SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-2550-97T3
A-2562-97T3
TOLL BROTHERS, INC., a
Delaware Corporation,
Plaintiff-Respondent,
v.
WEST WINDSOR TOWNSHIP, a Municipal
Corporation of the State of
New Jersey, located in Mercer County,
New Jersey, MAYOR AND COUNCIL OF
WEST WINDSOR TOWNSHIP,
Defendants-Appellants,
and
WEST WINDSOR TOWNSHIP PLANNING BOARD,
Intervenor-Defendant-Appellant.
__________________________________________________________
Argued May 28, 1998 - Decided June 22, 1998
Before Judges Shebell, D'Annunzio and Coburn
On appeal from the Superior Court of New Jersey,
Law Division, Mercer County.
Daniel S. Bernstein argued the cause for appellants
West Windsor Township and Mayor and Council of
West Windsor Township (Bernstein & Hoffman, attorneys;
Mr. Bernstein, of counsel and on the brief).
Henry A. Hill argued the cause for respondent
(Hill Wallack, attorneys; Mr. Hill and
Thomas F. Carroll, III, on the brief).
Gerald J. Muller argued the cause for intervenor/
defendant-appellant West Windsor Township
Planning Board (Miller, Porter & Muller, attorneys;
Mr. Muller, of counsel and on the brief).
Roger W. Thomas argued the cause for amicus curiae
New Jersey Planning Officials (Dolan and Dolan,
attorneys; Donald M. Ross, on the brief).
Peter A. Buchsbaum argued the cause for amici curiae
the New Jersey Builders Association and the National
Association of Homebuilders (Greenbaum, Rowe, Smith,
Ravin, Davis & Himmel, attorneys; Mr. Buchsbaum and
Arthur M. Greenbaum, of counsel, Mr. Greenbaum and
Jessica L. Kyle, on the brief).
The opinion of the court was delivered by
D'ANNUNZIO, J.A.D.
West Windsor Township and the West Windsor Township Planning
BoardSee footnote 1 appeal from a judgment invalidating "Timed Growth
Controls" contained in its zoning ordinance.
The township consists of twenty-seven square miles located
in Mercer County. It is experiencing rapid residential
development. The township's 1990 population was 16,021, almost
triple its 1970 population of 6,431. Another indication of its
growth is the increase in its public school population from 2,477
in 1987 to 4,488 in 1997.
The township contends that its roadway system lacks the
capacity to serve the existing population and future development.
To address this problem it has adopted a capital improvement
program to increase roadway capacity. The time frame for
completion of the program is approximately fifty years, ending in
the year 2045.
As a result of the perceived inadequacies in its roadway
system, and as a corollary to the capital improvement program,
the township adopted "timed growth controls" as Article III of
its zoning ordinance. One of the legislative findings in Article
III defines their purpose. It states:
It is also necessary to control the rate
of growth so that the township, county, and
state have the opportunity to implement a
program of road network improvements before
development for which they are designed to
create capacity is constructed. The most
reasonable way of doing so is by deferring
development until the time when road
improvements designed to accommodate traffic
from it are scheduled to be built and phasing
development during the times scheduled for
construction of such improvements.
To fulfill this purpose, the ordinance recognizes "basic
rights" and "additional rights." A "basic right" is the right to
develop immediately a certain percentage of the dwelling units
permitted to a particular tract under the zoning ordinance. The
percentage of dwelling units permitted immediately as a basic
right varies within each timed growth district. There are ten
such districts. The percentage of dwelling units constituting
basic rights varies from twenty percent in two of the districts
to fifty percent in one of the districts.
Section 22-3.1 defines "basic rights:"
The zoning rights for each lot in a timed
growth district shall be divided into basic
rights and additional rights. Basic rights
shall constitute the percentage of the
dwelling units (but not less than one unit)
or nonresidential floor area permitted under
the zoning. Basic rights for tracts which
are zoned to include low- and moderate-income
housing and basic rights for public uses
shall be one hundred (100") percent. Basic
rights for all other lots shall be as
follows:
Timed Growth District Percentage of
Zoning Rights
1D and 2A 20%
2B 25%
1A & C and 2C & D 30%
1B and 3 40%
4 50%
Section 22-3.2 provides that "[b]asic rights shall be exercisable
at any time."
