Opinion

Sj 660 LLC v. Borough of Edgewater

Court
New Jersey Superior Court Appellate Division
Filed
Aug 13, 2024
Status
Unpublished
Cited by
0 cases
Authority
More cited than 30.5%

explaining the requirements for a settlement agreement to be approved by the court in an affordable housing matter

How later courts described this case

  • explaining the requirements for a settlement agreement to be approved by the court in an affordable housing matter
  • explaining that "nothing" in the relevant provision of the LRHL "suggests that a planning board may not rely on a redevelopment consultant in conducting its investigation" into whether an area is in need of redevelopment
  • describing the procedures under the LRHL for designating an area as in need of redevelopment

Written by the judges who cited it.

The opinion

NOT FOR PUBLICATION WITHOUT THE

APPROVAL OF THE APPELLATE DIVISION

This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the

internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY

APPELLATE DIVISION

DOCKET NO. A-0788-22

SJ 660 LLC,

Plaintiff-Appellant,

v.

BOROUGH OF EDGEWATER,

a municipal corporation of the

State of New Jersey,

Defendant-Respondent,

and

BOROUGH OF CLIFFSIDE

PARK,

Plaintiff/Intervenor-

Respondent,

v.

BOROUGH OF EDGEWATER and

615 RIVER ROAD PARTNERS,

LLC,

Defendants-Respondents,

and

EDGEWATER ZONING BOARD

OF ADJUSTMENT and JOHN

CANDELMO, Land Use

Administrator,

Defendants.

____________________________

SJ 660 LLC,

Plaintiff-Appellant,

v.

BOROUGH OF EDGEWATER, a

municipal corporation of the State

of New Jersey, BOROUGH OF

EDGEWATER PLANNING BOARD,

and 615 RIVER ROAD PARTNERS,

LLC,

Defendants-Respondents,

and

BOROUGH OF EDGEWATER

COUNCIL,

Defendant.

_____________________________

BOROUGH OF CLIFFSIDE PARK,

Plaintiff,

v.

A-0788-22

2

BOROUGH OF EDGEWATER,

Defendant-Respondent.

_____________________________

Argued June 3, 2024 – Decided August 13, 2024

Before Judges Gilson, DeAlmeida, and Berdote Byrne.

On appeal from the Superior Court of New Jersey, Law

Division, Bergen County, Docket Nos. L-8788-19, L-

4882-20, and L-5095-20.

Steven G. Mlenak argued the cause for appellant

(Greenbaum, Rowe, Smith & Davis LLP, attorneys;

Steven G. Mlenak, of counsel and on the briefs;

Michael J. Coskey, on the briefs).

Joseph Mariniello and John A. Stone argued the cause

for respondent Borough of Edgewater (Hartmann,

Doherty, Rosa, Berman & Bulbulia and DeCotiis,

Fitzpatrick, & Giblin, LLP, attorneys; John A. Stone, of

counsel and on the brief; Joseph Mariniello, on the

brief).

Roger Plawker argued the cause for respondent 615

River Road Partners, LLC (Pashman Stein Walder

Hayden, PC, and Greenberg Traurig, LLP, attorneys;

Justin P. Walder, of counsel; Roger Plawker, and Cory

Mitchell Gray, of counsel and on the brief; Howard

Pashman, on the brief).

Craig Bossong argued the cause for respondent

Borough of Edgewater Planning Board (Florio Perrucci

Steinhardt Cappelli Tipton & Taylor, LLC, attorneys;

Craig Bossong and Chad Klasna, on the brief).

PER CURIAM

A-0788-22

3

This appeal arises out of disputes related to long-standing efforts to

develop a property in the Borough of Edgewater (the Borough). After years of

litigation and related applications for zoning variances, 615 River Road

Partners, LLC (RR Partners), which owns the property, entered into a settlement

agreement with the Borough (the Settlement Agreement). The Settlement

Agreement provided that (1) a parcel of the property would be designated as an

area in need of redevelopment in accordance with the governing law; (2) a

redevelopment plan would be adopted allowing RR Partners to build 1,200

residential units, including affordable housing units; (3) RR Partners would be

appointed as the redeveloper; and (4) RR Partners would give another parcel of

the property to the Borough so that the Borough could build a school and a

recreational facility. Thereafter, in accordance with the procedures set forth in

the Local Redevelopment and Housing Law (the LRHL), N.J.S.A. 40A:12A-1

to -89, a parcel of the property was designated as an area in need of

redevelopment, the Borough adopted a redevelopment plan, and RR Partners

was appointed as the redeveloper.

Plaintiff SJ 660 LLC (plaintiff or SJ LLC), which owns an adjacent

property, filed a series of actions in lieu of prerogative writs, challenging the

Settlement Agreement, the redevelopment designation and plan, and the

A-0788-22

4

appointment of RR Partners as the redeveloper. Following a bench trial, the

court rejected plaintiff's challenges and entered a judgment dismissing plaintiff's

complaints with prejudice. Plaintiff now appeals from that judgment. Having

reviewed the record and governing law, we reject all of plaintiff's arguments and

affirm.

I.

The property, located at 615 River Road in Edgewater, was previously

owned by the Hess Corporation (Hess), which operated an oil terminal on the

property until 2013. The property consists of two parcels of land divided by

River Road. The eastern parcel is designated Block 76, Lots 1 and 5, borders

the Hudson River on its eastern side, and consists of approximately fourteen

acres of land (the Eastern Parcel). The western parcel is designated Block 77,

Lot 1, and consists of approximately five acres of land (the Western Parcel).

In December 2014, RR Partners purchased both parcels from Hess for

approximately $26 million. At that time, the Eastern Parcel was zoned B-3,

which allows commercial uses. The Western Parcel was zoned OR-1, which

allows office and industrial uses.

In 2015, RR Partners applied to the Edgewater Zoning Board of

Adjustment (the Zoning Board) for variances to allow it to develop the property

A-0788-22

5

for residential purposes. RR Partners sought to construct multiple high -rise

buildings with over 1,800 residential units. RR Partners' application was

deemed incomplete, and RR Partners filed suit seeking default approval of the

application (the Zoning Board Action). Thereafter, the court overseeing the

Zoning Board Action granted summary judgment in favor of the Zoning Board

and remanded the application. RR Partners then filed two additional

applications, one for each parcel, again seeking variances to develop the

property for residential purposes. The Zoning Board denied both of those

applications without addressing the merits.

Thereafter, years of litigations ensued. Those litigations included a suit

brought by RR Partners challenging the denial of its applications for variances.

