THE CEREBRAL PALSY CENTER,
BERGEN COUNTY, INC., TRADING
AS CHILDREN'S THERAPY CENTER,
Plaintiff-Appellant,
v.
MAYOR AND COUNCIL OF THE BOROUGH
OF FAIR LAWN, BOROUGH OF FAIR
LAWN, and FAIR LAWN ZONING BOARD
OF ADJUSTMENT,
Defendants-Respondents.
____________________________________
Argued December 1, 2004 - Decided January 27, 2005
Before Judges Wefing, Fall and Payne.
On appeal from Superior Court of New
Jersey, Law Division, Bergen County,
BER-L-2820-03.
Andrew J. Karas argued the cause for
appellant (Feitlin, Youngman, Karas
& Youngman, attorneys; Mr. Karas, on
the brief).
Richard A. Lustgarten argued the cause
for respondent Mayor and Council of the
Borough of Fair Lawn and Borough of Fair
Lawn.
Respondent Fair Lawn Zoning Board of
Adjustment relies on the brief submitted
by respondent Mayor and Council of the Borough
of Fair Lawn and the Borough of Fair Lawn
(Robert C. Matule, attorney).
Lloyd H. Tubman argued the cause for
amicus curiae New Jersey Chapter of
National Association of Industrial and
Office Properties (Greenbaum, Rowe,
Smith, Ravin, Davis & Himmel, attorneys;
Mr. Tubman, of counsel and on the brief;
Steven Firkser, on the brief).
William F. Hyland, Jr., argued the cause for
amicus curiae New Jersey Builders Association
(Ballard Spahr Andrews & Ingersoll, attorneys;
Richard M. Hluchan, of counsel; Mr. Hyland,
Michelle A. Ducellier, and Lauren A. Beetle, on
the brief).
The opinion of the court was delivered by
WEFING, P.J.A.D.
Plaintiff, The Cerebral Palsy Center, Bergen County, Inc., trading as Children's Therapy Center
("Center"), appeals from the trial court order dismissing its complaint in which it
challenged the legality of a Fair Lawn ordinance. After reviewing the record in
light of the contentions advanced on appeal, we reverse.
Fair Lawn has adopted an ordinance, § 125-60.1 of the Land Development chapter of
its municipal code, establishing the position of Public Advocate, to be appointed by
the municipal council. Fair Lawn Code, § 125-60.1 (July 15, 2000). The ordinance creates
separate positions of Public Advocate for Fair Lawn's Planning Board and its Zoning
Board of Adjustment. Because the ordinance gives each position identical responsibility and authority,
there is no need to distinguish between the two in our analysis of
the issues.
Under Subsection C of the ordinance, the Public Advocate is authorized to appear
before the respective boards, as well as before other federal, state, county and
municipal courts and agencies "in proceedings of substantial public importance in which he
or she shall determine, in his or her sole discretion, subject to this
section, to warrant representation and advocacy." § 125-60.1(C).
Subsection E of the ordinance defines matters of substantial public importance in the
following manner.
(1) Substantial public importance shall be defined or limited to applications where the
applicant is seeking relief in any one of the following areas, provided that
the application also affects the health, safety or general welfare of the Borough
of Fair Lawn or its population:
(a) Applicant is seeking a use variance.
(b) Applicant is seeking a major subdivision.
(c) Applicant seeks three or more variances.
(d) Applicant seeks a variance for parking.
(e) Applicant seeks a variance within a SID.
(f) Application of any nature involving property which is contiguous to or proximate to
land located in any district adjoining parkland, wetlands or a facility owned by
the municipality or the Board of Education.
(g) Any application in which the applicant seeks to vacate a street, road, right- of-way
or similarly defined thoroughfare.
(h) Any application in which the applicant seeks to create a street, road, right- of-way
or similarly defined thoroughfare, even if on private property not then to be
made a borough street or road.
(i) Application where a variance for density is being sought.
(j) Application that has been bifurcated, where one part of the bifurcated application seeks
relief set forth in these subparagraphs.
[§ 125-60.1(E).]
The stated purpose of the ordinance, according to subsection H, is
to ensure that a full, fair and balanced record be made in such
matters of substantial public importance . . . so that such Boards .
. . will have the benefit of a fully developed record of the
proceedings containing all of the testimony and evidence of a fair, unbiased and
impartial decision . . . and to ensure that the public interest, and
not individual interests, will be adequately represented and better served.