Section 22-3.2.2 deals with the exercise of "additional
rights." It provides, in part:
Additional Rights. Additional rights may be
exercised for each property within each timed
growth district only in accordance with the
following:
Timed Date When Percentage of
Growth Additional Additional
District Rights May Rights Which
First Be May Be Exercised
Exercised Per Year
1A 2011 10%
1B 2021 10%
1C 2006 10%
1D 1996 10%
2A 1996 10%
2B 2001 10%
2C & D 2011 6.67%
3 2021 10%
4 2031 6.67%
Plaintiff in this case, Toll Brothers, Inc., is the contract purchaser of a tract in timed growth district 2D. The basic rights for that district constitute thirty percent of the permitted units under the zoning ordinance. As an example, if a tract in district 2D would yield sixty dwelling units under the zoning ordinance, the developer would have the basic right to
build immediately eighteen of those units, i.e., thirty percent
of sixty. The developer, however, would have to defer
development of the balance of its project. The right of deferred
development is the "additional right."
In district 2D the developer may begin exercising its
additional rights in the year 2011. Thus, in that year the
developer may begin to construct the balance of the forty-two
dwelling units. The ordinance, however, restricts the number of
dwelling units, additional rights, which may be constructed in
any year. In district 2D the developer may exercise 6.67 percent
of its additional rights per year beginning in the year 2011.
Thus, a developer with additional rights to forty-two additional
dwelling units would be permitted to construct three units in the
year 2011 and three units each year thereafter.
The ordinance gives a developer the option of limiting its
development to sixty percent of the total units permitted under
the zoning ordinance. If the developer accepts that option, the
developer may develop sixty percent of the entire project
immediately, but it gives up any additional development rights on
that tract. Additionally, under Section 22-3.3b, a developer may
accelerate the exercise of its additional rights "in their
entirety by constructing or causing to be constructed . . . all
of the municipal, state, or county road improvements located
within their timed growth district or outside that district but
necessary to service traffic from their district. . . . " But
cf. New Jersey Builders Ass'n v. Bernards Township,
108 N.J. 223,
238 (1987) (holding that Municipal Land Use Law does not
authorize a municipality to allocate the cost of a township-wide
road construction project among new developments based on the
projected theoretical impact of the new development on road use).
The ordinance also permits acceleration of the exercise of
additional rights to the extent that there is road capacity
available. The record contains a traffic analysis by the
township which indicates that there was no road capacity
available as of 1996.
Toll Brothers commenced this action to invalidate the timed
growth controls. It moved for summary judgment, contending that
the timed growth controls were not authorized by New Jersey's
Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1 to -92, and, in
any event, that they constituted a moratorium or interim zoning
prohibited by N.J.S.A. 40:55D-90 (hereinafter section 90). In a
comprehensive and well-reasoned written opinion, the Law Division
judge granted summary judgment to plaintiff, ruling that the MLUL
does not authorize timed growth controls and that the timed
growth controls constitute "a de facto moratorium" in violation
of section 90.
We need only address the moratorium issue.
The Legislature adopted the MLUL in 1975, to be effective
August 1, 1976. As originally enacted, the MLUL contained
section 90, but the Legislature has amended it twice. Section 90
originally provided:
Moratoriums; interim zoning. a. The
prohibition of development in order to
prepare a master plan and development
regulations is prohibited.
b. A municipality may adopt a reasonable
interim zoning ordinance not related to the
land use plan element of the municipal master
plan without special vote as required
pursuant to section 49a. of this act, pending
the adoption of a new or substantially
revised master plan or new or substantially
revised development regulations. Such
interim zoning ordinance shall not be valid
for a period longer than 1 year unless
extended by ordinance for a period no longer
than an additional year for good cause and
upon the exercise of diligence in the
preparation of a master plan, development
regulations or substantial revisions thereto,
as the case may be.
[L. 1975, c. 291, § 77.]
In 1979 section 90 was amended by adding an additional
clause validating until May 31, 1979 any ordinance extending an
interim zoning ordinance if it were in effect on January 31,
1979.
In 1985, the Legislature again amended section 90. The
amendment preserved subsection a., but eliminated the original
subsection b. and substituted a new subsection b. Section 90 now
provides:
a. The prohibition of development in order
to prepare a master plan and development
regulations is prohibited.
b. No moratoria on applications for
development or interim zoning ordinances
shall be permitted except in cases where the
municipality demonstrates on the basis of a
written opinion by a qualified health
professional that a clear imminent danger to
the health of the inhabitants of the
municipality exists, and in no case shall the
moratorium or interim ordinance exceed a six-month term.
[L. 1985, c. 516, § 20.]