The Borough also passed a resolution and ordinance authorizing the taking of

the Eastern Parcel by eminent domain. RR Partners then sued the Borough in

federal court, alleging that the Borough had violated its constitutional and civil

rights by favoring another developer who had been unsuccessful in purchasing

the property (the Federal Action).

There were also several suits involving the Borough's compliance with its

affordable housing requirements. The Fair Share Housing Center (FSH Center)

brought a suit to compel the Borough's compliance with its affordable housing

A-0788-22

6

obligations. The Borough also filed a declaratory judgment action concerning

its affordable housing obligations. RR Partners brought its own affordable

housing actions against the Borough and intervened in one of the other

affordable housing actions because the property was one of the last properties

in Edgewater eligible for redevelopment.

In late 2019, after extensive negotiations and mediation, RR Partners and

the Borough resolved all their disputes and agreed to enter into the Settlement

Agreement. Thereafter, the Borough's Council conducted an open public

meeting and adopted a resolution authorizing the Settlement Agreement, which

was then fully executed on December 19, 2019.

Under the Settlement Agreement, RR Partners and the Borough settled all

the claims in the Federal Action, the Zoning Board Action, and the affordable

housing actions. The Borough also agreed to end its efforts to condemn and take

the Eastern Parcel by eminent domain. In dismissing the Federal Action, the

federal court retained jurisdiction to enforce the Settlement Agreement.

Substantively, the Settlement Agreement details a series of actions the

parties agreed to undertake to facilitate development of the property. In that

regard, the Settlement Agreement states:

A-0788-22

7

1. RR Partners would convey the Western Parcel to

the Borough so that a school and recreational facility

could be built;

2. The Borough "shall (i) in accordance with its

April 2017 Master Plan Re-Examination Report,

designate the Eastern Parcel as an Area in Need of

Redevelopment as provided by [the LRHL], upon

receipt of a recommendation to that effect from the

Edgewater Planning Board, (ii) adopt a Redevelopment

Plan for the Eastern Parcel substantially in the form

annexed hereto as Exhibit H, (iii) designate [RR

Partners] as the Redeveloper of the Eastern Parcel[,]

and (iv) enter into a Redevelopment Agreement with

[RR Partners] for the Eastern Parcel substantially in the

form annexed hereto as Exhibit E," (boldface omitted);

3. RR Partners agreed to reduce its proposed

development from 1,873 residential units to 1,200

units;

4. RR Partners committed to set aside at least fifteen

percent of the residential units for rent and at least

twenty percent of the residential units for sale as

affordable housing units; and

5. RR Partners agreed to undertake various

infrastructure improvements and upgrades, including

constructing a bus stop, and received the right to

construct various additional improvements, including

an elevated walkway across River Road and a new ferry

stop.

Various provisions in the Settlement Agreement required RR Partners and

the Borough to follow statutory and legal review processes. In that regard, the

Settlement Agreement provides:

A-0788-22

8

[T]he settlement herein will, in part, provide [RR

Partners] with an opportunity to develop the Eastern

Parcel in accordance with this Agreement, conditioned

on [RR Partners'] compliance with the criteria and

procedure provided in the Municipal Land Use Law,

N.J.S.A. 40:55D-1 [to -163] [(the MLUL)], [the

LRHL], Affordable Housing Law, and other law and

regulation where applicable.

....

. . . The parties hereto agree that this Agreement

is not in conflict with the MLUL, the LRHL[,] and/or

the municipal ordinances of [the Borough] and that

nothing herein is or shall be deemed by the Parties to

be in derogation thereof or of [the Borough's] and the

Planning Board's obligations and duties thereunder.

....

. . . Upon execution of this Agreement, the Parties

and their respective counsel shall cause to be filed a

joint Motion requesting approval, after a Mount Laurel

Fairness Hearing, of [RR Partners'] agreement to

provide an affordable housing component as set forth

in Paragraph 4 hereof pursuant to this settlement.

Separately, the Borough and FSH Center settled their affordable housing

litigations. In July 2020, the court overseeing those litigations conducted a

fairness hearing and conditionally approved the Borough's compliance plan,

which included the affordable housing set aside in the Settlement Agreement.

The final compliance hearing was conducted in October 2021, and, the following

A-0788-22

9

month, a final judgment of compliance and repose with conditions was entered

in the affordable housing litigations.

Meanwhile, in December 2019, the Borough's Council requested the

Edgewater Planning Board (the Planning Board) to investigate whether the

Eastern Parcel qualified as an area in need of redevelopment in accordance with

the LRHL. Shortly thereafter, the Planning Board undertook an investigation

and conducted several public hearings between February and June 2020. SJ

LLC appeared at those hearings represented by counsel.

At the first hearing, which was conducted on February 11, 2020, SJ LLC

objected to the Mayor's and one councilperson's participation in the Planning

Board's consideration, alleging that they had conflicts of interest because,

although they had not been named as defendants, there had been allegations

made about them in the Federal Action. The Planning Board's attorney opined

that the Mayor and councilperson did not need to recuse themselves, but the

Mayor and councilperson decided to recuse themselves.

During the hearings, the Planning Board heard testimony from several

experts, including Paul Grygiel, Kathryn Gregory, and Peter Steck. Grygiel had

previously provided consulting services to RR Partners in connection with its

planning for the development of the property. Grygiel had been asked to prepare

A-0788-22

10

a report during the settlement negotiations as to whether the Eastern Parcel was

an area in need of redevelopment. Ultimately, Grygiel was appointed a "special

planner" to the Planning Board, and he presented a report, which he updated at

various times. In that regard, Grygiel had initially prepared the report in July

2019 at the request of RR Partners. He thereafter presented the report to the

Borough in December 2019 and updated it in March 2020.

According to Grygiel, the Eastern Parcel was formerly used for storage,

transfer, and distribution of petroleum products. He explained that the site had

been contaminated and, thereafter, remediated. Ultimately, Grygiel opined that

there were grounds for finding the Eastern Parcel was an area in need of

redevelopment under subsections (b) and (d) of N.J.S.A. 40A:12A-5. Grygiel

opined that the buildings that had been removed from the Eastern Parcel had

been removed for health and safety reasons and, therefore, the Eastern Parcel

qualified as an area in need of redevelopment under N.J.S.A. 40A:12A-5(b).

Grygiel also opined that the Eastern Parcel had a deleterious effect on the

surrounding residential and commercial properties because it was partially

paved with asphalt, had overgrown vegetation, contained abandoned equipment,

and was surrounded by a chain link fence topped with barbed wire. Grygiel

concluded the "obsolete and deleterious conditions . . . [were] detrimental to the

A-0788-22

11

safety, health, and welfare" of the community and, therefore, the Eastern Parcel

was an area in need of redevelopment under N.J.S.A. 40A:12A-5(d).

