SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-6082-99T1
KNOWLTON RIVERSIDE ESTATES,
INC., a Corporation of the
State of New Jersey,
Plaintiff-Respondent,
v.
THE PLANNING BOARD OF THE
TOWNSHIP OF KNOWLTON, a duly
constituted public body and
municipal agency of the
Township of Knowlton, Warren
County, New Jersey,
Defendant-Appellant,
and
TOWNSHIP OF KNOWLTON, a municipal
corporation of the State of
New Jersey,
Defendant.
_____________________________________
Submitted October 23, 2001 - Decided February 5, 2002
Before Judges Skillman, Carchman and Wells.
On appeal from Superior Court of New Jersey,
Law Division, Warren County, Docket No. L-
190-00.
Hollander Hontz Weaver & Hinkes, attorneys
for appellant (Mark J. Hontz, of counsel and
on the brief).
Courter, Kobert, Laufer & Cohen, attorneys
for respondent (Kevin M. Hahn, of counsel;
Matthew C. Johnston, on the brief).
The opinion of the court was delivered by
SKILLMAN, P.J.A.D.
This appeal involves the interpretation of N.J.S.A. 40:55D-
52(d), which entitles a developer to a mandatory extension of the
two-year period of exemption from a change in the zoning of its
property conferred by final subdivision approval, if the
developer can prove it was "barred or prevented . . . from
proceeding with the development because of delays in obtaining
legally required approvals from other governmental entities and
that [it] applied promptly for and diligently pursued these
approvals."
On December 26, 1989, plaintiff's predecessor in title
obtained conditional preliminary major subdivision approval for
twenty-two residential building lots on a forty-three acre tract
in Knowlton Township. The approved subdivision plan also
included a nine acre lot for open space and water detention
purposes.
When this approval was obtained, the property was zoned for
single family homes on lots with a minimum size of one acre. In
1992, the Township adopted an amended zoning ordinance, under
which plaintiff's property was placed in a Farmland Preservation
Zone that requires a minimum of five acres for a residential
building lot. However, under N.J.S.A. 40:55D-49(a), plaintiff's
property was exempted from this zoning change for a three-year
period following preliminary subdivision approval, and under the
Permit Extension Act, N.J.S.A. 40:55D-130 to 136, this exemption
was extended for an additional four years to December 31, 1996,
N.J.S.A. 40:55D-133(a).
Near the end of this extension, plaintiff applied for final
subdivision approval. On December 30, 1996, the defendant
Knowlton Township Planning Board (Board) granted plaintiff final
subdivision approval, which was memorialized by a resolution
adopted on January 28, 1997. Pursuant to N.J.S.A. 40:55D-52(a),
this final subdivision approval granted plaintiff an additional
two-year exemption from the 1992 rezoning of its property. This
approval was subject to twenty conditions, including "outside
agency review," most of which had to be satisfied within ninety
days.
However, because plaintiff was unable to satisfy these
conditions in a timely manner, it had to apply for an extension
of time, which the Board granted by a resolution adopted on June
24, 1997. With respect to the condition that plaintiff obtain
required outside agency review, this resolution stated:
[T]he Attorney for the Applicant
indicates that they have begun the process of
completing those approvals. It was
recommended that the letters from those
agencies be provided to the Secretary of the
Board.
Plaintiff subsequently determined that there was a two-and-
a-half foot error in the flood plain line shown on the maps
submitted in support of its application for preliminary
subdivision approval, which required a reconfiguration of the
lots and a modification of the proposed detention basin. The
Board concluded that these revisions in the subdivision plan
"materially impacted" the preliminary and final major subdivision
approvals. Therefore, the Board granted an amended final
subdivision approval of a revised subdivision plan, which was
memorialized by a resolution adopted on January 27, 1998. The
Board also apparently concluded that this amended approval
extended plaintiff's exemption from the 1992 rezoning of its
property for another year, from January 28, 1999 to January 27,
2000.
On February 15, 2000, plaintiff applied to the Board for a
one-year extension of the revised final subdivision approval
granted on January 27, 1998. In support of this application,
plaintiff claimed that it was entitled to a mandatory extension
of time under N.J.S.A. 40:55D-52(d), because delays in obtaining
legally required approvals from other governmental entities had
prevented it from proceeding with the development. In the
alternative, plaintiff requested the Board grant a discretionary
one-year extension under N.J.S.A. 40:55D-52(a).
