thereof, of any application for development in the pinelands area. Upon determining to exercise such authority, the commission shall transmit, by certified mail, written notice thereof to the person who submitted such application. The commission shall, after public hearing thereon, approve, reject, or approve with conditions any such application within 45 days of transmitting such notice; provided, however, that such application shall not be rejected or conditionally approved unless the commission determines that such development does not conform with the comprehensive management plan or the minimum standards contained therein, as applicable to the county or municipality wherein such development is located, or that such development could result in substantial impairment of the resources of the pinelands area. Such approval, rejection or conditional approval shall be binding upon the person who submitted such application, shall supersede any municipal or county approval of any such development, and shall be subject only to judicial review as provided in section 19 of this act.
Under this section, if the municipality’s master plan and implementing land use ordinance has been approved by the Commission (see N.J.S.A. 13:18A-12 c)
N.J.S.A. 13:18A-15 does not expressly address whether a hearing is required when the Commission exercises its authority to review directly a development application which proposes development in an uncertified municipality. It is apparent, however, that this section requires that if the Commission is to review municipal approval of a development application it must conduct a hearing. It is generally considered that the Legislature is cognizant of due process and fundamental fairness requirements, as well as the provisions of its prior legislation, such as the APA (see N.J.S.A. 13:18A-6 j), and the Open Public Meetings Act, N.J.S.A. 10:4-6 et seq. See Brewer v. Porch, 53 N.J. 167, 174 (1969); In re Keogh-Dwyer, 45 N.J. 117, 120 (1965). Awareness of the APA and the Open Public Meetings Act militates toward the conclusion that the Legislature intended a hearing to be conducted by the Commission whenever the Commission entered the approval process. See Jordan v. Horsemen’s Benevolent & Protective Ass’n, 90 N.J. 422, 435 (1982). A hearing could be required by due process and fundamental fairness requirements. Provision for a hearing would be particularly appropriate under the circumstances of the instant case, where Hamilton and Egg Harbor, so-called uncertified municipalities, are effectively denied any participation in the approval process.
Respondents take the position that municipalities with uncertified zoning ordinances are not only denied the power to
We also note that a municipality could not approve a development application without a public hearing if it was considering the application in the first instance under its zoning powers. See N.J.S.A. 40:55D-9 and N.J.S.A. 40:55D-10. It can hardly be a logical result to conclude that where the municipality is “uncertified” and thus precluded from exercising its zoning authority the decision to have the Commission review the matter and to hold a hearing at all would depend solely on staff recommendations no matter what the extent of the development proposal.
The attempt by the Commission to “penalize” municipalities which have not conformed their master plans and land use
Even if we were not to construe section 15 as requiring a hearing, there would still be a requirement for a hearing. We conclude that the actions of the Commission in approving or disapproving a Pinelands development application under the statutory scheme is quasi -judicial in nature, and thus subject to procedural due process principles. Juzek v. Hackensack Water Co., 48 N.J. 302, 314 (1966); In re Plainfield-Union Water Co., 11 N.J. 382, 392-393 (1953); Handlon v. Town of Belleville, 4 N.J. 99, 105 (1950); Kelly v. Hackensack Meadowlands Development Comm’n, 172 N.J.Super. 223, 228-229 (App.Div.1980), certif. den. 85 N.J. 104 (1980); In re Application of Modern Industrial Waste Service, 153 N.J.Super. 232, 238-239 (App. Div.1977); Jersey City v. Dept. of Civil Service, 57 N.J.Super. 13, 45 (App.Div.1959); New Jersey Mfrs. Cas. Ins. Co. v. Holderman, 54 N.J.Super. 260, 266 (App.Div.1959). That is precisely the type of proceeding that is involved when the Commission is required to pass upon development applications. What is essentially involved with respect to development approval under the Pinelands Protection Act is land use regulation. Applications for development approvals thus take on the quasi -judicial nature of zoning variance proceedings. We reject respondents’ argument that the Commission is acting in quasi -legislative and executive or ministerial capacities when passing on development applications under the procedures specified in the Pinelands Protection Act.