The Planning Board also heard testimony from its own planner, Gregory.

Gregory submitted a report and testified. She stated that in two Master Plan Re-

Examinations in 2012 and 2014, the Planning Board had recommended that the

Eastern Parcel be considered for designation as an area in need of

redevelopment. Gregory expressed the view that N.J.S.A. 40A:12A-5(b)

allowed consideration of buildings that had previously existed on the site, as

well as remaining improvements. According to Gregory, because some of the

buildings that previously existed had contained asbestos, the Eastern Parcel was

deleterious to the public health and safety. Gregory also expressed the view that

the structures still on the Eastern Parcel were an attractive nuisance and,

therefore, a safety hazard. Gregory agreed with Grygiel's opinion that the

Eastern Parcel was an area in need of redevelopment under both subsections (b)

and (d) of N.J.S.A. 40A:12A-5.

Counsel for SJ LLC cross-examined both Grygiel and Gregory. SJ LLC

also presented its own expert, Steck. Steck prepared and presented a report

dated February 10, 2020, and a supplemental planning evaluation report dated

May 29, 2020. Steck disagreed with the opinions of Grygiel and Gregory and

A-0788-22

12

testified that the Eastern Parcel did not satisfy the conditions to be an area in

need of redevelopment under N.J.S.A. 40A:12A-5(b) or (d). Steck also asserted

that Grygiel's report was biased because he had originally prepared the report

for RR Partners. Additionally, Steck expressed the view that the Planning Board

had been biased by the Settlement Agreement.

On June 10, 2020, the Planning Board also heard testimony from David

Puchalski, a Licensed Site Remediation Professional who had been involved in

the ongoing monitoring and remediation at the property. Puchalski detailed the

remediation that had already occurred on the property and explained that some

remediation and monitoring was still needed at the property.

That same day, the Planning Board voted to recommend to the Borough's

Council that the Eastern Parcel met the statutory redevelopment criteria. In that

regard, four Planning Board members voted in favor of that designation, two

abstained, and one voted against the designation. Approximately a month later,

on July 8, 2020, the Planning Board memorialized its decision in a written

resolution. That resolution provided, in part:

[A]fter considering all the evidence presented, the

testimony provided by all the experts, the factual

witness and the public, and the cross-examination and

presentation of Objector's counsel, a majority of the

Board determined that the testimony of Ms. Gregory

and Mr. Grygiel was more credible than Mr. Steck, and

A-0788-22

13

that the delineated area, known as Block 76, Lots 1 &

5, met the statutory criteria as an area in need of

redevelopment in accordance with criteria "b" and "d"

of the [LRHL], N.J.S.A. 40A:12A-5[,] as the study area

contains a number of improvements that are

dilapidated, obsolete, and are detrimental to the safety

and welfare of the community, and the study area was

formerly developed with industrial buildings whose use

was discontinued prior to being removed for health,

safety[,] and public welfare reasons and voted to

recommend to the Mayor and Council, pursuant to

N.J.S.A. 40A:12A-6(b)(5), that the area should be

declared an area in need of redevelopment.

[(Citations reformatted).]

Shortly thereafter, the Borough's Council adopted a resolution accepting

the Planning Board's recommendation that the Eastern Parcel be designated as

an area in need of redevelopment. That same day, the Council introduced an

ordinance requesting the Planning Board to review the proposed redevelopment

plan as a consistency review required under the LRHL and MLUL.

The Planning Board then held a special public meeting on August 26,

2020, to review the proposed redevelopment plan. At that hearing, the Planning

Board heard testimony from its engineer, Dennis Harrington, and its planner,

Gregory. According to Gregory, the redevelopment plan furthered several goals

of the Master Plan because the redevelopment plan would include a waterfront

walkway, maintain easterly views, promote the appropriate level of development

A-0788-22

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of piers along the Hudson River waterfront, and encourage pedestrian use by

constructing sidewalks, byways, and a bridge.

The Planning Board agreed with Gregory's opinions and concluded that

the redevelopment plan was substantially consistent with the Borough's Master

Plan and Re-Examination reports. The Planning Board then voted to

recommend the adoption of the redevelopment plan but also recommended that

the Council impose eleven conditions on the redevelopment plan.

At a public hearing on September 29, 2020, the Borough's Council

adopted the redevelopment plan, including seven of the Planning Board's

recommended conditions (the Redevelopment Plan). The Council did not accept

four of the eleven conditions recommended by the Planning Board. The Council

then enacted an ordinance adopting the Redevelopment Plan, subject to the

seven new conditions, and adopted a resolution naming RR Partners as the

redeveloper.

In response to the Borough's actions, SJ LLC filed two actions in lieu of

prerogative writs. SJ LLC operates a hotel and spa on a property located at 660

River Road. SJ LLC's property is adjacent to the Eastern and Western Parcels

and currently has views of the New York City skyline.

A-0788-22

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The first action was filed in December 2019 and thereafter amended. In

that action, SJ LLC challenged the Borough's adoption of the Settlement

Agreement and sought to void the Settlement Agreement. RR Partners and the

Borough of Cliffside Park (Cliffside Park), a municipality located along the

western border of the Borough of Edgewater, intervened in that action.

SJ LLC also filed a second complaint in lieu of prerogative writs against

the Borough, RR Partners, the Planning Board, and the Borough's Council. In

that action, in which SJ LLC also amended its complaint, it sought to challenge

and vacate the designation of the Eastern Parcel as an area in need of

redevelopment, the Redevelopment Plan, and the designation of RR Partners as

the redeveloper.

Cliffside Park also filed a separate complaint in lieu of prerogative writs

against the Borough seeking to vacate the designation of the Eastern Parcel as

an area in need of redevelopment. The trial court consolidated those three

matters.

On August 6, 2021, the trial court denied SJ LLC's and Cliffside Park's

request for discovery, reasoning that the requested discovery sought to delve

into the mental processes of Borough officials concerning why they signed the

A-0788-22

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Settlement Agreement. The trial court also denied motions for reconsideration

of that decision.

On July 21, 2022, the trial court conducted a bench trial on the

consolidated matters. Thereafter, on October 4, 2022, the trial court issued a

detailed opinion and judgment dismissing all the complaints in lieu of

prerogative writs with prejudice. In its written opinion, the trial court analyzed

the various challenges to the actions of the Borough and the Planning Board and

determined that there were no grounds for invalidating the Settlement

Agreement, the designation of the Eastern Parcel as an area in need of

redevelopment, the Redevelopment Plan, or the designation of RR Partners as

the redeveloper. Accordingly, the court dismissed all the complaints in lieu of

prerogative writs with prejudice.