In its current form section 90b prohibits "moratoria on
applications for development," and it prohibits "interim zoning
ordinances." Current section 90 is more restrictive of municipal
authority than original section 90 because in subsection b., it
expressly prohibits "moratoria" as well as "interim zoning
ordinances," in addition to the restriction contained in
subsection a. Moreover, to the extent that subsection b. permits
moratoria or interim ordinances, it limits them to a "six-month
term" and requires that they be justified by "a clear imminent
danger to the health of the inhabitants of the municipality."
The issue, therefore, is whether the township's timed growth
controls constitute a moratorium or interim zoning.
In construing a statute we must effectuate the Legislature's
intent. Monmouth County v. Wissell,
68 N.J. 35, 43-44 (1975).
Sources of legislative intent are the language of a statute, the
policy behind a statute, concepts of reasonableness, and
legislative history. Coletti v. Union County Bd. of Chosen
Freeholders,
217 N.J. Super. 31, 35 (App. Div. 1987); Shapiro v.
Essex County Bd. of Chosen Freeholders,
177 N.J. Super. 87, 92
(Law Div. 1980), aff'd,
183 N.J. Super. 24 (App. Div. 1982),
aff'd,
91 N.J. 430 (1982).
"[W]e must first look at the evident wording of the statute
to ascertain its plain meaning and intent." Renz v. Penn Cent.
Corp.,
87 N.J. 437, 440 (1981). Our duty is to apply the
legislative intent as expressed in the statute's language, and we
are not to presume that the Legislature intended something other
than what it expressed by its plain language. In re Jamesburg
High School Closing,
83 N.J. 540, 548 (1980); In re Howell Tp.,
Monmouth County,
254 N.J. Super. 411, 419 (App. Div.), certif.
denied,
127 N.J. 548 (1991).
The MLUL does not define a moratorium. Its "ordinary and
well understood meaning," Levin v. Township of Parsippany-Troy
Hills,
82 N.J. 174, 182 (1980), is "a period of permissive or
obligatory delay." Webster's New International Dictionary 1593
(2d ed. 1934); Black's Law Dictionary 1009 (6th ed. 1990)See footnote 2; see
Delaware Bay Waterman's Ass'n v. New Jersey Dep't of Envt'l
Protection,
304 N.J. Super. 20, 23 (App. Div. 1997) (indicating
that DEP characterizes its ban on the harvesting of horseshoe
crabs as a "moratorium"), appeal dismissed as moot, ____ N.J.
____ (1998); Jersey City Redev. Agency v. Mack Properties Co.,
280 N.J. Super. 553, 560, 566 (App. Div. 1995) (describing a ban
on sewer connection as a moratorium).
In Schiavone Const. Co. v. Hackensack Meadowlands Dev.
Comm'n,
98 N.J. 258 (1985), decided prior to the 1985 amendment
of section 90b, the Court addressed a Commission resolution
"directing that all development applications be held in abeyance
. . . ." Id. at 261. The Court discussed the Commission's
action, stating that "the net effect of which was to place a
freeze on all land development in the covered area." Ibid. It
characterized the Commission's action as a "moratorium." Id. at
262. The Court remanded to the Appellate Division for
reconsideration because the factual assumption of the Appellate
Division's decision upholding the "moratorium," i.e., that it
would be of short duration, eight months, subsequently was proved
to be incorrect. The moratorium actually lasted for nineteen
months. Id. at 262. The Court declined, however, to address
plaintiff's claim that the Commission lacked statutory
authorization to impose a moratorium and that the moratorium
violated section 90a. Id. at 260. See also New Jersey Shore
Builders Ass'n v. Township Comm. of Dover,
191 N.J. Super. 627,
632-33 (1983) (invalidating, prior to 1985 amendment of section
90b, 180 day moratorium on issuance of building permits for
multifamily dwellings, pending a report on the adequacy of the
public water supply); New Jersey Shore Builders Ass'n v. Township
of Ocean,
128 N.J. Super. 135, 138 (App. Div.) (holding, prior to
the MLUL, that municipality had the power to impose a six-month
moratorium on the approval of industrial development projects
until enactment of a new zoning ordinance), certif. denied,
65 N.J. 292 (1974); Cappture Realty Corp. v. Board of Adjustment of
Elmwood Park,
126 N.J. Super. 200, 213-14 (Law Div. 1973)
(upholding, prior to MLUL, a moratorium on construction in flood-prone areas), aff'd, 133 N.J. Super. 216 (App. Div. 1975).
