SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-3709-94T3
THE CITY OF ATLANTIC CITY,
a Municipal Corporation,
Plaintiff-Respondent,
v.
CYNWYD INVESTMENTS, a
Pennsylvania Partnership,
SQUARE BRIGHTON CORPORATION,
INC., a New Jersey Corporation,
and GREATE BAY HOTEL AND
CASINO, INC., t/a SANDS HOTEL &
CASINO, a New Jersey Corporation,
Defendants-Respondents,
and
CORE STATES NJ NATIONAL BANK,
ATLANTIC CITY ELECTRIC COMPANY,
t/a ATLANTIC ELECTRIC, a New Jersey
Corporation, and THE STATE OF NEW
JERSEY,
Defendants,
and
BOARDWALK REGENCY CORPORATION,
a New Jersey Corporation,
Defendant-Appellant.
________________________________________
A-3782-94T3
THE CITY OF ATLANTIC CITY,
a Municipal Corporation,
Plaintiff-Respondent,
v.
CYNWYD INVESTMENTS, a
Pennsylvania Partnership,
GREATE BAY HOTEL AND CASINO,
INC., t/a SANDS HOTEL & CASINO,
a New Jersey Corporation, and
BOARDWALK REGENCY CORPORATION, a
New Jersey Corporation,
Defendants-Respondents,
and
CORE STATES NJ NATIONAL BANK,
ATLANTIC CITY ELECTRIC COMPANY,
t/a ATLANTIC ELECTRIC, a New
Jersey Corporation, and THE STATE
OF NEW JERSEY,
Defendants,
and
SQUARE BRIGHTON CORPORATION, INC.,
a New Jersey Corporation,
Defendant-Appellant.
________________________________________
Argued January 23, 1996 - February 22, 1996
Before Judges Michels, Villanueva, and Kimmelman.
On appeal from the Superior Court of New
Jersey, Law Division, Atlantic County.
Lloyd D. Levenson argued the cause for
appellant Boardwalk Regency Corporation
in A-3709-94T3 (Cooper Perskie April Niedelman
Wagenheim & Levenson, attorneys; Mr.
Levenson, on the brief).
Edward N. FitzPatrick argued the cause for
appellant Square Brighton Corporation,
Inc. in A-3782-94T3 (DeCotiis, FitzPatrick
& Gluck, attorneys; Mr. FitzPatrick and
Patrick T. McGahn, Jr., of counsel; Agnes
I. Rymer, on the brief).
Daniel A. Corey, City Solicitor,
argued the cause for respondent City of
Atlantic City in both appeals (Mr. Corey and
John M. Eccles, Jr., on the briefs).
John H. Rosenberger argued the cause for
respondent Cynwyd Investments in both
appeals (Perillo and Rosenberger,
attorneys; Mr. Rosenberger, on the brief).
Stephen R. Nehmad argued the cause for
respondent Greate Bay Hotel and Casino, Inc.
in both appeals (Perskie & Nehmad,
attorneys; Mr. Nehmad, of counsel;
Richard F. DeLucry, on the briefs).
The opinion of the court was delivered by
KIMMELMAN, J.A.D. (temporarily assigned).
In separate appeals which have been consolidated for the
purpose of argument and decision, defendant Square Brighton
Corporation, Inc. (Square Brighton) and defendant Boardwalk Regency
Corporation (BRC) appeal from an order entered March 17, 1995,
upholding the condemnation complaint filed by plaintiff City of
Atlantic City (City) and sanctioning the City's right to exercise
its power of eminent domain to acquire the 16' strip of land in
question. Square Brighton and BRC both contend that the City's
condemnation complaint failed to comply with the Eminent Domain Act
of 1971, N.J.S.A. 20:3-1 to -50, specifically with the provisions
of N.J.S.A. 20:3-6, and, therefore, should have been dismissed.
Similarly, it is urged that the City failed to comply with the
provisions of R. 4:73-1, which is the functional equivalent of
N.J.S.A. 20:3-6. Assignment Judge Richard J. Williams, in a
thorough and well-documented oral opinion, refused to dismiss the
City's condemnation complaint and upheld the right of the City to
exercise the power of eminent domain in this case. We affirm.