SJ LLC and Cliffside Park appealed from the judgment. Thereafter,

Cliffside Park filed a stipulation of dismissal and withdrew its appeal.

II.

On appeal, SJ LLC presents nine arguments, some with subparts, for our

consideration. Three of those arguments challenge the Settlement Agreement.

In that regard, SJ LLC contends that the Settlement Agreement did not comply

with the LRHL, constituted illegal contract zoning, and violated the holding in

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Whispering Woods at Bamm Hollow, Inc. v. Township of Middletown Planning

Board, 220 N.J. Super. 161, 172 (Law Div. 1987). Two of the arguments attack

the designation and the Redevelopment Plan: SJ LLC asserts that the record

does not support the Borough's designation of the Eastern Parcel as an area in

need of redevelopment under subsection (b) or (d) of N.J.S.A. 40A:12A-5; and

that the trial court erred in finding that there was substantial, credible evidence

supporting the Borough's adoption of the Redevelopment Plan. SJ LLC also

raises three ethical arguments. It alleges that the Mayor and Council members

had conflicts of interest and should not have been involved in the approval of

the Settlement Agreement; and that both Grygiel and Gregory violated the Local

Government Ethics Law (the Ethics Law), N.J.S.A. 40A:9-22.1 to -22.25, by

participating in the review of the Eastern Parcel as an area in need of

redevelopment. Finally, SJ LLC argues that the trial court erred in denying i ts

request for discovery.

A. Our Standard of Review.

The Legislature has delegated to municipalities the power to regulate local

land use through the MLUL. In the LRHL, the Legislature also gave

municipalities the authority to designate an area as in need of redevelopment,

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provided the municipality follows the processes and procedures set forth in the

LRHL and MLUL. See N.J.S.A. 40A:12A-5 to -8.

Municipal governing bodies and planning boards "have an obligation to

rigorously comply with the statutory criteria for determining whether an area is

in need of redevelopment." 62-64 Main St., L.L.C. v. Mayor & Council of

Hackensack, 221 N.J. 129, 156 (2015). "[A]fter the municipal authorities have

rendered a decision that an area is in need of redevelopment, that decision is

'invested with a presumption of validity.'" Id. at 157 (quoting Levin v. Twp.

Comm. of Bridgewater, 57 N.J. 506, 537 (1971)). The New Jersey Supreme

Court has instructed that courts are "to interpret the powers granted to the local

planning board liberally and to accept its exercise of the powers so long as a

necessarily indulgent judicial eye finds a reasonable basis, [i.e.], substantial

evidence, to support the action taken." Levin, 57 N.J. at 537. In that regard,

"[r]edevelopment designations, like all municipal actions, are vested with a

presumption of validity." ERETC, L.L.C. v. City of Perth Amboy, 381 N.J.

Super. 268, 277 (App. Div. 2005) (citing Levin, 57 N.J. at 537). Accordingly,

"judicial review of a redevelopment designation is limited solely to whether the

designation is supported by substantial credible evidence." Ibid. Moreover,

courts "typically recognize that municipal bodies, 'because of their peculiar

A-0788-22

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knowledge of local conditions, must be allowed wide latitude in the exercise of

their delegated discretion.'" Wilson v. Brick Twp. Zoning Bd. of Adjustment,

405 N.J. Super. 189, 196 (App. Div. 2009) (quoting Booth v. Bd. of Adjustment

of Rockaway, 50 N.J. 302, 306 (1967)).

We review issues involving the "interpretation of the law and the legal

consequences that flow from established facts" de novo. Manalapan Realty, L.P.

v. Twp. Comm. of Manalapan, 140 N.J. 366, 378 (1995). Therefore, we accord

no deference to a trial court or municipal bodies when reviewing legal issues,

including statutory interpretation. 388 Route 22 Readington Realty Holdings,

LLC v. Township of Readington, 221 N.J. 318, 338 (2015).

B. The Settlement Agreement.

The LRHL governs the process a municipal governing body must follow

to designate an area as being in need of redevelopment. See N.J.S.A. 40A:12A-

5 to -8; see also Bryant v. City of Atlantic City, 309 N.J. Super. 596, 602-03

(App. Div. 1998) (describing the procedures under the LRHL for designating an

area as in need of redevelopment). First, the governing body of a municipality

must, by resolution, "authorize the planning board to undertake a preliminary

investigation to determine whether the proposed area is a redevelopment area

according to the criteria set forth in section 5" of the LRHL. N.J.S.A. 40A:12A-

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6(a). Next, in conducting its investigation, the planning board must give public

notice and conduct a public hearing. Ibid. An important part of that notice is to

inform the public if a municipality will be using its power of eminent domain in

a redevelopment area. N.J.S.A. 40A:12A-6(b)(3)(b) to (c). At the public

hearing or hearings, the planning board "shall hear all persons who are interested

in or would be affected by a determination that the delineated area is a

redevelopment area." N.J.S.A. 40A:12A-6(b)(4). Moreover, all "objections to

such a determination and evidence in support of those objections, given orally

or in writing, shall be received and considered and made part of the public

record." Ibid.

After completing its investigation, the planning board "shall" make a

recommendation to the municipal governing body as to whether the area, or any

part thereof, should be designated for redevelopment. N.J.S.A. 40A:12A-

6(b)(5)(a). Thereafter, the municipal governing body "may adopt a resolution

determining that the delineated area, or any part thereof, is a redevelopment

area." N.J.S.A. 40A:12A-6(b)(5)(b).

If an area is designated, then the municipal governing body is to adopt a

redevelopment plan by local ordinance. N.J.S.A. 40A:12A-7. That plan "may

include the provision of affordable housing in accordance with the 'Fair Housing

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Act.'" N.J.S.A. 40A:12A-7(b). A municipality can also contract with a

redeveloper. See N.J.S.A. 40A:12A-8(f); Bryant, 309 N.J. Super. at 603.

The trial court found that the Settlement Agreement expressly required the

Eastern Parcel to be reviewed in accordance with the LRHL and MLUL. The

trial court then found that:

[B]ased upon the extensive record presented, the review

of the Eastern Parcel as an area in need of

redevelopment and ultimate approval of the

Redevelopment Plan (inclusive of designation of [RR

Partners] as the redeveloper) was proper, statutorily

compliant[,] and [is] clearly supported by substantial

credible evidence at every step of the process.