The Board conducted a two day evidentiary hearing, following
which it voted to deny plaintiff's application for an extension
of time under both N.J.S.A. 40:55D-52(d) and N.J.S.A. 40:55D-
52(a). The Board concluded that plaintiff had failed to show
that it had applied for and diligently pursued the required
government approvals, or that there had been undue delay by any
governmental entity in reviewing plaintiff's applications for
those approvals. The Board also concluded that plaintiff had
failed to show that the alleged delay in receipt of the required
governmental approvals had prevented it from proceeding with the
subdivision prior to the January 27, 2000 deadline.
Consequently, the Board ruled that plaintiff had failed to
demonstrate its entitlement to an extension of time under
N.J.S.A. 40:55D-52(d).
In addition, the Board found that plaintiff had not "duly
recorded the plat" for its proposed subdivision, which is a
precondition of seeking a discretionary extension under N.J.S.A.
40:55D-52(a). The Board also indicated that even if plaintiff
had satisfied this precondition, it still would not have been
granted a discretionary extension of time because plaintiff's
proposed development was inconsistent with the Township's current
master plan and zoning. Moreover, the Board noted that "[i]n
light of [plaintiff's] difficulty in obtaining financing, the
exhaustion of [its] financial resources and [its] history of
abandoning partially completed subdivisions there is no assurance
that this subdivision would be diligently and promptly completed
to all required standards."
Plaintiff brought this action in lieu of prerogative writs
challenging the denial of its application for an extension of the
period of exemption from the 1992 rezoning of its property. In
addition to challenging the denial, the complaint sought
declaratory relief and damages based on a number of alleged
constitutional violations.
The matter was brought before the trial court by an order to
show cause, and the court decided to consider the validity of the
Board's denial of plaintiff's extension application in a summary
manner, see R. 4:67-1(b), severing the remaining counts of the
complaint. The court concluded in an oral opinion, without
detailed findings of fact, that even though plaintiff had not
"acted with the greatest of speed" in seeking the required
approvals from other governmental entities, it had nevertheless
satisfied the requirement of N.J.S.A. 40:55D-52(d) that a
developer "appl[y] promptly for and diligently pursue[] these
approvals." The court also stated, again without detailed
findings, that plaintiff had experienced "difficulties in
obtaining a permit from one state agency, while another one was
expiring[,] [a]nd then going back to the other agency[.]" The
court further indicated that if plaintiff had failed to show that
it was entitled to a mandatory extension of time under N.J.S.A.
40:55D-52(d), it would not have been entitled to a discretionary
extension under N.J.S.A. 40:55D-52(a) because it had not
satisfied the precondition of "duly record[ing] the plat" for its
proposed subdivision. The court memorialized its decision by a
final judgment, which reversed the Board's denial of plaintiff's
application and granted a one-year extension of the exemption
from the current zoning ordinance conferred by plaintiff's
amended final subdivision approval. The judgment also dismissed
the remaining counts of plaintiff's complaint "without
prejudice."See footnote 11
The Board appeals from the part of the final judgment which
reversed its denial of plaintiff's extension application and
extended the protection period under the final subdivision
approval to January 28, 2001.See footnote 22 Plaintiff has not cross-appealed
from the part of the judgment which dismissed its claim for
relief under N.J.S.A. 40:55D-52(a) nor has it argued as an
alternative grounds for affirmance that the Board erred in
denying relief under this subsection.
We conclude that the Board correctly found that plaintiff
failed to show its entitlement under N.J.S.A. 40:55D-52(d) to a
mandatory extension of the two-year period of exemption from the
application of the 1992 revision of the Knowlton zoning
ordinance. Therefore, we reverse the part of the judgment
granting plaintiff an additional year of exemption from the
rezoning.
N.J.S.A. 40:55D-52(d), which was part of a 1991 package of
amendments to the Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-
1 to -136, L. 1991, c. 256, § 11, provides in pertinent part:
The planning board shall grant an
extension of final [major site plan or
subdivision] approval for a period determined
by the board but not exceeding one year from
what would otherwise be the expiration date,
if the developer proves to the reasonable
satisfaction of the board that the developer
was barred or prevented, directly or
indirectly, from proceeding with the
development because of delays in obtaining
legally required approvals from other
governmental entities and that the developer
applied promptly for and diligently pursued
these approvals.
There is no legislative history or case law illuminating the
reason for enactment of this provision.See footnote 33 However, the apparent
purpose of N.J.S.A. 40:55D-52(d) and other similar sections of
the MLUL enacted in 1991See footnote 44 was to establish fixed legal standards
to govern a developer's application for an extension of the
period of protection provided by subdivision and site plan
approval based on delays in obtaining required governmental
approvals, instead of requiring a developer to seek such relief
under the essentially standardless discretion reposed in a
planning board by N.J.S.A. 40:55D-52(a).
