SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-6289-00T3
THE SPINNAKER CONDOMINIUM
CORPORATION,
Plaintiff-Appellant/
Cross-Respondent,
v.
ZONING BOARD OF THE CITY
OF SEA ISLE CITY,
Defendant-Respondent/
Cross-Appellant,
and
CITY OF SEA ISLE CITY,
Defendant.
Argued December 2, 2002 - Decided January 23,
2003
Before Judges Havey, Wells and Payne.
On appeal from Superior Court of New Jersey,
Law Division, Cape May County, Docket Number
L-785-99.
Norman L. Zlotnick argued the cause for
appellant/cross-respondent (Mairone, Biel,
Zlotnick & Feinberg, attorneys; Mr. Zlotnick
and Rosemary A. Cain-Wallace, on the brief).
Ellen Nicholson Byrne argued the cause for
respondent/cross-appellant (Ms. Nicholson
Byrne, on the brief).
The opinion of the court was delivered by
HAVEY, P.J.A.D.
Plaintiff, the Spinnaker Condominium Corporation
(Spinnaker), leased space on its roof to Sprint Spectrum L.P.
(Sprint) for the location of nine antennae and related equipment,
the purpose of which was to provide wireless telecommunication
services to Sprint's customers. Sprint applied to defendant
Zoning Board of the City of Sea Isle City for a conditional-use
variance, N.J.S.A. 40:55D-70d(3), in order to construct the
facility. The application was denied. Sprint declined to
appeal, having found an alternate site for its facility.
Spinnaker filed this action in lieu of prerogative writs
challenging the Board's denial.
By judgment dated May 10, 2001, the trial court upheld the
Board's action. However, the court deleted that portion of the
judgment, prepared by the Board's attorney, addressing the
dismissal of Spinnaker's complaint based on its lack of standing
to appeal. Spinnaker now appeals the trial court's affirmance of
the Board's action. The Board cross-appeals, arguing that
Spinnaker's complaint should have been dismissed for lack of
standing. We agree with the City that Spinnaker had no standing
to challenge the Board's denial, and therefore reverse.
Since we are reversing on standing grounds, we need not
recite the facts at length. Suffice it to say that on November
5, 1998, Spinnaker and Sprint entered into a written agreement
under which Sprint leased exterior building space on the roof of
the condominium complex for installation of up to nine antennae
and supporting equipment. Sprint's application for a zoning
permit was denied on the basis that the application failed to
meet the conditions of Ordinance No. 1038, which governed the use
of ground-mounted television satellite dishes. Sprint applied
for a variance. With the agreement of the Board's attorney,
Sprint's application to the Board was treated as seeking a
conditional-use variance under N.J.S.A. 40:55D-70d(3). As we
understand it, the two "conditional-use" standards not met by
Sprint pertained to the number of antennae proposed, and the
condition that all satellite dish structures be on ground level.See footnote 11
During the Board hearing, Sprint's experts described its
wireless telecommunications system, the range of its existing
facilities and the presence of "service gaps" in the Sea Isle
City area. The Board's resolution denying the application
offered no analysis of the proofs under the standards applicable
to conditional-use variances. See Cell South of New Jersey, Inc.
v. Zoning Bd. of Adjustment,
172 N.J. 75, 85-87 (2002); Coventry
Square, Inc. v. Zoning Bd. of Adjustment,
138 N.J. 285, 298-99
(1994). Nevertheless, Sprint did not appeal the decision
because it subsequently entered into a long-term lease with the
City to install its antennae on the City's water tower.
The trial court upheld the Board's denial, concluding that
the decision was not arbitrary because it was reasonably based on
the Board's concern with the aesthetic impact of the antennae on
the surrounding area. It also observed that the Board "was
aware" of Spinnaker's location and had "referenced the fact that
Spinnaker was not the ideal location for the antennae." The
court also appeared to be persuaded by the Board's argument that
Spinnaker had no standing to appeal. The court disagreed with
Spinnaker's claim that if the Board's decision were reversed and
the variance were approved, another telecommunications provider
that leased from Spinnaker could install its equipment as a
permitted use. It observed that zoning board decisions are based
upon the specific facts of each zoning application, and that any
new lease with another telecommunications provider would require
a new application. However, for reasons that are unclear, the
trial court deleted that portion of the judgment providing for
dismissal of Spinnaker's complaint for lack of standing.
We address only the standing issue raised by the Board's
cross-appeal.