By way of factual background, the property condemned is a 16'
strip located at the northerly (farthest from the boardwalk) end of
property leased by BRC (a subsidiary company of the Caesar's
Casino) from the fee owner Cynwyd Investments (Cynwyd), a principal
defendant in this litigation. The 16' strip amounts to
approximately two percent of the entire leased property. The
leased property was formerly the site of the Traymore Hotel and is
adjacent to the boardwalk between Illinois Avenue and Indiana
Avenue. BRC, in turn, subleases the property to Square Brighton
which operates the property as a parking lot. The 16' strip was
intended to be dedicated to the City for use as a part of a public
thoroughfare now known as Pop Lloyd Boulevard when the Caesar's
casino interests intended to build on the Traymore site some years
ago. No building took place on the Traymore site. The 16' strip
was not dedicated to the use of the City but instead was sublet as
part of the entire Traymore site to Square Brighton. However, the
16' strip nevertheless did become a portion of Pop Lloyd Boulevard
and has been so used for perhaps ten or more years. Defendant
Greate Bay Hotel and Casino, Inc. (Sands) has been paying an annual
rental to Square Brighton for use of the 16' strip even though, as
indicated, it forms a portion of a public thoroughfare.
In 1991, Sands instituted an action in lieu of prerogative
writs against the City to compel the condemnation of the 16' strip.
BRC and Square Brighton intervened as defendants in that litigation
and later became defendants. The case came on for trial during the
summer of 1994. Before decision, Sands and the City entered into
a settlement whereby the City agreed to condemn the 16' strip and
Sands agreed to pay for the entire cost of the acquisition and the
expenses of the condemnation litigation. Shortly thereafter, the
Council of the City of Atlantic City adopted Ordinance 61 which
approved and incorporated the provisions of the settlement and
directed the City to acquire the 16' strip. Square Brighton filed
an action in lieu of prerogative writs challenging the validity of
Ordinance 61. Its validity was upheld by the Law Division, and
that decision was appealed and argued before this panel on the same
day as the within consolidated appeal.See footnote 1
Following the adoption of Ordinance 61, the City engaged in
negotiations with Cynwyd, the record owner of the fee simple title,
to acquire the 16' strip. The parties agreed upon an acquisition
price of $625,000. While not determinative of the within appeal,
it is interesting to note that in 1994, the Atlantic County Board
of Taxation rendered a judgment which values the 16' strip at
approximately $532,000. During the tax appeal process, BRC valued
the property at substantially less. The agreed upon acquisition
price is approximately $100,000 in excess of the valuation fixed
for tax assessment purposes.
Having set forth the foregoing factual background, we address
the nub of the controversy, which is whether the condemnation
complaint was facially defective for failure to comply with the
letter of N.J.S.A. 20:3-6. The statute provides:
Whenever any condemnor shall have
determined to acquire property pursuant to
law, including public property already devoted
to public purpose, but cannot acquire title
thereto or possession thereof by agreement
with a prospective condemnee, whether by
reason of disagreement concerning the
compensation to be paid or for any other
cause, the condemnation of such property and
the compensation to be paid therefor, and to
whom payable, and all matters incidental
thereto and arising therefrom shall be
governed, ascertained and paid by and in the
manner provided by this act; provided,
however, that no action to condemn shall be
instituted unless the condemnor is unable to
acquire such title or possession through bona
fide negotiations with the prospective
condemnee, which negotiations shall include an
offer in writing by the condemnor to the
prospective condemnee holding the title of
record to the property being condemned,
setting forth the property and interest
therein to be acquired, the compensation
offered to be paid and a reasonable disclosure
of the manner in which the amount of such
offered compensation has been calculated, and
such other matters as may be required by the
rules. Prior to such offer the taking agency
shall appraise said property and the owner
shall be given an opportunity to accompany the
appraiser during inspection of the property. .
. . When the holder of the title is unknown,
resides out of the State, or for other good
cause, the court may dispense with the
necessity of such negotiations. . . .