The trial court's findings in that regard are supported by the substantial,

credible evidence in the record. The record establishes that the Borough and the

Planning Board followed the procedures required by the LRHL and MLUL. On

December 16, 2019, through a resolution, the Borough's Council directed the

Planning Board to investigate whether the Eastern Parcel should be designated

as an area in need of redevelopment. Thereafter, the Planning Board undertook

that investigation, gave notice, conducted public hearings, and made a

recommendation to designate the Eastern Parcel as an area in need of

redevelopment. The Borough's Council then adopted that recommendation in a

resolution. Finally, the Council requested the Planning Board to review the

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22

proposed redevelopment plan, adopted the Redevelopment Plan through an

ordinance, and designated RR Partners as the redeveloper through a resolution.

1. Whether the Settlement Agreement Complied with the LRHL.

SJ LLC contends that the process was not in compliance with the LRHL

because it was pre-determined in the Settlement Agreement. We reject that

argument for both factual and legal reasons.

Factually, a review of the Settlement Agreement establishes that it did not

mandate a result. While the Settlement Agreement clearly delineated that the

Borough would seek to designate the Eastern Parcel as an area in need of

redevelopment, it did not mandate the designation. Instead, in several

provisions, the Settlement Agreement expressly stated that the process for

designating the Eastern Parcel as an area in need of redevelopment had to

comply with the LRHL and MLUL. In that regard, the Settlement Agreement

stated:

[T]he settlement herein will, in part, provide [RR

Partners] with an opportunity to develop the Eastern

Parcel in accordance with this Agreement, conditioned

on [RR Partners'] compliance with the criteria and

procedure provided in [the MLUL], [the LRHL],

Affordable Housing Law, and other law and regulation

where applicable.

....

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. . . The parties hereto agree that this Agreement

is not in conflict with the MLUL, the LRHL[,] and/or

the municipal ordinances of [the Borough] and that

nothing herein is or shall be deemed by the Parties to

be in derogation thereof or of [the Borough's] and the

Planning Board's obligations and duties thereunder.

While the Settlement Agreement included a draft of the Redevelopment

Plan, a designation of RR Partners as the redeveloper, and a proposed

redevelopment agreement with RR Partners, those agreements and designation

were all conditioned on the Borough and the Planning Board following the

procedures required by the LRHL. Moreover, the Settlement Agreement

recognized that there could be judicial review of whether the contemplated

designations satisfied the criteria of the LRHL and MLUL.

SJ LLC argues that in an unpublished opinion, we voided an agreement

between a municipality and a developer because it constituted a binding contract

for redevelopment entered before following the required procedures to adopt a

redevelopment plan. So, SJ LLC contends we should void the Settlement

Agreement in this matter. We reject this argument for several reasons. First,

the case SJ LLC cites is unpublished and, therefore, not precedential or binding.

R. 1:36-3. Second, the facts of that case are distinguishable. In that case, the

municipality never passed an ordinance approving a redevelopment plan for the

subject property and failed to comply with the procedural requirements of the

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LRHL. Additionally, the parties' contract in that case granted the redeveloper

the exclusive right to enter a contract with the municipality to redevelop the

subject property for three years and prohibited the municipality from negotiating

with other developers. Third, and most importantly, we reject SJ LLC's

argument that, effectively, any settlement agreement that contemplates a future

course of action is void.

Initially, we note that the validity of the Settlement Agreement is not

clearly before this court. The court in the Federal Action retained jurisdiction

over the Settlement Agreement. Accordingly, the issue before us is whether the

Settlement Agreement dictated a result that violated the LRHL or MLUL so that

the designation should be vacated. As we have already explained, the Settlement

Agreement contemplated a process and bound the Borough to follow that

process. The Settlement Agreement did not, however, mandate the result. In

other words, a settlement agreement can require parties to follow procedures.

The validity of the result will depend on whether those procedures were properly

followed and were consistent with the law.

In addition, we reject SJ LLC's blanket argument concerning settlement

agreements because it would be inconsistent with well-established law. The

New Jersey Supreme Court has repeatedly held that settlement agreements are

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an appropriate way to resolve disputes and generally are to be encouraged and

enforced. Gere v. Louis, 209 N.J. 486, 500 (2012); Brundage v. Est. of

Carambio, 195 N.J. 575, 601 (2008); see also Rodriguez v. Raymours Furniture

Co., 225 N.J. 343, 359 (2016). Accordingly, numerous affordable housing cases

and land use matters are resolved with agreements setting forth how a

municipality and a developer or an advocacy group will proceed to undertake

steps to develop affordable housing. See, e.g., Friends of Peapack-Gladstone v.

Borough of Peapack-Gladstone Land Use Bd., 407 N.J. Super. 404, 422-23

(App. Div. 2009); E./W. Venture v. Borough of Fort Lee, 286 N.J. Super. 311,

328 (App. Div. 1996). Those settlement agreements, like the Settlement

Agreement in this matter, were not illegal because they require future processes.

Instead, the validity of those agreements turns on whether the future processes

comply with the law. See Friends of Peapack-Gladstone, 407 N.J. Super. at 422-

23; E./W. Venture, 286 N.J. Super. at 328 (explaining the requirements for a

settlement agreement to be approved by the court in an affordable housing

matter).

SJ LLC also cites to N.J.S.A. 40A:12A-8 and argues that a municipality

can only begin to implement a redevelopment plan after it has adopted a

redevelopment plan. SJ LLC then goes on to argue that because the Settlement

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Agreement had already appointed RR Partners as the redeveloper, it violated the

LRHL because the Redevelopment Plan was only adopted after the Planning

Board conducted its investigation and made its recommendation.

The law is clear that a "municipality must adopt a redevelopment plan

before the redevelopment project can be undertaken." Vineland Constr. Co. v.

Township of Pennsauken, 395 N.J. Super. 230, 252 (App. Div. 2007). Only after

adoption of the redevelopment plan is the municipality "afforded broad statutory

authority" to carry out the redevelopment project, including the authority to

select a private developer. Ibid. Here, however, the Borough did not begin

redevelopment until it had complied with the process for designating the Eastern

Parcel as an area in need of redevelopment and adopted the Redevelopment Plan.

The Settlement Agreement stated that RR Partners would be the redeveloper

provided that the Eastern Parcel was designated as an area in need of

redevelopment, and provided that the Borough adopted a redevelopment plan.

In other words, while the Settlement Agreement clearly contemplated and

required RR Partners to be named the redeveloper, RR Partners only became the

redeveloper after the Borough and the Planning Board had complied with the

processes, procedures, and criteria of the LRHL and MLUL.