Rule 4:26-1 provides that "[e]very action may be prosecuted
in the name of the real party in interest . . . ." This "real
party in interest rule is ordinarily determinative of standing to
prosecute an action." Pressler, Current N. J. Court Rules,
comment 2 on R. 4:26-1 (2003). Standing is a threshold
justiciability determination of whether the plaintiff is entitled
to initiate and maintain an action on the matter before the
court. In Re Adoption of Baby T.,
160 N.J. 332, 340 (1999). The
litigant must have a sufficient stake in the matter and face "[a]
substantial likelihood of some harm" from an unfavorable
decision. New Jersey State Chamber of Commerce v. New Jersey
Election Law Enforcement Comm'n,
82 N.J. 57, 67 (1980). The
litigant must show that "there is genuine adverseness between the
parties in terms of the litigated controversy." Id. at 68. New
Jersey courts generally have set a fairly low threshold for
standing, and have afforded litigants the benefits of liberal
interpretations of the standing requirements. Triffin v.
Somerset Valley Bank,
343 N.J. Super. 73, 81 (App. Div. 2001).
Ordinarily, however, a litigant does not have standing to assert
the rights of a third party. Jersey Shore Med. Center-Fitkin
Hosp. v. Estate of Baum,
84 N.J. 137, 144 (1980). Moreover, only
an aggrieved party may appeal a judgment. Howard Sav. Inst. of
Newark v. Peep,
34 N.J. 494, 499 (1961).
Here, Spinnaker has no standing because it has not suffered
a "substantial likelihood of some harm" as a result of the
Board's decision. New Jersey State Chamber of Commerce, supra,
82 N.J. at 67. Spinnaker is not a licensed telecommunications
service provider under the Federal Communications Act (FCA). 47
U.S.C.A. § 332. Therefore, the Board's decision does not intrude
upon any statutory right held by Spinnaker to install or operate
the antennae on its own.
Moreover, once Sprint chose not to appeal the Board's
denial, it presumably terminated its lease with Spinnaker, as was
its right under paragraph 11 of the lease agreement.
Consequently, any economic interest derived from the lease that
was enjoyed by Spinnaker was extinguished upon its termination.
Thus, Spinnaker had no financial interest in the outcome of this
litigation sufficient to confer standing. See Associates
Commercial Corp. v. Langston,
236 N.J. Super. 236, 242 (App.
Div.) ("[a] financial interest in the outcome of litigation is
ordinarily sufficient to confer standing"), certif. denied,
118 N.J. 225 (1989).
Nevertheless, Spinnaker argues that its standing is derived
from the definition of "developer" under the Municipal Land Use
Law, N.J.S.A. 40:55D-1 to -136. N.J.S.A. 40:55D-4 defines
"[d]eveloper" as "the legal or beneficial owner . . . of any land
proposed to be included in a proposed development". Spinnaker
argues that it meets that definition because it is the "legal"
owner of the subject property. It reasons further that, as
"legal" owner, it would benefit by a reversal of the Board's
action and grant of the variance, since "a variance once granted,
runs with the land."
Plaintiff is correct that use variances attach to the land
and are not personal to the applicant. See Stop & Shop
Supermarket Co. v. Board of Adjustment,
162 N.J. 418, 432 (2000),
and cases cited therein. Thus, the benefit afforded by a use
variance "is available to the applicant's successors in title."
Id. at 433. Upon the grant of a variance and transfer of title,
the purchaser takes the land free from those zoning restrictions
to which the variance pertains. Id. at 432. A rationale for
this "widely-accepted principle" of zoning law is "the property-
specific focus of the proofs that ordinarily must be elicited to
support commercial use variances . . . ." Id. at 431-32. In
essence, upon satisfaction of the statutory requirements for a
variance, "the use or structure allowed becomes a conforming
use." Industrial Lessors, Inc. v. City of Garfield,
119 N.J.
Super. 181, 183 (App. Div.), certif. denied,
61 N.J. 160 (1972).
However, an application by a wireless telecommunications
provider implicates more than "property-specific" proofs. Stop &
Shop Supermarket Co., supra, 162 N.J. at 430-31. For example, it
is the FCC licensing of the provider itself that generally
suffices for the provider "to establish that the use serves the
general welfare." Smart SMR of New York, Inc. v. Borough of
Fairlawn Bd. of Adjustment,
152 N.J. 309, 336 (1998).
Moreover, a provider's use or conditional-use variance
application involves technical and design aspects not ordinarily
implicated in other variance applications. As we recently
observed:
It is one thing for a zoning board to deny an
expansion of a nonconforming dairy on the
basis that there was no showing by the
applicant that the municipality and
surrounding area were dependent upon the
expansion to provide adequate milk supply.