[§ 125-60.1(H).]
In subsection G of the ordinance, the council noted its intent that the
"resources of the Public Advocate be devoted to the maximum extent possible to
ensuring adequate representation of the interests of those residents whose interests would otherwise
be inadequately represented . . . ." § 125-60.1(G).
Subsection C of the ordinance directs the Public Advocate to
review applications initially determined by objective criteria to potentially involve the Public Advocate;
review and prepare documents and inspections of developments under construction to the extent
that this section determines it to be beyond the scope of the expertise
of the professionals normally utilized by the municipality . . . .
[§ 125-60.1(C).]
This subsection also includes the following provision:
To the extent that such Public Advocate is required to review applications, prepare
documents or otherwise perform services, it shall be at the cost and expense
of the applicant and determined by multiplying the Public Advocate's hourly rate, which
shall be established annually by ordinance, times the number of reasonable and necessary
hours spent by the Public Advocate for such services.
[Ibid.]
Finally, subsection J of the ordinance authorizes the Public Advocate to "employ expert
witnesses and pay appropriate compensation and expenses to employ the witnesses." § 125-60.1 (J).
The Center is a non-profit corporation that provides physical therapy and educational services
to children afflicted with cerebral palsy. It owns and operates a facility located
in an R1-1 zone in Fair Lawn pursuant to a use variance it
obtained in 1986. In September 2002 it filed an application seeking use and
bulk variances to permit it to construct an addition to its facility. It
sought the following variances: 1) to expand a non-conforming use; 2) to permit
fifty-two parking spaces, instead of the eighty-three required; 3) to permit building coverage
of 25.68%, as opposed to the 25% permitted; and 4) to permit impervious
coverage of 33.20% as opposed to the 30% permitted. The Center included with
its application the $900 filing fee and an escrow deposit of $3,500 toward
the costs of reviewing its application. See N.J.S.A. 40:55D-53.2; Flama Const. Corp. v.
Tp. of Franklin,
201 N.J. Super. 498 (App. Div. 1985) (holding municipality may
require filing fees to be paid into escrow to cover the cost of
reviewing application).
The Zoning Board of Adjustment conducted hearings on the Center's application on various
dates between November 2002 and April 2003. The Public Advocate appointed for the
Board participated in those hearings and, as part of that participation, retained experts
to review traffic and drainage issues with regard to the Center's application.
In late January 2003 the Public Advocate submitted an invoice for $1,485, for
his services to date. The Center's counsel responded, objecting that the municipality had
no authority to impose those fees upon his client. On March 3, 2003,
the Board approved the invoices submitted on behalf of the experts retained by
the Public Advocate to review and comment upon the application; their combined fees
exceeded $16,000. On March 5, 2003, the Board notified the Center that it
was required to make a further deposit to its escrow account to cover
these fees and that a failure to do so would result in a
dismissal without prejudice of its application.
On April 17, 2003, the Center filed an order to show cause and
a complaint in lieu of prerogative writs challenging the fee-shifting provisions of Fair
Lawn's ordinance. In conjunction with the order to show cause and complaint, the
Center filed the certification of its executive director, who noted that the fee
of the expert hired by the Public Advocate to perform drainage calculations nearly
matched the fee the Center paid to its own expert to design the
project and testify in support of the application. The parties thereafter agreed to
a consent order under which the Center agreed to post the required escrow
amounts, without prejudice to its right to contest the ordinance, and the Board
would proceed to hear the merits of the Center's application in the normal
course. The order also contained a schedule for determining the matter by way
of summary judgment. By the time the motion for summary judgment was argued,
the Public Advocate estimated his total fees and expenses would exceed $20,000. After
briefing and oral argument, the trial court issued a written opinion in which
it upheld the Fair Lawn ordinance.
The Center has appealed from the trial court order. Two amici have joined
in the Center's challenge - New Jersey Builders Association and the New Jersey
chapter of National Association of Industrial and Office Properties. The arguments on appeal
are not addressed to the authority of the municipality in the first instance
to create the position of Public Advocate. That authority was upheld in Township
of Berkeley Heights v. Board of Adjustment,
144 N.J. Super. 291, 301 (Law
Div. 1976), and noted in Paruszewski v. Township of Elsinboro,
154 N.J. 45,
60-61 (1998). Their arguments focus, rather, on the fee-shifting provisions of the Fair
Lawn ordinance, under which the applicant is not only responsible for the fees
incurred by the particular board reviewing a particular application but must also shoulder
the fees of the Public Advocate and the experts the advocate retains. After
reviewing the record, we find it unnecessary to address those aspects of their
respective arguments which challenge the fee-shifting provisions of this ordinance on constitutional and
public policy grounds because we are satisfied that such provisions are fundamentally inconsistent
with N.J.S.A. 40:55D-53.2 and, accordingly, are invalid.