In Jersey City v. Dept. of Civil Service, supra, we noted:
The question of whether an administrative agency is required to grant a hearing to affected parties before issuing an order is generally determined by*132 inquiring whether the action is of a quasi -judicial nature, as opposed to an action of a legislative or executive (sometimes called ministerial) nature. Handlon v. Town of Belleville, 4 N.J. 99 (1950); New Jersey Manufacturers Cos. Ins. Co. v. Holderman, 54 N.J.Super. 260 (App.Div.1959). If the action partakes of the judicial, our traditions of due process and fair play require that affected parties be afforded the benefits of notice and a hearing, along with the other essential concomitants of judicial action. [57 N.J.Super. at 45.]
Handlon v. Town of Belleville, supra, discussed the considerations in determining whether actions of a governmental agency constitute a quasi -judicial function requiring a hearing:
The quality of the act rather than the character of the agency exercising the authority is determinative of the nature of the power and the need for procedural due process. Where the administrative tribunal is under a duty to consider evidence and apply the law to the facts as found, thereby exercising a discretion or judgement judicial in nature on evidentiary facts, the function is ordinarily quasi -judicial and not ministerial. The classification depends upon the nature of the act and the controls placed upon the exercise of the power in the legislative grant. [4 N.J. at 105.]
Applying these principles to the instant case, we conclude that the Commission’s authority to review and approve, reject or modify a development application is properly characterized as quasi -judicial rather than quasi -legislative. The Commission is required to review and consider the evidence presented, find facts and determine whether the proposed development is consistent with the CMP or warrants a nonintrusive deviation therefrom. See N.J.S.A. 13:18A-10 c. The CMP refers to the fact-finding process, see e.g., N.J.A.C. 7:50-4.28, although the regulations are not wholly consistent with either the statute or due process requirements. Moreover, in the approval of the developers’ application by the assistant director, he made “findings of fact” and conclusions drawn from them regarding the effect of and on the CMP. The process utilized was adjudicatory in nature. The Commission in such instances is not acting in its rule-making capacity, which, as we noted in Consolidation Coal Co. v. Kandle, 105 N.J.Super. 104, 113 (App.Div.1969), aff’d o.b. 54 N.J. 11 (1969), is a quasi -legislative function:
In its rule-making capacity, an administrative agency is nothing more than a minor legislative body considering proposed legislation under a grant of power:
“ * ° * Administrative rule-making remains in essence, however, the enactment of legislation of general application prospective in nature. The object is*133 not legislation ad hoc or after the fact, but rather the promulgation, through the basic statute and the implementing regulations taken as a unitary whole, of a code governing action and conduct in the particular field of regulation so those concerned may know in advance all the rules of the game, so to speak, and may act with reasonable assurance. * * * ” Boiler Beverages Inc. v. Davis, 38 N.J. 138, 151-152 (1962).
When an administrative agency acts legislatively, it should conduct its proceedings as does a legislature. The strictures of judicial procedure are wholly unrelated and unadapted to the promulgation of rules and regulations. See generally, Fuchs, “Procedure in Administrative Rule-Making,” 52 Harv.L. Rev. 259 (1938); Gellhorn and Byse, Administrative Law, Cases and Comments (4th ed. 1960), p. 725 et seq.
Moreover, in Kelly v. Hackensack Meadowlands Development Comm’n, supra, this court implicitly recognized that the grant of a variance is quasi -judicial in nature. We there recognized that the adoption of a master plan or amendment thereof was, however, of a different character when we said:
Appellants’ position is largely predicated upon their view that in adopting master plan amendments, HMDC is performing a quasi -judicial function implicating the whole range of procedural prescriptions attendant thereto, such as a requirement of individual notice to interested persons, the right to examine and cross-examine witnesses and the obligation of the agency to act on the basis of findings of fact and conclusions of law supported by the record. In short, appellants draw an analogy to an exercise by a local board of adjustment of the variance power. This analogy is inapposite. We regard it as perfectly clear that in adopting or amending its master plan the HMDC is performing a purely legislative function, analogous if to anything at all, to a municipal governing body’s power to zone and rezone. [172 NJ.Super. at 228]
Courts of other states have expressly held that the variance power is adjudicative in nature requiring application of due process principles. E.g., Horn v. County of Ventura, 24 Cal.3d 605, 156 Cal.Rptr. 718, 596 P.2d 1134 (1979).