2. Whether the Settlement Agreement Constituted Contract Zoning.

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"Zoning is an exercise of the police power to serve the common good and

general welfare." V. F. Zahodiakin Eng'g Corp. v. Zoning Bd. of Adjustment of

Summit, 8 N.J. 386, 394 (1952). "It is elementary that the legislative function

may not be surrendered or curtailed by bargain or its exercise controlled by the

considerations which enter into the law of contracts." Ibid. So, a municipality

cannot vest in a property owner "by contract a special privilege or exemption to

use its premises in violation of the general rule binding upon all other

landowners within the zone." Id. at 395. Therefore, when a contract effectively

bargains away a municipality's "delegated legislative function," the contract will

be voided as contract zoning. Suski v. Mayor & Comm'rs of Beach Haven, 132

N.J. Super. 158, 164 (App. Div. 1975); Midtown Props., Inc. v. Township of

Madison, 68 N.J. Super. 197, 207-08 (Law Div. 1961). In short, contract zoning

occurs when a municipality makes a contract with a private developer or

property owner to suspend the zoning law for the benefit of that developer or

property owner. See Livingston Builders, Inc. v. Township of Livingston, 309

N.J. Super. 370, 381-82 (App. Div. 1998); see also Toll Brothers, Inc. v.

Township of W. Windsor, 334 N.J. Super. 77, 94 (App. Div. 2000); Warner Co.

v. Sutton, 274 N.J. Super. 464, 471 (App. Div. 1994).

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SJ LLC argues that the Settlement Agreement should be voided because

it was contract zoning. According to SJ LLC, the Settlement Agreement

required the Borough to "adopt zoning changes to the Eastern Parcel without

public input" in exchange for RR Partners giving the Borough the Western

Parcel.

The trial court rejected that argument, reasoning that "the specific terms

of the Settlement Agreement, which have been thoroughly reviewed by the

court, do not rise to the level of 'contract zoning' as alleged." We agree because

the Settlement Agreement specifically required the Borough and the Planning

Board to comply with the LRHL and MLUL. As we have already detailed, the

Borough did not suspend the zoning laws; rather, the Borough and the Planning

Board went through the process of determining whether the Eastern Parcel was

an area in need of redevelopment as required by the LRHL and MLUL.

3. Whether the Settlement Agreement Violated the Holding in

Whispering Woods.

In Whispering Woods, the Law Division considered a situation where a

developer applied for approval from a municipal planning board, the planning

board denied the application, the developer brought an action in lieu of

prerogative writs challenging that denial, and ultimately the board and the

developer settled the litigation. 220 N.J. Super. at 163-66. The question

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presented to the Whispering Woods court was whether that settlement was

illegal. Id. at 171-72. The court reasoned:

It would be unthinkable that a [p]lanning [b]oard, for

example, charged with the proper enforcement of local

planning and zoning ordinances deny an application

only to turn around and negotiate a final, binding

approval of it in a modified form to settle the very

litigation which ensued upon the denial. If such a

settlement could be final and binding that could be the

hypothetical result. But it cannot be. The settlement

must necessarily (as it was here) be conditioned upon a

public hearing on the agreed plan—just as if a new

application were being presented to the Board. In other

words, any settlement must lead to a further official

action by the public body. That action is subject to all

of the statutory conditions necessary to vindicate the

public interest—notice, public hearing, public vote,

written resolution, etc. In addition, it is further subject

to the complaint in lieu of prerogative writs.

[Id. at 172 (citation omitted).]

Ultimately, the court in Whispering Woods found that the settlement agreement

was not illegal because the agreement between the board and developer was a

tentative agreement subject to public presentation, a public hearing, and a public

vote. Id. at 173.

SJ LLC argues that the Settlement Agreement in this matter violated the

rationale and rule laid down in Whispering Woods because it circumvented the

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obligation for a public settlement hearing. The record and law do not support

that argument.

Before adopting a resolution to accept the Settlement Agreement, the

Borough's Council held a public meeting and heard public comment on the

proposed settlement. Then, the Council adopted the Settlement Agreement by

resolution. As already detailed, the Council thereafter authorized the Planning

Board to engage in an investigation as to whether the Eastern Parcel was an area

in need of redevelopment. That investigation involved further public hearings

and more public comment. In short, the Settlement Agreement did not violate

the reasoning or rule of Whispering Woods, and the trial court correctly rejected

that argument.

C. The Redevelopment Designation.

The LRHL authorizes a municipality to declare property to be an area in

need of redevelopment provided that the property meets one of eight criteria.

See N.J.S.A. 40A:12A-5(a) to (h). After conducting its investigation, including

hearing testimony from three expert witnesses, the Planning Board found that

the Eastern Parcel qualified as an area in need of redevelopment under

subsections (b) and (d) of N.J.S.A. 40A:12A-5.

1. Subsection (b) of N.J.S.A. 40A:12A-5.

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Subsection (b) of N.J.S.A. 40A:12A-5 states that an area can be

considered in need of redevelopment if the following conditions are present:

The discontinuance of the use of a building or buildings

previously used for commercial, retail, shopping malls

or plazas, office parks, manufacturing, or industrial

purposes; the abandonment of such building or

buildings; significant vacancies of such building or

buildings for at least two consecutive years; or the same

being allowed to fall into so great a state of disrepair as

to be untenantable.

[N.J.S.A. 40A:12A-5(b).]

The Planning Board found that the Eastern Parcel qualified as an area in need of

redevelopment under subsection (b) because it "was formerly developed with

industrial buildings whose use was discontinued prior to being removed for

health, safety and public welfare reasons." The trial court found:

The bleak condition of the Eastern Parcel, inclusive of

its environmental condition due to the petroleum

storage and associated industrial use along with the

current dilapidated condition of underground piping,

containment walls, paved areas, derelict piers and

docks (as described in each of the experts' reports and

testimony) more than satisfied the threshold burden of

proof and clearly provided substantial evidence to

support the Planning Board's determination that the

Eastern Parcel is an area in need of redevelopment

pursuant to both N.J.S.A. 40A:12A-5(b) and [(d)] of the

LRHL.

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The findings by both the Planning Board and the trial court are supported

by substantial, credible evidence in the record and are consistent with the plain

language of the LRHL. The evidence before the Planning Board included

evidence that Hess had decommissioned the site in 2013 and thereafter

demolished various buildings and structures. There was also evidence

supporting the trial court's finding that even after most of the buildings had been

demolished, the Eastern Parcel still contained underground piping, containment

walls, and paved areas.