The power to zone is an exercise of the police power. Riggs v.
Tp. of Long Beach,
109 N.J. 601, 610 (1988)(setting aside the rezoning of
certain waterfront property to a lower density to reduce its value prior to
condemnation). A municipality possesses and can exercise that zoning authority only to the
extent the Legislature has delegated it. Ibid. A zoning board of adjustment "may
exercise only those powers granted by statute." Paruszewski, supra, 154 N.J. at 54
(emphasis in original). Acordingly, the validity of a municipal land use ordinance is
governed by and measured under the Municipal Land Use Law, N.J.S.A. 40:55D-1 to
-136. Rumson Estates v. Mayor of Fair Haven,
177 N.J. 338, 351 (2003).
A "zoning ordinance must foster at least one of the stated purposes" of
the Municipal Land Use Law. Id. at 350.
N.J.S.A. 40:55D-53.2 contains detailed directions regarding "payments to professionals for services rendered to
the municipality or approving authority for review of applications for development, review and
preparation of documents, inspection of improvements or other purposes." All payments for such
services have to be "based upon a schedule established by resolution." N.J.S.A. 40:55D-53.2(a).
The statute specifies:
The application review and inspection charges shall be limited only to professional charges
for review of applications, review and preparation of documents and inspections of developments
under construction and review by outside consultants when an application is of a
nature beyond the scope of the expertise of the professionals normally utilized by
the municipality. The only costs that shall be added to any such charges
shall be actual out-of-pocket expenses of any such professionals or consultants including normal
and typical expenses incurred in processing applications and inspecting improvements. The municipality or
approving authority shall not bill the applicant, or charge any escrow account or
deposit authorized under subsection b. of this section, for any municipal, clerical, or
administrative functions, overhead expenses, meeting room charges, or any other municipal costs and
expenses except as provided for in this section, nor shall a municipal professional
add any such charges to his bill. If the salary, staff support and
overhead for a municipal professional are provided by the municipality, the charge shall
not exceed 200% of the sum of the products resulting from multiplying (1)
the hourly base salary, which shall be established annually by ordinance, of each
of the professionals by (2) the number of hours spent by the respective
professional upon review of the application for development or inspection of the developer's
improvements, as the case may be. For other professionals the charge shall be
at the same rate as all other work of the same nature by
the professional for the municipality when fees are not reimbursed or otherwise imposed
on applicants or developers.
[Ibid.]
The statute sets forth the requirements for establishing the amounts that can be
paid from the escrow account. For each payment requested from that escrow account,
professionals must submit a voucher to the municipality's chief financial officer, with a
copy to the applicant, identifying who performed the service, each date the services
were performed, the hours spent to one-quarter hour increments, the hourly rate, and
the expenses incurred. N.J.S.A. 40:55D-53.2(c). If a municipal employee provides the particular services,
that employee must prepare and submit a monthly statement containing the same information.
Ibid. The chief financial officer must prepare and send to the applicant an
accounting of the escrow account's deposits, disbursements and cumulative balance, on a monthly
basis if the monthly charges exceed $1,000, or on a quarterly basis if
the monthly charges are less than $1,000. Ibid. The statute also contains procedures
for closing the escrow account. N.J.S.A. 40:55D-53.2(d).
The statute's final two paragraphs are aimed at limiting the amount of fees
that may be charged to an applicant.
e. All professional charges for review of an application for development, review and
preparation of documents or inspection of improvements shall be reasonable and necessary, given
the status and progress of the application or construction. Review fees shall be
charged only in connection with an application for development presently pending before the
approving authority or upon review of compliance with conditions of approval, or review
of requests for modification or amendment made by the applicant. A professional shall
not review items which are subject to approval by any State governmental agency
and not under municipal jurisdiction except to the extent consultation with a State
agency is necessary due to the effect of State approvals in the subdivision
or site plan. Inspection fees shall be charged only for actual work shown
on a subdivision or site plan or required by an approving resolution. Professionals
inspecting improvements under construction shall charge only for inspections that are reasonably necessary
to check the progress and quality of the work and such inspections shall
be reasonably based on the approved development plans and documents.
f. If the municipality retains a different professional or consultant in the place
of the professional originally responsible for development, application review, or inspection of improvements,
the municipality or approving authority shall be responsible for all time and expenses
of the new professional to become familiar with the application or the project,
and the municipality or approving authority shall not bill the applicant or charge
the deposit or the escrow account for any such services.