As we view it the variance power analogy implicitly adopted by this court in Kelly and expressly adopted in Horn applies in this case. Under the provisions of the Pinelands Protection Act, the Commission is authorized to adopt and enforce regulations designed to implement the minimum standards of the CMP. The adoption of those regulations is clearly legislative in nature. The Act requires the CMP to provide for minimum land use standards. N.J.S.A. 13:18A-8 d. Enforcement thereof would be for the most part ministerial. By contrast, how
It is this quasi -judicial function which sets the approval procedure undertaken by the Commission apart from the ministerial function of issuing permits or licenses in the more usual sense. Likewise, respondents’ reliance on the riparian permit procedure is inapposite. Under the riparian laws permits to use State lands may be issued by the State to upland owners. N.J.S.A. 12:3-7 and 12:3-7.1. See also N.J.S.A. 12:3-22. Such permits are purely a matter of grace and the State is not required to issue same. Le Compte v. State, 65 N.J. 447 (1974); Taylor v. Sullivan, 119 N.J.Super. 426 (App.Div.1972), certif. den. 62 N.J. 70 (1972). Issuance of such permits under the relevant statutes is an executive function.
By way of recapitulation, we conclude that the Pinelands Protection Act itself clearly evinces a legislative intent that hearings be conducted when the Commission reviews a development application. Moreover, even if we were not to so construe the Act, the quasi -judicial functions of the Commission with respect to land use regulation in the Pinelands area within the
C.
We also observe in passing that the Pinelands Protection Act and the CMP fail to provide the public with notice and an adequate opportunity to be heard in the development approval process.
In the instant case the Commission approved respondent’s development application without ever providing the public with notice or an opportunity to be heard. Although the CMP does provide for notice of public hearings, those notice procedures
We also note that insofar as N.J.S.A. 40:55D-9 and 10 would require a public hearing where a “certified” municipality exercised its authority to review directly a development application the public's right to notice and an opportunity to be heard is preserved.
Under the circumstances of this case, where the proposed project is so extensive and public interests as well as property rights are likely to be affected, public hearings are necessary to fulfill the obvious Legislative goal of assuring that any development in the Pinelands area best suits the needs of those sensitive lands and resources.
IY.
In summary, we conclude that the municipalities here have standing. The regulations of the Commission are defective with respect to notice to the public of development applications. Furthermore, to the extent that the action of the Commission’s staff in approving, rejecting or modifying such applications would allow a final approval without the Commission
The determination of the Commission refusing to allow Hamilton and Egg Harbor to participate in an administrative hearing is reversed. The appeals are remanded to the Commission with direction to refer the matters to the Office of Administrative Law for further proceedings in connection with their requests for “reconsideration,” unless the Commission decides to hear the matter itself. See In re Uniform Administrative Procedure Rules, 90 N.J. 85, 104-105 n. 8 (1982).
It was represented to us at oral argument that Hamilton’s zoning ordinance is in the process of being certified and that it was expected to be certified in March 1985. We have since been advised that this occurred on March 8, 1985.
The approval document, which apparently constituted the final approval for the particular development involved, consisted of five pages. The "Findings of Fact" were recited on the equivalent of one typewritten page, followed by two pages which constituted the "conclusion” of the assistant director. The last IV2 pages thereof consisted of a lengthy recitation of the “Reconsideration" procedure for "Any person who is aggrieved by this determination____” The last page consisted solely of the signature block and signature of William Harrison as "Assistant Director” and a listing of where 12 copies of the letter were sent. See infra n. 4.
N.J.A.C. 7:50-5.13(g) defines such areas as:
areas of existing growth or lands immediately adjacent thereto which are capable of accommodating regional growth influences while protecting the essential character and environment of the Pinelands, provided that the environmental objectives of subchapter 6 [NJ.A.C. 7:50-6] are implemented through municipal master plans and land use ordinances.
Although not specifically raised by this appeal, we question the adequacy of the so-called "Findings of Fact” made by the assistant director. The findings made by the assistant director here are not only sparse and incomplete, but also conclusory as we have previously noted. See supra n. 2. The "findings” for a project of the magnitude proposed by respondent developers, contained in little more than one page, would hardly have provided a basis for adequate judicial review. Adequate, complete and specific findings are required, not conclusory statements. See Commons v. Westwood Zoning Board of Adjustment, 81 N.J. 597, 609 (1980); Gougeon v. Board of Adjustment of Borough of Stone Harbor, 52 N.J. 212, 223 (1968), app. after remand, 54 N.J. 138 (1969). Cf. Crema v. New Jersey Dept. of Environmental Protection 182 N.J.Super. 445, 452-454 (App.Div.1982), mod. and aff'd 94 N.J. 286 (1983); Crema v. New Jersey Dept. of Environmental Protection, 192 N.J.Super. 505, 515-516 (App.Div.1984),
Hamilton also asserted that the Pinelands Development Approval should have required the developer to obtain local site-plan review of matters not covered by the approval. This is not specifically raised on this appeal. Respondent Commission acknowledges that whether a municipality’s zoning ordinance is certified or uncertified does not remove from local agencies the authority to exercise regulatory control over matters not regulated by the CMP, such as parking, traffic or lighting conditions. See N.J.A.C. 7:50-4.12 and Fine v. Galloway Tp. Committee, 190 N.J.Super. 432, 442 (Law Div.1983).
