REGENCY GARDENS NURSING HOMES v. ZONING BOARD OF ADJUSTMENT OF THE TOWNSHIP OF WAYNE

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               APPROVAL OF THE APPELLATE DIVISION

                                  SUPERIOR COURT OF NEW JERSEY
                                  APPELLATE DIVISION
                                  DOCKET NO. A-2283-13T1



REGENCY GARDENS NURSING
HOMES,

     Plaintiff-Appellant,

v.

ZONING BOARD OF ADJUSTMENT
OF THE TOWNSHIP OF WAYNE and
HEALTH RESOURCES OF NEW JERSEY,
L.L.C.,

     Defendant-Respondents.

___________________________________

         Argued November 13, 2014 – Decided August 27, 2015

         Before Judges Fuentes, Kennedy and O'Connor.

         On appeal from Superior Court of New Jersey,
         Law Division, Passaic County, Docket No. L-
         2635-13 and L-4505-12.

         John F. Casey argued the cause for appellant
         (Wolff & Samson, P.C., attorneys; Mr. Casey,
         on the brief; Elisa M. Pagano, on the
         brief).

         Allison Britt-Anderson argued the cause for
         respondent Zoning Board of Adjustment of The
         Township of Wayne (Hanse Anderson, L.L.P.,
         attorneys; Ms. Britt- Anderson, on the
         brief; Patrick C. Anderson, on the brief).

         Jerome A. Vogel argued the cause for
         respondent Health Resources of N.J., L.L.C.
         (Jeffer, Hopkinson & Vogel, attorneys; Mr.
         Vogel, on the brief; David H. Altman, on the
         brief).

PER CURIAM

    Defendant Health Resources, L.L.C. (Health) obtained use

and bulk variances and site plan approval from defendant Wayne

Township Zoning Board (Board) to build an inpatient

rehabilitation facility in Wayne Township.     Plaintiff, Regency

Nursing Homes (Regency), filed two complaints, later

consolidated, in lieu of prerogative writs seeking to reverse

the Board's decision.     On December 10, 2013, the trial court

dismissed plaintiff's amended complaint with prejudice.

    Plaintiff appeals, contending the trial court erred by

affirming the Board's decision to grant the use variance and a

bulk variance that allegedly failed to allow Health to construct

the required number of parking spaces at the proposed site.

After reviewing the record, the briefs, and the applicable legal

principles, we affirm.

                                  I

    Health seeks to build a three-story, 92,000 square-foot,

short-term inpatient rehabilitation facility in the business

zone of Wayne Township.    Because this zone does not permit this

use, in March 2012 Health filed an application with the Board

for a use variance.     Health also sought bulk variances and site




                                  2                         A-2283-13T1
plan approval in its application, but the application for the

use variance was bifurcated and decided before the Board

considered the other relief Health sought.

    The Board held hearings over the course of three days on

the application for the use variance.    We briefly summarize the

material evidence.   Health's owner, William G. Burris, Jr.,

testified that he has been in the nursing home business for

thirty years but, due to changes in the nursing home industry,

decided to build a post-acute or subacute rehabilitation

facility in Wayne Township.   The proposed 124-bed facility would

provide short-term, inpatient rehabilitation services to

patients recently discharged from hospitals; Burris anticipates

that most of those admitted would be orthopedic patients.     He

stated that hospitals have been referring patients to subacute

facilities for rehabilitation for "a long time," and need

facilities of the kind Burris intends to build so that patients

can be properly rehabilitated and thus avoid readmission to a

hospital.

    The project plan includes a 15,000 square foot area for

physical therapy.    The centerpiece of the rehabilitation area is

a pool in which treadmills can be easily submerged for a

patient's use.   Burris indicated that it was his understanding

that using treadmills in the water enables a patient to move an




                                 3                          A-2283-13T1
afflicted area of the body without feeling pain.     Burris

testified that he chose the site because, among other things, it

borders William Paterson University and he wants to make the

facility "a teaching type facility."     He has had meetings with

the university about making the facility a "teaching arm for

their kinesiology department."