[N.J.S.A. 20:3-6 (emphasis added).]
According to the plain wording of the quoted section, where there is a disagreement with the prospective condemnee holding the title of record to the property being condemned concerning the compensation to be paid or for any other cause, there must be bona fide negotiations with the prospective condemnee which shall include an offer in writing describing the property to be acquired and the compensation offered. Prior to such offer, the taking
agency shall appraise the property. But, it is specifically
provided that for good cause, the court may dispense with the
necessity of such negotiations. We are satisfied that good cause
was amply shown before Judge Williams. In the condemnation
complaint, it is alleged that negotiations have taken place with
Cynwyd, the "condemnee holding title of record," and that Cynwyd
has agreed to accept $625,000 as compensation. Cynwyd has
acknowledged the negotiations and agreement as to price both before
the trial court and to this court.
Thus, the negotiations and offer required by N.J.S.A. 20:3-6
for the benefit of the prospective condemnee are unnecessary as
having already taken place. Cynwyd waives compliance with the
letter of the statute as a needless technicality. Tp. of Millburn
v. Pitt,
68 N.J. 424, 427 (1975), specifically holds that where the
condemnee has waived all statutory procedural matters, as here, the
condemning authority need not comply with the pre-condemnation
procedural safeguards embodied in N.J.S.A. 20:3-6.
The legislative history leading to the enactment of the
Eminent Domain Act of 1971 and the pertinent portions of the report
of the Eminent Domain Revision Commission have been set forth by
this court in Borough of Rockaway v. Donofrio,
186 N.J. Super. 344,
350-51 (App. Div. 1982). There, we viewed that the purpose of
N.J.S.A. 20:3-6 was to enable entities with condemnation powers to
make acquisitions without litigation by affording the proposed
condemnee in advance of the institution of proceedings the
safeguards built into the statute. Id. at 353. When those
safeguards have been afforded to the prospective condemnee and
there is no impasse between the parties, the procedural safeguards
built into N.J.S.A. 20:3-6 have been met by agreement of the
parties and need not be recounted in the condemnation complaint.
Cf. Tp. of Millburn, supra, 68 N.J. at 427. Strict compliance with
the statute and with R. 4:73-1 may be waived where the prospective
condemnee has not been prejudiced. See Monmouth County v.
Whispering Woods at Bamm Hollow, Inc.,
222 N.J. Super. 1, 7 (App.
Div. 1987), certif. denied,
110 N.J. 175 (1988).
In this case, the condemnation complaint was filed not because
of any disagreement with Cynwyd but rather because of other
interests affecting title, all as set forth in paragraph 5 of the
complaint which makes reference to the lessee BRC, the subtenant
Square Brighton, the mortgagee, and easement holders.
In short, this court will not engage in a strained and over-technical construction of N.J.S.A. 20:3-6 to upset what appears to
be a proper and bona fide condemnation, notwithstanding a charge by
appellants' counsel that the condemnation is ostensibly favorable
to the Sands casino interests. The legislative intent supportive
of the statute has been met and fulfilled by the negotiations that
have taken place between the City and Cynwyd. The common sense of
this case in view of the factual circumstances requires a practical
rather than unnecessarily strict adherence to what ordinarily would
be the technical requirements of N.J.S.A. 20:3-6. See Suter v. San
Angelo Foundry & Mach. Co.,
81 N.J. 150, 160 (1979); Jersey City
Chapter of Property Owner's Protective Ass'n v. City Council,
55 N.J. 86, 100 (1969)
Should the trial court determine that BRC or Square Brighton
or both have a right to share in the condemnation award, the
Eminent Domain Act of 1971 and rules of court provide the procedure
to be followed in such event.
We affirm the order of March 17, 1995, substantially for the
reasons set forth by Assignment Judge Williams in his oral opinion
of February 21, 1995, as herein supplemented.
Footnote: 1 Today we are filing a separate opinion in Square Brighton Corporation, Inc. v. The City of Atlantic City, No. A-1940-94T2, upholding the validity of Atlantic City Ordinance 61.