The Commission did not reach such a conclusion regarding counties.
N.IA.C. 7:50-2.11 defines "interested person” as:
[Ajny persons whose right to use, acquire or enjoy property is or may be affected by any action taken under this Plan, or whose right to use, acquire*118 or enjoy property under this Plan or under any other law of this State or of the United States has been denied, violated or infringed upon by an action or a failure to act under this Plan.
Proceedings, apparently instituted on the Commission’s request for an advisory opinion, were subsequently conducted before an AU regarding the procedure to be utilized where so-called uncertified municipalities were involved. Various developers or developer associations participated and urged a lack of standing. The result was a January 28, 1985 “Report and Recommendation" by an AU who had resigned effective December 21, 1984. Presumably his report was issued pursuant to an order entered under authority of N.J.S.A. 52:14F-5 m. That report indicated that although uncertified municipalities had no standing to contest the action of Commission staff, there should nevertheless be an opportunity for them to provide input on applications. He suggested that the Commission's regulations be revised. Although the respondents argue the position in the report, we note that it was issued subsequent to the action which is the subject of this appeal. Subsequent to oral argument we were advised that on March 8, 1985 the Commission adopted the AU’s report. We have not been advised of any appeal therefrom.
We note that although N.J.S.A. 13:18A-14 f authorizes the executive director to review all requests or applications for a Commission finding pursuant to that section, and make appropriate recommendations, that section nonetheless provides "that the commission shall take final action on all such requests or applications." However, neither the executive director nor the staff has authority under the statute to give final approval to applications. Their function is to make recommendations to the Commission which must make the final decisions.
But see N.J.S.A. 13:18A-14 f, -15, -20 and supra n. 9.
However, even if that were so and the statute did not require to the contrary as we hold it does, the Commission did not comply with the Administrative Procedure Act, N.J.S.A. 52:14B-1, et seq.
Now The Port Authority of New York and New Jersey. See N.J.S.A. 32:1-4.1 for New Jersey's enactment.
The "reconsideration” procedure utilized under the Commission’s regulations is somewhat unique. It is essentially an after-the-fact proceeding following a submission by a developer of an application and supporting materials and an uninhibited opportunity for review with the Commission staff.
The term "certified" is used in the Commission’s regulations to describe such a municipality. See N.J.A.C. 7:50-3.
Because the Commission took the position that uncertified municipalities have no standing, and because there appeared to be a deficiency in the Pinelands Protection Act itself regarding the sending of notices for development approval to anyone other than the applicant (NJ.S.A. 13:18A-15), and the lack of notice to other interested persons who might become aggrieved, we requested supplemental letter briefs on the due process aspects of the statute. We are aware that under N.J.A.C. 7:50-4.31 it is provided that if the Executive Director determines that the Commission should review final local approval the Commission is required to conduct a public hearing under the procedures set out in N.J.A.C. 7:50-4.3. Subsection (b)2 of N.J.A.C. 7:50-4.3 requires notice of the hearing to be given to: the applicant; to any person who has filed a written request with the Commission and paid an annual fee to receive notice; the record owner of land on which the development is proposed; the clerk of the county or municipal planning board and environmental commission, if any, with jurisdiction over any property on which development has been proposed or which would be directly affected by a map amendment; land owners within 200 feet of any border of the property proposed for development and publication of the notice in a newspaper having general circulation in the area, all at least 10 days in advance of the hearing. Posting is also required on the parcel proposed for development.
See the Open Public Meetings Act (Sunshine Act), N.J.S.A. 10:4-6, et seq.
Because Hamilton Township’s master plan and zoning ordinances have now been certified, it may be that developers would now be required to submit their application to the municipality and that Hamilton would now review the application directly.