SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-3936-99T2
STATE OF NEW JERSEY, by the
COMMISSIONER OF TRANSPORTATION,
Plaintiff-Respondent,
v.
TRAP ROCK INDUSTRIES, INC.,
a corporation of New Jersey,
Defendant-Appellant,
and
RUBEROID CO., a defunct corporation
of New Jersey; STATE OF NEW JERSEY;
TOWNSHIP OF HAMILTON, in the County
of Mercer, a municipal corporation
of New Jersey,
Defendants.
____________________________________
Submitted February 21, 2001 - Decided March 15, 2001
Before Judges Pressler, Kestin and Ciancia.
On appeal from the Superior Court of New Jersey,
Law Division, Civil Part, Mercer County,
MER-L-2246-99; opinion reported at
331 N.J. Super. 258 (Law Div. 2000).
Drinker Biddle & Stanley, attorneys for appellant
(Vincent E. Gentile and Stacey P. Roth, on the brief).
John J. Farmer, Jr., Attorney General, attorney for
respondent (Michael J. Haas, Assistant Attorney
General, of counsel; Drew K. Kapur, Deputy Attorney
General, on the brief).
The opinion of the court was delivered by
KESTIN, J.A.D.
Defendant, Trap Rock Industries, Inc., appeals from a judgment
entered in the Law Division on February 18, 2000, declaring that
the State of New Jersey through the Commissioner of Transportation
had lawfully exercised its powers of eminent domain to acquire
certain property belonging to defendant; appointing condemnation
commissioners; and granting possession of the property to the
condemnor, subject to a stay pending appeal. In a comprehensive
written opinion published at
331 N.J. Super. 258 (Law Div. 2000),
Judge Feinberg articulated her reasons for that result. We are in
substantial agreement with her decisional rationale and affirm on
that basis.
The facts of the matter are set out in the trial court's
opinion. 331 N.J. Super. at 262-66. We will not repeat them
except as necessary to discuss at greater length one of the grounds
for decision employed by the trial court. That ground is based
upon an interpretation of N.J.S.A. 27:7A-4.1, a section of the
Limited Access Highway Act, N.J.S.A. 27:7A-1 to -10. We construe
that provision to confer authority on the Commissioner to condemn
the subject property notwithstanding that 1) it is located about
one mile from the limited access highway its acquisition was
designed to serve; and 2) the condemnation proceedings were
commenced two years after the Department of Transportation had
originally acquired the rights of way for the highway itself.
The power of eminent domain, although inherent in sovereignty
where founded in necessity, State v. Lanza,
27 N.J. 516, 529
(1958), appeal dismissed,
358 U.S. 333,
79 S. Ct. 351,
3 L. Ed.2d 350 (1959), and subject to the payment of just compensation, id. at
529-30, U.S. Const. amend. V and XIV; N.J. Const. art. I, § 20, may
not be exercised without a specific grant of authority from the
Legislature. Lanza, supra, 27 N.J. at 530; see also N.J.S.A. 20:3-
1 to -50 (the Eminent Domain Act of 1971 establishing the uniform
procedures to be followed by all entities authorized to exercise
the power); 6 Nichols on Eminent Domain § 24.07 (Sackman & Van
Brunt ed., 3d ed. rev. 1989). And, it is well established that
statutes granting the power are to be given a strict construction
because, by definition, they derogate the private property rights
so comprehensively protected by the federal and State
constitutions. See State Highway Comm'r v. Maas & Waldstein Co.,
83 N.J. Super. 211, 217 (App. Div. 1964); 3A Sutherland on
Statutory Construction § 67.02 (Singer ed., 5th ed. 1992); 6
Nichols, supra, at § 24.07. Judge Feinberg's rationale properly
applied the prevailing standards. Her determination that the
Legislature had acted to confer the eminent domain power upon the
Commissioner of Transportation with considerable breadth, 331 N.J.
Super. at 268, is not at war with the general policies and
standards which aid in determining whether that power has been
granted. See, e.g., Mass & Waldstein, supra, 83 N.J. Super. at
217 ("The Highway Act should be liberally construed to reflect its
purpose, the building of state highways."); State Highway Comm'r v.
Totowa Lumber & Supply Co.,
96 N.J. Super. 115, 119 (App. Div.
1967) ("We have adopted the liberal view as to the meaning of
'public use.'"); see also 6 Nichols, supra, at §24.07.
We agree with the trial court's disposition of defendant's
argument that environmental mitigation is not expressly within the
ambit of the purposes stated in N.J.S.A. 27:7A-3(a) for which the
power to condemn may be exercised in the construction of limited
access highways. There is a solid basis in the reasons articulated
for determining that, in every practical sense, the property at
issue here was needed for "the traveled way", ibid., for without
that property's availability for mitigation purposes, the
conditions of the environmental permit would not have been met and
the highway could not have been constructed.