New Jersey Shore Builders Ass'n v. Mayor and Township of
Middletown,
234 N.J. Super. 619 (Law Div. 1989), applied the
current version of section 90b. There, the municipality had
imposed a six-month moratorium on major site plan and subdivision
applications based on a perceived inadequacy of the
municipality's water distribution system. Id. at 624. The
court, noting that "[t]here is no longer any doubt about the
power [to impose a moratorium] or the legislative intent strictly
to limit the use of that power," id. at 622, held that the
statutory predicate for a six-month moratorium, "a clear imminent
danger to the health of the inhabitants of the municipality," was
not supported in the record. Id. at 628.
In the present case, we conclude that the township's timed
growth controls constitute a prohibited moratorium with regard to
a developer's "additional rights." Exercise of those rights is
suspended for periods measuring a year in two districts to more
than ten years in other districts. Moreover, additional rights
may be exercised only over a period of time from ten years to
approximately fifteen years depending on the district. This
secondary postponement of full enjoyment of the development
rights afforded by the zoning ordinance constitutes an additional
level of moratoria.
Intervenor West Windsor Township Planning Board contends
that section 90b prohibits only moratoria on "development
applications." It argues that the township's ordinance does not
prohibit such applications, and, therefore section 90b is not
violated. We conclude that this argument is invalid and contrary
to legislative intent. It offends common sense to believe that a
moratorium on applications is prohibited, but a moratorium on
full implementation of an approved application is valid. Cf.
Schierstead v. Brigantine,
29 N.J. 220, 230 (1959) (stating that
"[s]tatutes are to be read sensibly rather than literally and the
controlling legislative intent is to be presumed as `consonant to
reason and good discretion.'"); Reisman v. Great Am. Rec., Inc.,
266 N.J. Super. 87, 95-96 (App. Div.) (observing that "statutes
are to be read sensibly rather than literally" and should not be
construed in a manner which would lead to unreasonable or
anomalous results).
Appellants rely on decisions from other jurisdictions which
have upheld ordinances imposing similar timed growth controls
such as Golden v. Planning Bd. of Ramapo,
285 N.E.2d 291 (N.Y.
1972), and Construction Industry Ass'n v. City of Petaluma,
522 F.2d 897 (9th Cir. 1975), cert. denied,
424 U.S. 934,
96 S. Ct. 1148,
47 L. Ed.2d 342 (1976). Those decisions, though
interesting, are not helpful because the jurisdictions did not
have a statutory prohibition equivalent to section 90. Cf. New
Jersey Builders Ass'n v. Bernards Township, supra, 108 N.J. at
234 (holding that the MLUL controls exercise of the power to
regulate land use and development).
We have considered the impact on Article III's validity of
the developer's option to build immediately sixty percent of its
development rights. Although this option effects a de facto
decrease in density, the mechanism by which this is achieved is a
permanent moratorium on utilization of forty percent of the
development rights afforded in the ordinance. This violates
section 90b.
We note for purposes of completeness that on May 18, 1998,
ten days before this appeal was argued, the township amended its
ordinance to decrease the allowable density in certain
residential districts by increasing the minimum lot sizes. The
township described the impact of the amendment, effective on
June 8, 1998, in the notice it sent to landowners, as required in
N.J.S.A. 40:55D-62.1. The notice stated, in part:
[It] changes the maximum permitted density of
certain residential districts to be
consistent with what they were before Judge
Feinberg overturned the Timed Growth
Ordinance, as follows:
R-1, rural density residential, shall be
changed from one dwelling unit per two acres
to one dwelling unit per 3 and 1/3 acres, and
the greater portion of R-2, low density
residential (see map), shall be renamed R-1A
and shall be changed from one dwelling unit
per acre to one dwelling unit per 1 and 2/3
acres. This ordinance will apply to existing
properties within these zones as well as to
applications for site plan and subdivision
approval.
The amendment did not expressly eliminate Article III. Two
days before oral argument, counsel for plaintiff requested an
adjournment to afford the parties an opportunity to brief
"issues" arising out of the amendment. We denied the
application. Article III is a discrete element of the zoning
ordinance, and its validity is capable of adjudication without
regard to the amendment. We, of course, do not rule on the
validity of the amendment.
The judgment invalidating Article III is affirmed on the
ground that it violated section 90b.
Footnote: 1Separate notices of appeal were filed, which we consolidated. Footnote: 2"Moratorium" has also been defined as "a suspension of activity; a temporary ban on the use or production of something." Webster's New International Dictionary 1469 (3d ed. 1993).