To be entitled to an extension under N.J.S.A. 40:55D-52(d),
a developer must show to the "reasonable satisfaction" of the
Board that (1) it "applied promptly for and diligently pursued
[legally required approvals]"; (2) "there were delays in
obtaining [those] approvals from other governmental entities";
and (3) those delays "barred or prevented" the developer,
"directly or indirectly, from proceeding with the development."
If a developer makes these factual showings, N.J.S.A. 40:55D-
52(d) provides that "[t]he planning board shall grant an
extension of [the] final approval." Thus, the grant of an
extension of time under this subsection is mandatory, and a
board's discretion is limited to determining the length of the
extension.
Because a developer is entitled to a mandatory extension of
time under N.J.S.A. 40:55D-52(d) if it makes the required factual
showings, a court reviewing the denial of such an extension must
determine whether there is sufficient credible evidence in the
record to support the planning board's findings that the
applicant failed to establish the facts that would entitle it to
an extension. See Rowatti v. Gonchar,
101 N.J. 46, 51-52 (1985).
If the record contains such evidence, the board's decision must
be upheld.
In support of its claim to a mandatory extension under
N.J.S.A. 40:55D-52(d) of the exemption from the rezoning of its
property, plaintiff relies upon alleged delay by other
governmental entities in granting three required approvals: (1)
DEP's approval of plaintiff's removal of underground oil tanks;
(2) DEP's issuance of a letter of interpretation confirming the
delineation and classification of wetlands; and (3) DOT's grant
of a road [opening] permit.See footnote 55 Plaintiff's applications and the
processing each of these three required approvals by the DEP and
DOT must be considered separately.
Initially, we reject plaintiff's argument that the Board
should have considered only the period following the grant of
plaintiff's revised final subdivision approval in determining
whether it "applied promptly for and diligently pursued" the
legally required approvals. The MLUL defines "[f]inal approval"
as "the official action of the planning board taken on a
preliminarily approved major subdivision or site plan, after all
conditions, engineering plans and other requirements have been
completed or fulfilled and the required improvements have been
installed or guarantees properly posted for their completion, or
approval conditioned upon the posting of such guarantees."
N.J.S.A. 40:55D-4. Thus, a developer's obligation to obtain
required approvals from other governmental entities does not
commence with the grant of final subdivision approval. To the
contrary, the MLUL envisions that a developer ordinarily will
obtain such approvals before even applying for final subdivision
approval. In fact, a developer may need to obtain certain
governmental approvals before applying for preliminary
subdivision approval. See Field v. Township of Franklin,
190 N.J. Super. 326, 331-33 (App. Div.), certif. denied,
95 N.J. 183
(1983). Moreover, the preliminary subdivision approval obtained
by plaintiff's predecessor in 1989 was specifically conditioned
upon plaintiff obtaining "all appropriate outside agency reviews
including the . . . New Jersey Department of Environmental
Protection [DEP] and the New Jersey Department of Transportation
[DOT]." Therefore, plaintiff's failure to obtain or maintain the
effectiveness of such approvals during the more than eight year
period between preliminary and final subdivision approval is
clearly relevant to a determination whether plaintiff "applied
promptly for and diligently pursued" the legally required
approvals for its development.
We also reject plaintiff's argument that it should be deemed
to have "diligently pursued" a legally required approval so long
as it responded to an approving agency's request for additional
documents or information before the deadline established under
that agency's rules. Such a deadline reflects the maximum amount
of time the agency considers reasonable for an applicant to
respond to the agency under any circumstances. It does not mean
that that is a reasonable time for any response to the agency,
regardless of the type of information or number of documents
requested or the past course of dealings between the applicant
and the agency. Therefore, the fact that plaintiff responded to
each of the DOT's series of requests for additional documents and
information relating to plaintiff's application for a highway
access permit within the ninety day period allowed under the
applicable DOT rule, N.J.A.C. 16:47-4.5(c), does not necessarily
mean that plaintiff pursued that application diligently.
Instead, plaintiff was required to demonstrate that its delays in
responding to those requests were reasonable under the particular
circumstances of this case.
One of the conditions of the original final subdivision
approval the Board adopted on January 28, 1997 was that plaintiff
"provide written proof and verification that all tanks have been
removed from Lots 1.09, 1.10 and 1.11." To satisfy this
condition, plaintiff contracted with an engineering company to
locate and remove any underground oil tanks on the site.