We also subscribe to Judge Feinberg's characterization of the
terms of N.J.S.A. 27:7A-4.1 as "appear[ing] to actually expand the
Commissioner's powers by allowing the Commissioner to take more
property for purposes of limited access highways than is
necessary." 331 N.J. Super. at 273-74. Because of an emphasis in
some of defendant's arguments, that is the concept worth enlarging.
Defendant has contended that the condemnation was invalid because
(1) the property used for mitigation is far from the habitat that
was destroyed by the highway's construction, (2) defendant is being
penalized because the acreage taken for the required mitigation was
twice the amount of the actual acreage that was destroyed, and
(3) an innocent property owner has no involvement in the mitigation
decision and no opportunity to challenge the assumptions on which
the mitigation requirement was based.
N.J.S.A. 27:7A-4.1 states:
In connection with the acquisition of
property or property rights for any limited
access highway or portion thereof, the
commissioner, with respect to limited access
highways under his jurisdiction, and the
governing body of a county, with respect to
limited access highways under its
jurisdiction, may, in his or its discretion,
acquire by gift, devise, purchase or
condemnation, an entire lot, block or tract of
land, if, by so doing, the interests of the
public will be best served even though said
entire lot, block or tract is not needed for
transportation purposes, but only if the
portion not needed for transportation purposes
is landlocked or is so situated that the cost
to the State will be practically equivalent to
the total value of the whole parcel of land.
For purposes of this section, "transportation
purposes" means all uses of property which
are, in the judgment of the commissioner,
useful or beneficial in promoting an
efficient, integrated, and balanced
transportation system.
We note specifically the clause stating that "the
commissioner, with respect to limited access highways under his
jurisdiction . . . may, in his . . . discretion, acquire by . . .
condemnation, an entire lot, block or tract of land[.]" It is
undisputed here that Route 29 is a limited access highway and that
the Commissioner used the condemnation power to acquire the whole
of appellant's tract in question.
The statute also states that the Commissioner may condemn the
entire lot "if, by so doing, the interests of the public will be
best served even though said entire lot, block or tract is not
needed for transportation purposes[.]" It is beyond question that
environmental mitigation serves the interests of the public.
In order to construct Route 29, the Department submitted
applications for development permits to the Department of
Environmental Protection (DEP) pursuant to the Waterfront
Development Act (WDA), N.J.S.A. 12:5-1 to -11, and to the United
States Army Corps of Engineers (COE). Both applications were
granted with a 2:1 replacement requirement by way of environmental
mitigation. We recently dismissed an appeal from the issuance of
the DEP permit in an unpublished opinion, In re Waterfront Dev.
Permit No. 1111-96-0003.2 WFD, Issued to N.J. Department of Transp.
by N.J. Dep't of Envtl. Prot., No. A-1249-97 (App. Div. 2000).
Although the authority of the COE to require mitigation is beyond
the scope of our authority to review, we must evaluate the
appropriateness of DEP's like requirement.
Even though there is no specific mention of environmental
mitigation or other environmental concerns in the WDA statutory
scheme, that Act has been administratively interpreted as having
the purpose "to promote the development and revitalization as well
as to safeguard the port facilities and waterfront resources for
the public's overall economic advantage." Op. Att'y Gen. No. 6
(1980). The Supreme Court, "recogniz[ing] that environmental
concerns are inextricably linked with the regulation of
commerce[,]" has endorsed the view, inter alia, that "environmental
damage to our coastal areas is detrimental to the state's four-
billion-dollar-per-year tourist industry." Last Chance Dev. P'ship
v. Kean,
119 N.J. 425, 435 (1990) (challenging DEP's regulations
adopted pursuant to the WDA). And, the Court foresaw the
promulgation of regulations "tying the development of adjacent
uplands to potential damage to the waterfront and water resources
of the State[.]" Id. at 435-36.
Indeed, DEP is entitled and expected to use more than one
statutory scheme when it promulgates "a single set of regulations
with the overlapping areas of flood hazards, water pollution, and
preservation of plant and animal life[.]" Society for Envtl. Econ.