See Kohl, supra, 50 N.J. at 280,
234 A.2d 385. It is another matter when the board
denies a variance application for a
telecommunications facility by concluding
that the capacity or coverage of existing
systems is adequate to service the area
without the additional facility proposed by
the provider. It seems clear that the siting
and design aspects of a telecommunications
proposal often involve technical
considerations not implicated in other
applications.
[Ocean County Cellular Tel. Co. v. Township
of Lakewood Bd. of Adjustment,
352 N.J.
Super. 514, 523 (App. Div.), certif. denied,
___ N.J. ___ (2002).]
For example, a wireless telecommunications provider is
required to provide reliable services throughout its coverage
area. See Sprint Spectrum v. Borough of Upper Saddle River,
352 N.J. Super. 575, 581 (App. Div.), certif. denied,
174 N.J. 543
(2002). To achieve this goal, the provider creates a network of
individual "'cell sites,' which consist of radio antennae and
related equipment that send and receive radio signals to and from
customers' cellular phones." Cellular Tel. Co. v. Town of Oyster
Bay,
166 F.3d 490, 491 (2d Cir. 1999). Cell "sites" must be high
enough to permit successful transmission and receipt of the
signal's low-power, high-frequency radio waves. Ibid. Often,
additional cell sites must be added as cellular service usage
increases. Id. at 492. Inadequate facilities may create
"coverage gaps" that may result in inadequate service, static and
inability to place calls. Ibid.
Consequently, as a practical matter, when a wireless
telecommunications provider applies for a variance, it is seeking
relief because of a "coverage gap." Its proofs focus on the need
to fill that gap, whether the application involves a traditional
nonpermitted use (N.J.S.A. 40:55D-70d(1)), or a permitted,
conditional use (N.J.S.A. 40:55D-70d(3)). Compare Smart SMR of
New York, Inc., supra, 152 N.J. at 332 (holding that provider had
met the "particular suitability" test for a variance involving a
nonpermitted use), with Cell South of New Jersey, Inc., supra,
172 N.J. at 85-87 (provider satisfied less-demanding "positive"
criteria standard applicable to conditional-use variances, in
part by presenting expert testimony that its proposed tower would
improve existing wireless services).See footnote 22 In this case, for example,
Sprint's consulting engineer testified that without the nine
antennae proposed by Sprint "[t]hey would not be able to provide
the necessary or the desired level of service to their customers
and there would exist a service gap within the Sea Isle City
area."
Therefore, contrary to Spinnaker's argument in this case, a
conditional-use variance to permit construction of the nine
specific antennae proposed by Sprint would not adhere to the land
in the traditional zoning sense. This is so because any other
wireless telecommunications provider that may lease Spinnaker's
facilities will do so because it has its own discrete, coverage
gap. Its facility will be designed to be compatible with its own
existing network system. The number, size and location of
antennae used by the new provider will depend on the nature and
extent of the coverage gap in that system and other technical
factors relating to its operation. In short, without Sprint, the
application denied by the Board lacks technical relevance.
Therefore, Spinnaker had no standing to appeal the Board's denial
of the application.
Reversed.
Footnote: 1 1We have serious reservations whether the Board correctly treated this as a conditional-use variance. According to Ordinance No. 1038, conditions were imposed for ground-mounted television satellite dishes in residential areas based on concerns regarding the dishes' short, squat and immediately noticeable appearance in the landscape. None of the conditions in the ordinance pertain to the technical or siting features of a cellular telecommunications system, or the distinguishing characteristics of the antennae and other hardware installed by Sprint. Television satellite transmission and wireless telecommunications are entirely different uses, requiring different technologies and equipment. Consequently, in our view, the Board should have treated Sprint's application as one for a variance for a nonpermitted use under N.J.S.A. 40:55D-70d(1). Footnote: 2 2In a challenge to a variance application denial, the provider may also argue that the denial violated federal law. The FCA, 47 U.S.C.A. §332, provides that local regulation "shall not prohibit or have the effect of prohibiting the provision of personal wireless services." See § 332(c)(7)(B)(i)(II). The denial of a variance application for a telecommunications facility violates this section of the FCA if the provider proves that the denial will result in a "significant gap" in the availability of wireless services, and that its proposal is the least intrusive means to fill that gap. Cellular Tel. Co. v. Zoning Bd. of Adjustment of Ho-Ho-Kus, 197 F.3d 64, 70 (3d Cir. 1999). This standard as well focuses on the fact-sensitive nature of the service gap in the coverage area.