Although the contractor was unable to locate any tanks, the
Township Engineer notified plaintiff the day before it was
granted revised final subdivision approval that there apparently
was at least one tank on the property. Moreover, a few weeks
later, on February 13, 1998, the Township Engineer notified
plaintiff of the specific location of "a pipe protruding from the
ground" and suggested that plaintiff "retain a backhoe to further
excavate this area." However, plaintiff's contractor took nine
months from that date to locate and remove the two underground
oil tanks found on the property, and plaintiff waited another two
months, until January 12, 1999, before applying to the DEP for
approval of the removal. The DEP granted this approval on August
11, 1999, which was five-and-a-half months before the January 27,
2000 expiration of the exemption from the rezoning of plaintiff's
property provided by the revised final subdivision approval.
Based on this evidence, the Board found that plaintiff had
not acted diligently in locating and removing the underground oil
tanks and applying to the DEP for approval of the removal. The
Board also noted that plaintiff had not presented any evidence
that the time the DEP took to review this application was
unreasonable. In addition, the Board indicated that even if
plaintiff had demonstrated its own diligence in resolving the
tank removal issue and the DEP's delay in approving that removal,
plaintiff still would not be entitled to relief under N.J.S.A.
40:55D-52(d) because the five-and-a-half month period between the
DEP's approval of the tank removal on August 11, 1999 and the
January 27, 2000 expiration date would have been sufficient for
plaintiff to obtain the necessary financing and proceed with the
subdivision. These findings are adequately supported by the
record, and thus there was no basis for the trial court to reject
this part of the Board's decision.
The requirement that plaintiff "obtain[] a letter of
interpretation from the [DEP] to confirm the wetlands delineation
as well as the wetlands classification" of its property was one
of the conditions of the preliminary subdivision approval
obtained by plaintiff's predecessor in title in 1989.
Plaintiff's predecessor complied with this condition by obtaining
the required letter of interpretation on July 3, 1990, but that
letter had expired by January 27, 1998, when plaintiff received
revised final subdivision approval. Although plaintiff should
have been aware that the wetlands letter of interpretation had
expired, it did not even retain an environmental consultant to
apply for a new one until more than a year later, in the spring
of 1999, and this consultant did not submit the required request
and supporting information to the DEP until July 28, 1999.
Plaintiff failed to present any explanation for this long delay
in applying for a new wetlands letter of interpretation. The DEP
issued the required letter on November 24, 1999, five months
after the application.
Based on this evidence, the Board found that plaintiff "took
absolutely no steps to renew its wetland permits between January
1998 and June 1999[,]" and that "[t]his 18 month period of
inactivity represents a complete lack of diligence on the part of
the [plaintiff]." The Board also found that there was no
evidence of any undue delay by the DEP in considering plaintiff's
request for a letter of interpretation. These findings are
adequately supported by the record, and thus the trial court also
erred in rejecting this part of the Board's decision.
The requirement that plaintiff obtain "all appropriate
outside agency reviews . . . including the [DOT]," was another
one of the conditions of the preliminary subdivision approval
obtained by plaintiff's predecessor in title in 1989.
Plaintiff's predecessor complied with this condition by obtaining
a DOT highway access permit in 1992. Plaintiff later obtained a
series of extensions of this permit, the last of which expired on
December 31, 1998. During these extensions, plaintiff met with
the Township Engineer to discuss construction of the right-of-
way, and on January 30, 1997, plaintiff posted a $5670
restoration bond for work within the right-of-way. However,
plaintiff failed to perform this work prior to expiration of the
last extension of the permit. Consequently, in January 1999,
plaintiff had to apply to the DOT for a new highway access
permit. Moreover, the revision in plaintiff's subdivision plan
required by the discovery of the two-and-a-half foot error in the
flood plain line necessitated changes in the highway access the
DOT had approved in 1992.
On February 5, 1999, the DOT notified plaintiff that there
were various deficiencies in the documents it had submitted in
support of the application. On February 19, 1999, plaintiff
submitted further documents to the DOT. On March 22, 1999, the
DOT notified plaintiff that it still had not submitted all of the
required documents and information. On April 13, 1999, plaintiff
submitted some of the required additional documents and
information, and on April 14, 1999, the DOT sent a letter listing
the further documents and information plaintiff had to submit for
the DOT to complete review of the application. On May 24, 1999
plaintiff responded to the DOT's request by submitting additional
documents and information. However, on July 7, 1999, the DOT
notified plaintiff that its submission still did not fully
respond to the deficiencies the DOT had previously identified,
and that plaintiff had to submit certain additional information
and documents. Plaintiff did not respond to this notice until
three months later, on October 4, 1999, when it submitted certain
additional information. On November 8, 1999, the DOT notified
plaintiff that there were still deficiencies in the documents
submitted in support of its application. Plaintiff did not
submit the required revision in its highway access plans to the
DOT until January 24, 2000. After reviewing those plans, the DOT
notified plaintiff that it intended to approve the application,
conditioned upon plaintiff submitting certain limited additional
information.