Dev. v. New Jersey Dep't of Envtl. Prot.,
208 N.J. Super. 1, 8
(App. Div. 1985). Its regulations pertaining to environmental
mitigation were promulgated in this way. That is, DEP used the WDA
and other environmental acts to promulgate the Coastal Permit
Program Rules, N.J.A.C. 7:7-1.1 to -9.9, and the Rules on Coastal
Zone Management, N.J.A.C. 7:7E-1.1 to -8.21. See N.J.S.A. 12:5-3
(requiring all plans for the development of any waterfront property
on navigable water to be approved by DEP). The requirement for the
mitigation involved in this case is found in N.J.A.C. 7:7E-1.6(a),See footnote 1*
which states in part:
Mitigation shall be selectively
considered on a case-by-case basis as
compensation for the loss or degradation of a
particular natural resource. In general,
mitigation should be similar in type and
location to the resource disturbed, destroyed,
that is, replacement in kind within the same
watershed. The Program will, however,
consider proposals for mitigation that differ
in type and/or location from the disturbed or
destroyed resource provided the mitigation
would provide a major contribution to meeting
the Basic Location Policies (N.J.A.C. 7:7E-
1.5(b)1).
The declared rationale for this regulation is stated in N.J.A.C.
7:7E-1.6(b):
This rule is intended to conserve those
physical and biological values described under
applicable Special Area rules, while allowing
development consistent with acceptability
criteria. Use of this mitigation rule will
result in real gain, or no net loss of habitat
productivity or resource value.
Thus, there is ample basis for concluding, as we have, not only
that environmental mitigation serves the public interest, but also
that the agency charged with its implementation, DEP, has, as a
general matter, acted appropriately and adequately to promote it.
N.J.S.A. 27:7A-4.1 also provides that the Commissioner may
condemn the entire lot at issue "if, by so doing, the interests of
the public will be best served even though said entire lot, block
or tract is not needed for transportation purposes[.]" Defendant
asserts that the purposes of environmental mitigation are not
equivalent to transportation purposes. Yet, the statute defines
"transportation purposes" as "all uses of property which are, in
the judgment of the commissioner, useful or beneficial in promoting
an efficient, integrated, and balanced transportation system."
Although mitigation is strictly environmental in its nature, the
highway could not have been constructed without an environmental
mitigation. Therefore, the property at issue was realistically
needed for transportation purposes, and the choice to acquire it
cannot be seen to have been unreasonable or so unrelated to
legitimate objectives as to require invalidation.
Finally, the statute states that the Commissioner may acquire
the entire lot, block or tract of land "[i]n connection with the
acquisition of property or property rights for any limited access
highway or portion thereof[.]" We take defendant's argument in
this regard to suggest that this requirement has not been met
because the Commissioner did not acquire the property from the same
owners of the original rights-of-way for the project, and because
the Department moved to acquire the subject property long after it
had acquired those original rights-of-way from other owners.
Based on the legislative history of N.J.S.A. 27:7A-4.1 and a
fair interpretation of its plain language, we conclude that the
original rights-of-way are sufficiently related to the instant
parcel in acquisitional terms to satisfy statutory requirements.
In this connection, we reject defendant's assertion that N.J.S.A.
27:7A-4.1, in its current form, applies only to the uneconomic
remnants of parcels taken by the Commissioner. Although that might
have been the statute's design when it was first enacted in 1952,
the Legislature in 1989 broadened the condemnation powers
previously granted to the Commissioner.
The Legislature first enacted N.J.S.A. 27:7A-4.1 in 1952 as
part of the Limited Access Highway Act, L. 1952, c. 21, § 1,
granting the Commissioner the power to condemn the remnants of
parcels that had been condemned for highway purposes:
In connection with the acquisition of
property or property rights for any freeway or
parkway or portion thereof, the State Highway
Commissioner may, in his discretion, acquire
by gift, devise, purchase or condemnation, an
entire lot, block or tract of land, if, by so
doing, the interests of the public will be
best served even though said entire lot, block
or tract is not needed for the right-of-way
proper but only if the portion outside the
normal right-of-way is landlocked or is so
situated that the cost of acquisition to the
State will be practically equivalent to the
total value of the whole parcel of land;
provided, however, that the State Highway
Commissioner shall not have the power to
acquire by the exercise of the right of
eminent domain for any of the purposes of this
act any property or property rights owned or
used by any public utility as defined in
section 48:2-13 of the Revised Statutes.
(emphasis supplied)
These terms are almost identical to a provision in N.J.S.A.
27:7-22.6 which was enacted in 1967, and which currently controls
the Commissioner's power to condemn uneconomic remnants of land.
N.J.S.A. 27:7-22.6 is designated as "An Act to enable the
Commissioner of Transportation to acquire uneconomic remnants of
lands and rights therein and supplementing chapter 7 of Title 27 of
the Revised Statutes." L. 1967, c. 55.
