NJ appeals court sides with Sparta Township in warehouse dispute

A New Jersey appeals court upheld the decision of Judge Stuart Minkowitz against Diamond Chip Realty (DCR) in its ongoing effort to build a warehouse in Sparta, affirming the town Planning Board's decision to hold a jurisdictional hearing, restart its review of the application, and deny DCR's request for automatic approval.

The project, which was first proposed to the Sparta Township Planning Board in November 2021, has faced years of opposition from local residents.

While the matter was pending before the Planning Board, two objectors filed an application with Sparta's Zoning Board, arguing that the site's proposed use was akin to a trucking terminal. In this case, the Planning Board would not have jurisdiction over the application.

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In May 2022, as detailed in the appellate court's 14-page ruling, the Zoning Board concluded that it lacked jurisdiction to consider the objectors' application. The objectors challenged this decision in a case that was ultimately dismissed by Judge Minkowitz that December. This ruling was later affirmed by the Appellate Division.

After a series of revisions to DCR's initial application, and the disqualification of eight Planning Board members, a reconstituted board unanimously determined in 2024 that it would consider DCR's application anew. According to the ruling, the board reconvened about one month later and counsel for one of the objectors once again raised the question regarding the Planning Board's jurisdiction to hear the application, suggesting it might be governed by the Zoning Board.

On July 1, 2024, DCR filed an action seeking an order prohibiting the Planning Board from holding a jurisdictional hearing on the application, of the Planning Board's decision to start the hearing from the beginning, and either the automatic approval of its application or an order for the Planning Board to complete its hearing by a specified date, among other things.

In a 21-page written decision, Minkowitz denied this application, concluding that the Planning Board acted within its authority, and that granting automatic approval of the application would be inconsistent with the intent of the Municipal Land Use Law (MLUL).

Now, in their July 20 ruling, a panel of three appellate judges upheld Minkowitz's decision on all three counts, determining that the town's Planning Board is correct in hearing the application, that it can start the hearing over, and that the application would not be automatically approved by the court.

"The Township of Sparta recognizes that the Appellate Court's recent decision brings full circle the important legal issue first raised four years ago by the initial objectors in this case, that is, whether the Planning Board has subject matter jurisdiction over the application as presented by Diamond Chip Realty," said Anand Dash, attorney for Sparta Township.

The emailed statement continued, "The Appellate Court's decision affirms the legal principle that the issue of subject matter jurisdiction is a fundamental and threshold question that must be decided by the Planning Board in this matter."

On the first count, the appellate judges said, "We agree with Judge Minkowitz that the decision of the Planning Board to hold a hearing focusing on the Planning Board's possession of subject matter jurisdiction was correct."

As detailed in the written ruling, planning and zoning boards obtain their jurisdiction through the Municipal Land Use Law, which, "enables and defines the limits of a municipality's procedural and substantive power to regulate land development within its borders."

"It was both procedurally and substantively appropriate for the Planning Board to consider the preliminary question of whether the application was properly brought under the MLUL," reads the ruling.

On the second count, in the wake of the replacement of multiple Planning Board members and the number of revisions made to the original plans, the judges determined that the new Planning Board was justified in considering the application from the beginning.

Finally, the appellate judges said that Minkowitz correctly denied DCR's demand for automatic approval of its application.

"Judge Minkowitz correctly held the Planning Board acted promptly to initiate proceedings on DCR's application once it was deemed complete in October 2023," reads the ruling. "He further determined that the automatic approval sought by DCR would have been premature, as it was not yet established whether the matter was properly before the Planning Board. We find no error in this analysis and agree with both conclusions."

An attorney listed for Diamond Chip Realty, LLC did not immediately return a request for comment on the court's decision.

"From my perspective, the Sparta Township Planning Board is satisfied with the appellate court ruling, which provides a clear path as to the land use procedures at hand," said Sparta Planning Board attorney Kenneth Porro in an emailed statement. "The bottom line is that any DCR development application must comply with the New Jersey Municipal Land Use Laws with full notice to all interested parties.”

This article originally appeared on NorthJersey.com: NJ appeals court sides with Sparta Township in warehouse dispute