    The average stay in the facility is expected to be between

thirteen to nineteen days.    The facility will not be designed

for and is not intended for long term care, such as a nursing

home.   He also testified the facility would be for profit, but

would be Medicare and Medicaid certified.

    Health's engineer and site-plan designer, Gordon Meth,

testified that there would be additional traffic generated from

the facility, but the quantity of traffic would be substantially

less than that which would be produced from a permitted use.

Meth also noted that the proposed project adhered to the bulk

requirements of the business zone, with the exception of the

floor area ratio and building height requirements.

    Specifically, the floor area ratio would be .67 when the

maximum permitted is .15.    However, Meth pointed out that a

majority of the facility's 131 parking spaces would be in an

underground garage, making the facility less oversized than it

otherwise would be for the site.     Although the proposed height




                                 4                            A-2283-13T1
of the facility is 39.4 feet, Meth noted that the height is only

4.4 feet above the maximum permitted height of 35 feet.1

Further, the proposed facility not only borders William Paterson

University but also St. Joseph's Hospital, both of which have

taller structures on their respective properties.

     Although Burris made it clear he was not going to operate a

long-term care facility, Regency's expert health care planner,

Martin Parker, testified that the proposed facility was a

nursing home.   He reasoned the facility was a nursing home

because nursing homes can also provide subacute care.   He did

not address whether an entity that provides only subacute

services over a period of less than three weeks can be regarded

as a nursing home.

     Parked contended that there was no need for the proposed

facility because there are eight nursing homes in Wayne Township

and the number of patients in these and in nursing homes in

general has declined over the last several years.2   He also

testified that the other nursing homes in the township can

1
  During the hearing on the application for the bulk variances
and site plan approval, Health's attorney stipulated that the
building height would be 38.4 feet.
2
  Parker indicated the decline in the use of nursing homes is due
to the fact that senior citizens are healthier than in previous
years and many resort to using alternative living arrangements,
such as assisted living, before resorting to moving into a
nursing home.



                                5                           A-2283-13T1
provide subacute care, including rehabilitation, and that in the

township alone there are 300 subacute care beds.

    Parker did not, however, provide the utilization rates of

those 300 beds.   In fact there was no evidence the need for

subacute services has declined; moreover, Parker conceded the

need for subacute care is not age-related.   Further, there is no

evidence any of the other nursing homes offer the specific kind

of hydrotherapeutic rehabilitation Burris seeks to provide in

his proposed facility.

    At the conclusion of the hearing, the Board voted in favor

of granting the use variance.   In its resolution, the Board

stated in relevant part:

         The Board understood that other nursing
         homes in the Township provide some of the
         services that will be offered by the
         proposed facilities. Nevertheless, the
         Board found that the specific services being
         provided, in the manner they are being
         provided, . . . were not a nursing home, but
         a distinctly different use than what exists
         in the other eight (8) facilities in the
         Township . . . . Accordingly, the use was
         determined to be inherently beneficial,
         which satisfied the positive criteria test
         for the granting of the d(1) variance.
         Therefore, the applicant addressed the Sica
         balancing test. . . . The only detrimental
         effect found was traffic flow and the
         Applicant stated it would restrict left
         turns out of the site to address concerns
         raised by the public. Further, the amount
         of traffic generated by this use is less
         than what would be generated by a permitted
         use.



                                6                         A-2283-13T1
            . . . .

            In reviewing the application plans and
            testimony, the Board concludes that the
            applicant has met both the positive and
            negative criteria that are required for the
            Board to grant the use variance relief
            specifically being sought. The Board notes
            that the proposed use is inherently
            beneficial, which itself satisfies the
            positive criteria test.

            Turning to the negative criteria, the Board
            concludes that the application as submitted
            does not negatively impact public good, the
            zone plan or the zone scheme of the area.
            The Applicant showed that it addressed a
            potential land-use-related detrimental
            effect (related to traffic movements) and
            that the traffic amount would be less than
            what could be generated by a permitted use.
            Further, the Applicant showed that the
            project advances goals set forth in the
            Master Plan. The Board concludes there are
            no substantial detriments and that the cited
            benefits outweigh the detriments.