In two cases applying N.J.S.A. 27:7A-4.1 in its original form,
we held that the Commissioner could have used that statute to
condemn the non-economic remnants of a parcel of land in order to
give access to neighboring landlocked properties. In State Highway
Comm'r v. Buck,
94 N.J. Super. 84, 86-87 (App. Div.), certif.
denied,
49 N.J. 359 (1967), appeal dismissed,
389 U.S. 571,
88 S.
Ct. 693,
19 L. Ed.2d 780 (1968), the Commissioner condemned an
entire parcel so that a neighboring property would have access to
the highway and not be landlocked, rather than leaving a borderline
strip too small to be in compliance with the existing residential
zoning ordinance. We relied on N.J.S.A. 27:7A-4.1 to affirm the
Commissioner's action, concluding that "[r]ather than leave a land
segment useless under local zoning and subject the State to payment
of damages incident to unacquired remainder land, the Commissioner
made a sound and sensible decision to condemn the entire tract at
a practically equivalent cost, especially when in so doing he
preserved accessibility to adjoining lands which have an apparent
potential for development." Id. at 88. The court declared that
"the controlling question [was] whether the paramount reason for
taking land to which objection is made is in the public interest."
Ibid.
In State Highway Comm'r v. Davis,
87 N.J. Super. 377, 378
(App. Div.), certif. denied,
46 N.J. 135 (1965), the Commissioner
acquired land from the defendant to build a highway. Thereafter,
the Commissioner acquired another parcel of the defendant's
property in order to build an access road to the landlocked
property of defendant's neighbors. Id. at 378-79. The only issue
in that case was whether the Commissioner's later acquisition by
condemnation to free landlocked properties was for a proper public
use as distinguished from an impermissible private use. Id. at
378. We validated the acquisition.
In 1989, the Legislature amended N.J.S.A. 27:7A-4.1 in several
particulars, including deleting the phrase "even though said entire
lot, block or tract is not needed for the right-of-way
proper . . ." and substituting the phrase "even though said entire
lot, block or tract is not needed for transportation purposes."
L. 1989, c. 32, § 17. That amendment was part of the Legislature's
sweeping changes to the Limited Access Highway Act, broadening the
Commissioner's power of condemnation.
The legislative history for the 1989 amendments does not
specifically address the Commissioner's condemnation powers or, in
particular, the changes to N.J.S.A. 27:7A-4.1. Nevertheless, it is
clear that the Legislature on the whole intended to broaden the
Commissioner's powers to construct and designate limited access
highways and to limit, improve or exclude access to state highways.
Thus, based on the comprehensive amendments of the Limited
Access Highway Act in 1989, on the legislative history, and on the
plain language of the current version of N.J.S.A. 27:7A-4.1, we
conclude, in the light of the Commissioner's broadened powers, that
there is no express or implied requirement in the statute that the
Commissioner acquire the properties involved from the same owner or
at the same time. Although not pertinent to the actual holding,
Davis, supra, also concerned the acquisition of two separate
parcels at different times. See 87 N.J. Super. at 378-79. There,
the State, for construction of Interstate Highway 287, had acquired
a parcel owned by the defendant. Sometime thereafter, the State
proposed to acquire by condemnation "another portion of
defendant's property . . . in conjunction with lands acquired from
other owners, to build a roadway" for access to other properties
that had become landlocked. Ibid. We suggested in dictum that the
State could have used N.J.S.A. 27:7A-4.1, implying that that
statute, even then, in 1965, authorized the acquisition of separate
properties and not only remnants. Id. at 380-81.
Moreover and more generally, public bodies have traditionally
been given discretion in determining the quantity of land to be
taken, its location and the time of taking. Burnett v. Abbott,
supra, 14 N.J. at 294; accord New Jersey Highway Auth. v. Currie,
35 N.J. Super. 525 (App. Div. 1955). The exercise of that
discretion will not be upset by the courts in the absence of an
affirmative showing of fraud, bad faith or manifest abuse. City of
Trenton v. Lenzner,
16 N.J. 465, 473 (1954), cert. denied,
348 U.S. 972,
75 S. Ct. 534,
99 L. Ed. 757 (1955).
Among the other reasons to reject the arguments defendant has
offered which we have dealt with as additional bases for affirming
the trial court's decision, we note that N.J.A.C. 7:7E-1.6(a)
authorizes environmental mitigation to be considered on "a case-by-
case basis" and provides that the acquisition need not be similar
in type and location to the resource disturbed. It also provides
that affected individuals are entitled to bring challenges to
various types of permits issued by DEP.
Hence, we conclude for reasons in addition to those
articulated by the trial court for validating the condemnation,
that the Commissioner had the authority to condemn appellant's
property under the Limited Access Highway Act, in particular
N.J.S.A. 27:7A-4.1.
Affirmed.
Footnote: 1 * The mitigation requirements of N.J.A.C. 7:7A-14.2, cited by defendant, apply to mitigation for freshwater wetland permits, see N.J.A.C. 7:7A-1.1, clearly not implicated here.