SJ LLC argues that there were no buildings remaining on the Eastern

Parcel and, therefore, the parcel did not qualify for redevelopment under

subsection (b). We reject that argument for two reasons. First, as already noted,

the trial court found that there were certain remaining structures and

infrastructure that had been associated with Hess' use of the property as an oil

terminal with buildings. Second, it would be an unduly narrow interpretation of

subsection (b) to preclude its application to recently demolished buildings that

had posed a public safety hazard. Indeed, to accept that interpretation would

encourage property owners not to deal with public safety issues as quickly as

possible.

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Interpreting subsection (b) to apply to recently demolished buildings or

structures is also consistent with subsection (c) of N.J.S.A. 40A:12A-5.

Subsection (c) applies to "unimproved vacant land," but only if that land "has

remained so for a period of ten years prior to adoption of the resolution ."

N.J.S.A. 40A:12A-5(c).

2. Subsection (d) of N.J.S.A. 40A:12A-5.

N.J.S.A. 40A:12A-5(d) allows land to be classified as in need of

redevelopment if the following condition is present:

Areas with buildings or improvements which, by reason

of dilapidation, obsolescence, overcrowding, faulty

arrangement or design, lack of ventilation, light and

sanitary facilities, excessive land covered, deleterious

land use or obsolete layout, or any combination of these

or other factors, are detrimental to the safety, health,

morals, or welfare of the community.

The record also contains substantial, credible evidence that the Eastern Parcel

satisfied the criteria under subsection (d).

Gregory's report to the Planning Board stated that "the site has been in

various states of disrepair and environmental contamination" for years, and it

had various "improvements," including a pier, underground piping, containment

walls, abandoned equipment, and other improvements above and below ground.

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34

Grygiel provided evidence corroborating Gregory's position. After detailing

how the Eastern Parcel had previously been developed as a Hess tank farm used

for the storage, transfer, and distribution of petroleum products, Grygiel's report

concluded:

Therefore, the obsolete and deleterious conditions of

the study area are detrimental to the safety, health, and

welfare of the residents, workers, patrons, and visitors

of these nearby residential and commercial properties

and publicly accessible open spaces.

The Planning Board accepted the reports and testimonies of Grygiel and

Gregory that those obsolete and abandoned improvements were detrimental to

the safety, health, and welfare of the community. In that regard, we note that a

board may accept or reject the testimony of witnesses. See Kramer v. Bd. of

Adjustment, Sea Girt, 45 N.J. 268, 288 (1965). Moreover, there really was no

dispute that the Eastern Parcel contained obsolete improvements. "So long as

there is substantial evidence in the record, a court may not interfere with or

overturn the factual findings of a municipal board." New Brunswick Cellular

Tel. Co. v. Twp. of Edison Zoning Bd. of Adjustment, 300 N.J. Super. 456, 465

(Law Div. 1997). In short, the expert testimonies of Gregory and Grygiel

support the Planning Board's and Borough's determinations that the Eastern

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35

Parcel was an area in need of redevelopment under subsection (d) of N.J.S.A.

40A:12A-5.

SJ LLC also argues that Grygiel's and Gregory's expert opinions were net

opinions. The trial court rejected that argument, finding that both Grygiel's

reports and testimony and Gregory's report and testimony provided factual data

that supported their conclusions. We agree with the trial court.

"The net opinion rule is a 'prohibition against speculative testimony.'"

Ehrlich v. Sorokin, 451 N.J. Super. 119, 134 (App. Div. 2017) (quoting Harte v.

Hand, 433 N.J. Super. 457, 465 (App. Div. 2013)). Expert testimony "is

excluded if it is based merely on unfounded speculation and unquantified

possibilities." Townsend v. Pierre, 221 N.J. 36, 55 (2015) (quoting Grzanka v.

Pfeifer, 301 N.J. Super. 563, 580 (App. Div. 1997)). An expert's "bare

conclusions, unsupported by factual evidence," are inadmissible. Funtown Pier

Amusements, Inc. v. Biscayne Ice Cream & Asundries, Inc., 477 N.J. Super.

499, 516 (App. Div. 2024) (quoting Buckelew v. Grossbard, 87 N.J. 512, 524

(1981)).

Our review of the reports and testimonies of Grygiel and Gregory

establishes that their opinions were based on specific and detailed facts. In

short, the opinions were not net.

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36

We also reject SJ LLC's argument that the Planning Board improperly

delegated to Grygiel its duty to make an investigation and did not conduct an

independent investigation. It is well-established that a planning board may rely

on consultants in conducting its investigation. See Concerned Citizens of

Princeton, Inc. v. Mayor & Council of Princeton, 370 N.J. Super. 429, 462-63

(App. Div. 2004) (explaining that "nothing" in the relevant provision of the

LRHL "suggests that a planning board may not rely on a redevelopment

consultant in conducting its investigation" into whether an area is in need of

redevelopment).

D. The Redevelopment Plan.

SJ LLC asserts that the trial court erred because the record did not contain

substantial, credible evidence to support the Borough's adoption of the

Redevelopment Plan. The trial court found that the Borough's Council and the

Planning Board heard testimony, examined the Redevelopment Plan "section by

section," and considered the Redevelopment Plan's consistency with the

Borough's Master Plan. Therefore, the trial court found that the adoption of that

Redevelopment Plan complied with the LRHL and MLUL. Substantial, credible

evidence supports the trial court's findings.

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37

After the Council adopted the Redevelopment Plan, it sent the

Redevelopment Plan to the Planning Board for a consistency review. The

Planning Board then heard testimony, including testimony from Gregory.

Gregory testified that the Borough's Master Plan, as well as the 2012 and 2014

Re-Examination Reports, supported the Redevelopment Plan. Moreover,

Gregory testified that the Redevelopment Plan furthered several goals of the

Master Plan, including preserving views and access to the Hudson River.

Consequently, we discern no grounds for vacating the Redevelopment Plan.

E. The Alleged Ethical Violations.

The Ethics Law creates a statutory code of ethics that governs when a

disqualifying conflict of interest arises for a local government official. So, the

Ethics Law and the common law guide courts in evaluating when conflicts arise.

See Piscitelli v. Garfield Zoning Bd. of Adjustment, 237 N.J. 333, 349-50

(2019); Grabowsky v. Township of Montclair, 221 N.J. 536, 552 (2015). "The

overall objective 'of conflict-of-interest laws is to ensure that public officials

provide disinterested service to their communities' and to 'promote confidence

in the integrity of governmental operations.'" Piscitelli, 237 N.J. at 349 (quoting

Thompson v. City of Atlantic City, 190 N.J. 359, 364 (2007)).