    The Board granted the use variance subject to, among other

things, any site plan approved pursuant to 
N.J.S.A. 40:55D-49

and 52, and further directed the applicant to comply with all

township ordinances and federal, state, and county

"requirements."

    One of Regency's contentions is that the hearing on

Health's request for a use variance should not have been

bifurcated from its application for bulk variances and site plan

approval.    Regency argued that the evidence adduced at the




                                 7                         A-2283-13T1
hearing to consider Health's application for bulk variances and

site plan approval may have affected the Board's decision to

grant a use variance.   Thus, we briefly summarize the pertinent

evidence adduced at the second hearing.

    Health's site engineer, Bryan Vandergheynst, testified that

the project would be in compliance with all business zone

requirements with the exception of the proposed floor area ratio

and the height of the building.       He also noted that the new

building would substantially reduce the rate of runoff that

currently exists, and would eliminate steep man-made slopes and

protect natural ones.

    Health's expert planner, Christine Cofone, noted that the

surrounding land uses were commercial and intensive, and that

the university has multiple buildings on its property that are

as tall as or taller than the proposed building.       She testified

the proposed facility would be consistent with the "character"

of the area and would not be a "negative impact."

    Further, although the floor area ratio would be .67, a

portion of the structure would be underground, making the actual

floor area ratio .48.   But whether the floor area ratio were .67

or .48, she opined the size of the proposed structure would not

cause a substantial detriment to the public good or to the zone

plan because the storm water runoff would be less than what it




                                  8                           A-2283-13T1
is now and the traffic would be less than what a permitted use

would generate.    In addition, the impervious coverage would be

reduced if the proposed structure were built.

    Regency's professional planner, engineer Michael Kauker,

conceded that the proposed use would be inherently beneficial.

However, he opined the floor area ratio would cause a

substantial detriment to the zone plan because it would be over

four-and-a-half times the .15 permitted in the business zone.

He acknowledged the university's buildings and the hospital are

larger, but pointed out those buildings are on proportionately

larger sites.    Further, there are smaller buildings on other

adjacent lots.

    The zoning board approved Health's application for bulk

variances and its site plan.   In its findings Board noted, in

pertinent part, that

         [i]n reviewing the application plans and
         testimony, the Board concludes that the
         applicant has met both the positive and the
         negative criteria that are required in order
         for the Board to grant the use variance
         relief specifically being sought. The Board
         notes that the applicant made a compelling
         case: the use continues to be inherently
         beneficial; the detriment of the massiveness
         of the structure does not outweigh the
         benefit because the actual use is less
         intense than an otherwise permitted use; in
         the context of the neighborhood (e.g. the
         hospital and William Paterson University),
         this is [a] unique situation in which the
         larger floor area can be accommodated;



                                 9                         A-2283-13T1
         placing the parking underneath the building
         enables attention to the environmental
         considerations of the subject property;
         given the proximity of the subject property
         to the hospital and the university the site
         is particularly suited to the use; goals in
         the Master Plan are furthered. Accordingly,
         the Board concludes that the application as
         submitted does not negatively impact the
         public good, the zone plan nor the zone
         scheme of the area.

         With respect to the parking issue, the
         parking standards in the ordinance do not
         apply because the Board found that this
         proposed use is not the same as a "nursing
         home." This finding was also the crux of
         the d(1) variance approved [at the previous
         hearing].

         . . . .

         The Board notes that the man-made slopes
         will be removed, runoff will be reduced and
         impervious coverage will be reduced.
         Further, the Board is satisfied that the
         subject property in question will be
         stabilized and restored to the extent
         possible consistent with the goals and
         objectives of the Environmental Protection
         ordinance.

    Regency filed complaints in lieu of prerogative writs

following the adoption of each resolution; both complaints were

eventually consolidated.   Following a hearing, the trial court

affirmed the Board's decision to approve the variances and site

plan Health sought.