[N.J.S.A. 40:55D-53.2(e) and (f).]
We reject Fair Lawn's contention that its power to enact these fee-shifting portions
of this ordinance may be found either expressly in N.J.S.A. 40:55D-53.2 or fairly
implied thereunder. We have previously set forth in detail the structure of N.J.S.A.
40:55D-53.2. The statute by its terms is clearly limited to professional fees for
services "rendered to the municipality or an approving authority." N.J.S.A. 40:55D-53.2(a). The statute
was adopted almost twenty years after judicial approval of the concept of a
municipal public advocate, Township of Berkeley Heights, supra, and yet the Legislature made
no attempt to authorize the imposition of the fees and expenses of such
a public advocate upon an applicant seeking land use approval within a municipality.
Nothing within the statute's explicit language can be read to contain an express
power to require an applicant to pay for the services of a public
advocate to review and comment upon an application.
Nor do we consider that such a power can be fairly implied. We
recognize, of course, that a municipality's powers "shall include not only those granted
in express terms but also those of necessary or fair implication, or incident
to the powers expressly conferred, or essential thereto, and not inconsistent with or
prohibited by this Constitution or by law." N.J. Const. art. IV, § 7, ¶ 11.
Thus, the Legislature has conferred broad powers upon municipalities to adopt ordinances they
deem
[n]ecessary and proper for the good government, order and protection of persons and
property, and for the preservation of the public health, safety and welfare of
the municipality and its inhabitants . . . .
[N.J.S.A. 40:48-2.]
Ordinances are presumed to be valid and reasonable. Hutton Park Gardens v. Town
Council,
68 N.J. 543, 564 (1975). The underlying policy and wisdom of a
particular ordinance is the responsibility of the enacting municipal body, not the court
reviewing it. Rumson Estates, supra, 177 N.J. at 350; Quick Chek Food Stores
v. Tp. of Springfield,
83 N.J. 438, 447 (1980).
Nonetheless, we consider it inescapable that the fee-shifting portions of Fair Lawn's ordinance
run counter to the legislative goals of N.J.S.A. 40:55D-53.2. The sponsor's statement and
Assembly Housing Committee Statement to Assembly Bill No. 518, the bill embodying the
statute's current language, stated: "This bill attempts to balance the municipality's need for
expert and professional advice in the review of applications . . . with
the need for controlling municipal professional fees." Statement A-518; Assembly Housing Committee Statement
to A-518 (March 7, 1994). Both statements also pointed out that the bill
"places limits on the charges against the deposits and escrow accounts of applicants
by municipal professionals and consultants[.]" Similarly, the Senate Community Affairs Committee Statement to
the bill described it as amending the Municipal Land Use Law by "placing
limitations upon charges against deposits and escrow accounts of applicants established to cover
the costs of the review and preparation of documents by municipal professionals and
consultants[.]" Senate Community Affairs Committee, Statement to A-518 (February 6, 1996). This statute's
legislative history clearly enunciates the goals of the Legislature in enacting this bill.
The fee-shifting technique adopted by Fair Lawn in this ordinance can serve only
to increase the cost of applying for land-use approvals within the municipality while
the purpose behind the statute was, as we have noted, to limit and
control those expenses. The ordinance is thus fundamentally at odds with the statute.
We consider Fair Lawn's reliance on D.L. Real Estate Holdings v. Point Pleasant
Beach Planning Board,
176 N.J. 126 (2003) to be unavailing. In that case,
the Supreme Court upheld a municipal ordinance that required that an application for
final subdivision approval be filed within three years of the grant of preliminary
subdivision approval. Id. at 128. The ordinance also provided, on application, for two
one-year extensions of that three-year deadline. Ibid. In upholding that ordinance, the Court
noted that its terms essentially mirrored N.J.S.A. 40:55D-49 and were not at all
inconsistent with the purposes of the Municipal Land Use Law. Id. at 133-34.
In our judgment, the Court's opinion in D.L. provides no basis to uphold
the ordinance provisions challenged before us.
The order under review is reversed.