The Ethics Law provides:

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38

No local government officer or employee shall act in

his [or her] official capacity in any matter where he [or

she], a member of his [or her] immediate family, or a

business organization in which he [or she] has an

interest, has a direct or indirect financial or personal

involvement that might reasonably be expected to

impair his [or her] objectivity or independence of

judgment.

[N.J.S.A. 40A:9-22.5(d).]

See also N.J.S.A. 40A:9-22.2 (setting forth the Legislature's declarations

concerning the duties of local government officials).

"We must construe N.J.S.A. 40A:9-22.5(d) to further the Legislature's

expressed intent that '[w]henever the public perceives a conflict between the

private interests and the public duties of a government officer,' 'the public's

confidence in the integrity' of that officer is 'imperiled.'" Piscitelli, 237 N.J. at

351 (alteration in original) (quoting N.J.S.A. 40A:9-22.2(b) to (c)).

Disqualification is required when a public official has (1) a direct pecuniary

interest; (2) an indirect pecuniary interest; (3) a direct personal interest; or (4)

an indirect personal interest. Grabowsky, 221 N.J. at 553 (quoting Wyzykowski

v. Rizas, 132 N.J. 509, 525 (1993)).

"'[A] court's determination "whether a particular interest is sufficient to

disqualify is necessarily a factual one and depends upon the circumstances of

the particular case."'" Piscitelli, 237 N.J. at 353 (quoting Grabowsky, 221 N.J.

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39

at 554). "A conflicting interest arises when the public official has an interest

not shared in common with the other members of the public." Wyzykowski, 132

N.J. at 524. Accordingly, "[t]he ethics rules must be applied with caution, as

'[l]ocal governments would be seriously handicapped if every possible interest,

no matter how remote and speculative, would serve as a disqualification of an

official.'" Grabowsky, 221 N.J. at 554 (second alteration in original) (quoting

Wyzykowski, 132 N.J. at 523). "It is essential that municipal offices be filled

by individuals who are thoroughly familiar with local communities and

concerns." Ibid. Consequently, conflict-of-interest rules "do not apply to

'remote' or 'speculative' conflicts because local governments cannot operate

effectively if recusals occur based on ascribing to an official a conjured or

imagined disqualifying interest." Piscitelli, 237 N.J. at 353.

SJ LLC argues that there were three conflicts of interest affecting the

Settlement Agreement and the designation of the Eastern Parcel as an area in

need of redevelopment. Concerning the Settlement Agreement, SJ LLC

contends that the Mayor and Council members had conflicts of interest and

should not have approved the Settlement Agreement. SJ LLC also argues that

Gregory had a conflict of interest related to the Settlement Agreement and

should not have been involved in the process. Regarding the designation, SJ

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40

LLC alleges that Grygiel had a conflict of interest because he had previously

worked for RR Partners.

The trial court considered and rejected each of these alleged conflicts of

interest. Concerning the Mayor and the Council members, the trial court found

that there was no evidence that they had direct or indirect financial or personal

interests that precluded them from approving the Settlement Agreement. In that

regard, the trial court reasoned that the allegations against the Mayor and the

Council members in the Federal Action did not create a conflict of interest

because the allegations were just that—allegations.

We agree with the conclusion reached by the trial court. The current

record does not allow us to assess the validity of the allegations made against

the Mayor and the Council members in the Federal Action. While the allegations

in the Federal Action raised questions, there were no findings of fact on those

allegations. Moreover, the federal court allowed the Settlement Agreement to

be entered and retained jurisdiction to enforce the Settlement Agreement. Given

those facts, we discern no basis to reverse the trial court's determinations

concerning the alleged ethical violations by the Mayor and the Council

members.

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41

For similar reasons, we also reject SJ LLC's arguments concerning

Gregory. Gregory did not directly participate in the approval of the Settlement

Agreement. Therefore, it is not clear that her involvement in the process tainted

the Settlement Agreement or the designation. Moreover, as with the allegations

against the Mayor and the Council members, the allegations against Gregory in

the Federal Action were never proven.

Finally, we discern no basis for vacating the redevelopment designation

because of Grygiel's participation. The record is clear that Grygiel disclosed his

prior affiliation with RR Partners during the investigation of the redevelopment

designation. Moreover, Grygiel was appointed as a "special planner" to the

Planning Board. Therefore, it is not even clear that he is governed by the Ethics

Law, which applies to a "local government officer or employee." N.J.S.A.

40A:9-22.5(h). Just as importantly, it was the Planning Board that was charged

with investigating whether the Eastern Parcel met the criteria for the

redevelopment designation. The Planning Board had the ability to evaluate

Grygiel's reports and testimony, and we discern no basis to vacate the

designation because of Grygiel's involvement.

F. The Request for Discovery.

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42

Discovery determinations are within the discretion of the trial court.

Brugaletta v. Garcia, 234 N.J. 225, 240 (2018). Appellate courts use an abuse

of discretion standard in evaluating trial courts' rulings on discovery issues.

Cap. Health Sys., Inc. v. Horizon Healthcare Servs., Inc., 230 N.J. 73, 79-80

(2017). SJ LLC argues that it was entitled to discovery to seek information

concerning the interests of various Council members and whether they had

personal interests that created conflicts when they signed the Settlement

Agreement.

We discern no abuse of discretion in the trial court's decision to deny SJ

LLC's request for discovery. SJ LLC filed complaints in lieu of prerogative

writs, and such actions are generally limited to the record created before a

municipal board or council. See Willoughby v. Plan. Bd. of Deptford, 306 N.J.

Super. 266, 273-74 (App. Div. 1997) (citing Kramer, 45 N.J. at 289); see also

R. 4:69-4 (governing actions in lieu of prerogative writs and providing that

"[t]he scope and time to complete discovery . . . will be determined at the case

management conference and memorialized in the case management order").

Furthermore, because SJ LLC did not demonstrate that the discovery it was

seeking was relevant, granting its request would have simply led to further

delays.

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III.

In summary, we have considered and rejected the numerous arguments

presented by SJ LLC. We believe we have addressed all the arguments raised,

but to the extent that there are some arguments we did not address, we deem

those arguments to be without sufficient merit to warrant discussion in a written

opinion. See R. 2:11-3(e)(1)(E). We acknowledge that this has been a long

process involving applications for variances from zoning ordinances,

contentious litigation, and affordable housing litigation. Our review and

conclusions are based on the extensive record presented on this appeal. Having

reviewed the record and governing law, we discern no basis to reverse the trial

court's judgment dismissing SJ LLC's complaints in lieu of prerogative writs.

Affirmed.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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