    In this appeal, Regency contends, among other things, that

the Board: (1) failed to consider whether there was a need for




                                10                        A-2283-13T1
another nursing home before finding that the use was inherently

beneficial and thus its approval of the use variance was

arbitrary, capricious and unreasonable; (2) improperly granted

the use variance under the mistaken belief the proposed use was

not a nursing home; (3) failed to make adequate findings that

the proposed use would not substantially impair the intent and

purpose of the zone plan and zoning ordinance; (4) improperly

bifurcated from the application for a use variance from the

other variances Health sought; and (5) granted a bulk variance

that allowed only half of the parking spaces required for this

use.

                               II

       We apply the same standard the Law Division must apply in

reviewing a decision of the zoning board.    Bressman v. Gash, 
131 N.J. 517, 529 (1993); D. Lobi Enters., Inc. v. Planning/Zoning

Bd. of Sea Bright, 
408 N.J. Super. 345, 360 (App. Div. 2009).

Decisions of zoning boards constitute quasi-judicial actions of

municipal administrative agencies, Willoughby v. Planning Bd. of

Deptford, 
306 N.J. Super. 266, 273 (App. Div. 1997), and they

are presumed to be valid, Cell S. of N.J., Inc. v. Zoning Bd. Of

Adj. of W. Windsor Twp., 
172 N.J. 75, 81 (2002).    "[A]n

overriding principle of judicial review of variance decisions by

boards of adjustment is that, assuming an adequate basis in the




                                 11                         A-2283-13T1
record for a board's conclusions, deference to the judgment of

local zoning boards ordinarily is appropriate."           Lang v. Zoning

Bd. of Adj. of N. Caldwell, 
160 N.J. 41, 58 (1999).

    The question is whether the decision of the zoning board

"'is supported by the record and is not so arbitrary,

capricious, or unreasonable as to amount to an abuse of

discretion.'"   New Brunswick Cellular Tel. Co. v. Bd. of Adj. of

S. Plainfield, 
160 N.J. 1, 14 (1999) (quoting Smart SMR of N.Y.,

Inc. v. Borough of Fair Lawn Bd. of Adj., 
152 N.J. 309, 327

(1988)).   A court must not substitute its own judgment for that

of the board unless there is a clear abuse of that discretion.

Cell S. of N.J., supra, 
172 N.J. at 81-82.           The burden is on the

challenging party to show that the board's decision was

arbitrary, capricious, or unreasonable.        Id. at 81; Smart SMR of

N.Y., supra, 
152 N.J. at 327.       Further, "the Board 'has the

choice of accepting or rejecting the testimony of witnesses.

Where reasonably made, such choice is conclusive on appeal.'"

Kramer v. Bd. of Adjust., 
45 N.J. 268, 288 (1965) (quoting

Reinauer Realty Corp. v. Nucera, 
59 N.J. Super. 189, 201 (App.

Div.) certif. denied 
32 N.J. 347 (1960)).

    Less   deference   is   given   to   a   grant   of   a   use   variance.

Saddle Brook Realty, LLC v. Twp. of Saddle Brook Zoning Bd. of

Adj., 
388 N.J. Super. 67, 75 (App. Div. 2006). "'[V]ariances to




                                    12                               A-2283-13T1
allow new nonconforming uses should be granted only sparingly

and with great caution since they tend to impair sound zoning.'"

Ibid. (quoting Burbridge v. Twp. of Mine Hill, 
177 N.J. 376, 385

(1990)).   To uphold a use variance, a reviewing court must find

both that the board's decision meets the statutory criteria and

is supported by adequate evidence.     Ibid.

    However, "[i]f a proposed use qualifies as an 'inherently

beneficial' use, the burden of proof of an applicant for a use

variance is 'significantly lessened' with respect to both the

positive and negative criteria."      Salt & Light Co., Inc. v.