At the hearing before the Board, plaintiff's traffic
engineering consultant gave the following explanation for
plaintiff's three month delay between July 7, 1999, and October
5, 1999 in responding to the DOT's request for additional
document and information:
[T]here were times, I'll be honest and
say that we had got comments back from them
and due to workload and that, and this didn't
happen to be the number one priority in the
office at the time, that we didn't jump on it
the day it came in and start working on it.
It's, you know, scheduling and other issues.
But I think in an overall fashion, what
was done here in the times between receipt of
letters and redo is not, I don't think,
unreasonable. It wasn't like it was just put
away.
There was one lapse. I think the
longest lapse we had was -- we had a two-
month lapse between the July and the
resubmittal to --
A member of the board then noted that plaintiff actually had
taken three months to respond to the DOT's July 7, 1999 request
for additional documents and information. Plaintiff's traffic
engineering consultant also admitted that he was unable to
identify any unreasonable delay by the DOT in responding to
plaintiff's series of submissions in support of its application
for a new highway access permit.
Based on this evidence, the Board found that plaintiff had
failed to diligently pursue its application for a highway access
permit, and that plaintiff had not shown any unreasonable delay
on the part of the DOT in processing this application. The Board
also noted that if plaintiff had diligently pursued and completed
its work prior to the twice-extended expiration date of its
initial permit, plaintiff would not even have been required to
apply for a new access permit. These findings are adequately
supported by the record, and therefore the trial court should
have upheld this part of the Board's decision.
In sum, the Board's findings that plaintiff failed to
"appl[y] promptly for and diligently pursue[]" the required DEP
and DOT approvals and that those agencies did not unduly delay in
acting upon plaintiff's applications are supported by sufficient
credible evidence. Therefore, the trial court erred in reversing
the Board's decision denying plaintiff's extension application.
Accordingly, we reverse the part of the judgment granting
plaintiff an additional year of exemption from the rezoning of
its property and remand for entry of judgment in favor of
defendant Board.
Footnote: 1 1 The judgment provides that if the Board does not appeal, the dismissal "shall automatically become with prejudice[,]" but that "[i]f the Defendant Board files a timely appeal . . . the dismissal of the Third through Seventh Counts of Plaintiff's Complaint . . . shall remain without prejudice and, if there is a subsequent reversal or remand, Plaintiff's rights to pursue those claims . . . shall be preserved and Plaintiff will have the right to resurrect those claims and pursue them to the fullest extent of the law if it so chooses[.]" We have previously noted that an order which dismisses unresolved claims without prejudice to reinstatement after an appeal is not a final judgment appealable as of right to this court, and that such a disposition may not be used as "an artifice to foist jurisdiction upon this court." CPC Int'l, Inc. v. Hartford Accident & Indem. Co., 316 N.J. Super. 351, 366 (App. Div. 1998), certif. denied, 158 N.J. 74 (1999). Thus, this appeal would have been subject to dismissal as interlocutory. However, because the appeal has been fully briefed and the issues presented are of public significance, we have decided to address the merits. Footnote: 2 2 On September 7, 2000, the parties entered into a consent order which provides that the extension of plaintiff's final subdivision approval is tolled pending the outcome of this appeal, and that if this court affirms the judgment, plaintiff's extension will be extended for an additional 235 days from the date of our decision. Footnote: 3 3 There is one Law Division decision that deals indirectly with N.J.S.A. 40:55D-52(d), but does not consider its purpose. See Aronowitz v. Planning Bd. of Township of Lakewood, 257 N.J. Super. 347, 360-68 (Law Div. 1992). Footnote: 4 4 The 1991 amendments to the MLUL included similar provisions for mandatory extensions of the exemptions from zoning changes conferred by preliminary major site plan approvals, N.J.S.A. 40:55D-49f, minor subdivision approvals, N.J.S.A. 40:55D-47g, and minor site plan approvals, N.J.S.A. 40:55D-46.1c. Footnote: 5 5 Before the trial court, plaintiff also argued that there had been undue delay by the Board in reviewing plaintiff's revised final subdivision maps. On appeal, plaintiff does not advance this argument.