Willingboro Twp. Zoning Bd. Of Adj., 
423 N.J. Super. 282, 287

(App. Div. 2011), certif. denied. 
210 N.J. 108 (2012) (citing

Smart SMR of N.Y., supra, 
152 N.J. at 323).      An inherently

beneficial use is presumed to satisfy the positive criteria, and

it does not have to satisfy an "enhanced quality of proof" for

the negative criteria, as set forth in Medici v. BPR Co., 
107 N.J. 1, 21-24 (1987).   Ibid.   (citing Smart SMR of N.Y., supra,


152 N.J. at 323).   An inherently beneficial use is defined in


N.J.S.A. 40:55D-4 as a use that is

           universally considered of value to the
           community because it fundamentally serves
           the public good and promotes the general
           welfare. Such a use includes, but is not
           limited to, a hospital, school, child care
           center, group home, or a wind, solar or
           photovoltaic energy facility or structure.




                                 13                          A-2283-13T1
    But even if a use is found to be inherently beneficial, the

board must still balance the benefits and burdens of the

requested variance and use the following steps as a guide: (1)

identify the public interest at stake; (2) identify the

"detrimental effect that will ensue from the grant of the

variance;" (3) consider whether the detrimental effect can be

reduced by imposing reasonable conditions on the use; and (4)

"weigh the positive and negative criteria and determine whether,

on balance, the grant of the variance would cause a substantial

detriment to the public good."    Sica v. Bd. of Adj. of Wall, 
127 N.J. 152, 165-66 (1992); Bd. of Educ. of Clifton v. Zoning Bd.

of Adj. of Clifton, 
409 N.J. Super. 389, 441-42 (App. Div. 2009)

(quoting Sica, 
127 N.J. at 165-66).    In addition, 
N.J.S.A.

40:55D-70 requires that an applicant must show that the variance

will not substantially impair the intent and the purpose of the

zone plan and zoning ordinance.

    Here, we initially note that there was ample evidence to

support the Board's conclusion that the proposed use is not a

nursing home or a long term care facility.   Health intends to

provide rehabilitation services to patients whose admission will

not last longer than two to three weeks.   Second, we have no

quarrel with the Board's finding that the proposed use is

inherently beneficial – a conclusion shared by Regency's own




                                  14                        A-2283-13T1
professional planner.   There is no question this use is of a

kind that is considered to be of value to the community because

it fundamentally serves the public good and promotes the general

welfare.   See 
N.J.S.A. 40:55D-4.    Similar to a hospital, Health

seeks to provide care and treatment to patients, and it is not

disputed this facility will be regulated by the New Jersey

Department of Health.   See 
N.J.S.A. 26:2H-1.

    Further, based upon the proofs submitted there is support

for the Board's finding that the use variance would not cause a

substantial detriment to the public good or substantially impair

the intent and purpose of the zone plan.    The one detriment

identified during the use variance hearing – that there will be

an increase in traffic – can hardly be characterized as

substantial when the traffic will be less than that caused by a

permitted use.   Even if the application had not been bifurcated

and the evidence concerning the floor area ratio admitted during

the second hearing had been considered during the first hearing,

it is clear from the Board's findings in the second resolution

that the use variance would have been granted.

    We infer from its findings in the second resolution that

the Board credited the testimony of Health's witnesses.    In that

resolution, the Board noted that any detriment attributable to

the proposed floor area ratio is not outweighed by the benefits




                                15                          A-2283-13T1
that would be realized from permitting the proposed use.

Specifically, it found that the proposed use would be "less

intense" than a permitted one and that the floor area ratio will

be reduced by placing part of the parking garage underground.

The Board also noted that the new structure would result in less

run off and would preserve the natural slopes.   Its conclusion

that the bulk variances and site plan approval would not

"negatively impact the public good, the zone plan nor the zone

scheme of the area" are supported by the proofs submitted.

    After carefully considering the record and the briefs, we

conclude Regency's remaining arguments are without sufficient

merit to warrant discussion in a written opinion.   R. 2:11-

3(e)(1)(E).

    Affirmed.




                               16                          A-2283-13T1


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