Eastampton Center v. Township of Eastampton

155 F.Supp.2d 102

EASTAMPTON CENTER, LLC, Plaintiff, v. TOWNSHIP OF EASTAMPTON, in the County of Burlington, a Municipal Corporation of the State of New Jersey, the Township Council of Township of Eastampton, and the Planning Board of Township of Eastampton, Defendants, Daniel M. Tabas and Estate of Charles L. Tabas, a Pennsylvania Partnership trading as Tabas Brothers, Plaintiff, v. Township of Eastampton, in the County of Burlington, a Municipal Corporation of the State of New Jersey, the Township Council of Township of Eastampton, and the Planning Board of Township of Eastampton, Defendants.

No. CIV.A. 99-CV-1837-JAP.

No. CIV.A 99-CV-1838-JAP.

United States District Court, D. New Jersey.

July 9, 2001.

COPYRIGHT MATERIAL OMITTED

Thomas F. Carroll, III, Steven M. Eisdorfer, Hill Wallack, Princeton, NJ, for Plaintiffs, Eastampton Center, LLC, Daniel M. Tabas and Estate of Charles L. Tabas.

John E. Harrington, Law Offices of John E. Harrington, Medford, NJ, for Defendants Eastampton Township and the Township Council of Eastampton Township.

Kenneth S. Domzalski, Burlington, NJ, for the Planning Board of Eastampton Township.

OPINION

PISANO, District Judge:

I. Introduction

In April 1999, Eastampton Center, LLC ("ECLLC"), and Daniel M. Tabas and the Estate of Charles L. Tabas ("Tabas") (together, "Plaintiffs") commenced separate actions against the Township of Eastampton ("Eastampton" or "Township"), the Township Council of Eastampton ("Council"), and the Planning Board of Eastampton ("Planning Board") (together, "Defendants") alleging, inter alia, that Eastampton's comprehensive land use amendments to its Master Plan and implementing zoning ordinances ("challenged land use ordinances") discriminate on the basis of familial status in violation of the federal Fair Housing Act, 42 U.S.C. § 3604(a) (1994).

Eastampton is a small community located in Burlington County, New Jersey, which has approximately 6,000 residents. As a result of a comprehensive re-examination of Eastampton's Master Plan and development regulations, Defendants adopted the challenged land use ordinances, which rezoned and/or downzoned¹ properties located within Eastampton purportedly to provide for open space, to increase the commercial tax base and to control residential growth. Plaintiffs are developers/property owners, whose ability to construct residential developments on their properties was either eliminated or significantly curtailed as a result of the adoption of the challenged land use ordinances. Plaintiffs contend that the challenged land use ordinances violate the Fair Housing Act because their adoption was motivated by an intent to discriminate on the basis of familial status, and reduced the total number of housing units available for families with children in Eastampton. Defendants contend, inter alia, that the challenged land use ordinances, which reduce prospective housing construction, do not raise a cognizable claim under the Fair Housing Act, and do not discriminate on the basis of familial status.

The two actions filed by Plaintiffs were subsequently consolidated, and Plaintiffs now jointly move for a partial summary judgment pursuant to Federal Rule of Civil Procedure ("Fed.R.Civ.P.") 56 on count one of both complaints, which asserts a claim under the Fair Housing Act. Defendants oppose Plaintiffs' motion and cross-move for partial summary judgment on the Fair Housing Act claim. This case presents an issue of first impression in this Circuit as to whether a municipality may adopt land use ordinances, which reduce the allowable housing construction within the municipality, to provide for open space, to increase the commercial tax base, and to control residential growth without running afoul of the Fair Housing Act. The Court decides the motion without oral argument pursuant to Fed.R.Civ.P. 78. For the reasons stated below, the Court denies Plaintiffs' motion, and grants Defendants' motion for partial summary judgment on the Fair Housing Act claim.

II. FACTUAL BACKGROUND

A. The Parties

ECLLC is the owner of land located in Eastampton. (Plaintiffs' Statement of Undisputed Facts ("Pls.' Stat."), ¶ 1). ECLLC's property is designated as Block 600, Lots 2, 2.02, and 4 on the tax maps of Eastampton and consists of approximately 210 acres ("ECLLC Property").² (Pls.' Stat., ¶¶ 1, 6). Between 1986 and 1997, the ECLLC Property was primarily used as a farm. (Solondz Dep. at 9, attached to Defs.' Certif. as Ex. A). Prior to the adoption of the challenged land use ordinances, the ECLLC Property was located in the Town Center Zone district which allowed for mixed-use development, including residential, business, and quasipublic use. (Pls.' Stat., ¶¶ 6, 7). The residential use allowed for single-family and multi-family housing. "Family" is defined as "one or more persons related by blood, marriage, adoption or guardianship, or any number of persons not so related occupying a dwelling unit and living as a single housekeeping unit."³ (Ordinance 1999-03 at 14, attached to Pls.' Certif. as Ex. K).

Tabas owns undeveloped land in Eastampton, which is designated as Block 1000, Lot 6 on the tax maps and consists of approximately 40 acres ("Tabas Property"). (Pls.' Stat., ¶ 2). Prior to adoption of the land use amendments, the Tabas Property was located in the R-1 Zone district, which permitted the construction of two single-family dwellings per an acre. (Pls.' Stat., ¶ 9).

Eastampton is a municipal corporation organized and existing under the laws of the State of New Jersey. (Pls.' Stat., ¶ 3). The Council is the governing body of Eastampton, and is responsible for enacting land use ordinances, including those challenged in this action. (Pls.' Stat., ¶ 4). The Planning Board was created by the Council pursuant to the New Jersey Municipal Land Use Law, N.J.S.A. 40:55D-23 et seq., and is responsible for adopting the comprehensive amendments to the Township's Master Plan. (Pls.' Stat., ¶ 5).

B. Eastampton's Referendum on Open Space

Beginning in 1997, residents of Eastampton expressed their concern about preserving open space. The Council received two petitions, consisting of more than 400 signatures, requesting that the Council (i) deny a development group's request for a zoning variance with respect to "DAC and Axelrad properties" to preserve open space, and (ii) preserve the Tabas Property in its undeveloped state. (Certif. of Richard V. Renzulli ("Renzulli Certif."), ¶ 2, attached to Defs.' Certif. as Ex. F).

In March 1998, Eastampton conducted a survey proposing the establishment of a Municipal Open Space and Farmland Preservation Program (the "Program") to enable Eastampton to participate in such preservation projects in partnership with the County of Burlington and the State of New Jersey. The survey stated that the principle aim of the Program "is to preserve properties which are the subject of possible residential development." (March 1998 Survey Materials attached to Pls.' Certif. as Ex. D). Examples of possible target areas for preservation included the properties specifically identified in the petitions, the DAC property, the Axelrad property, and the Tabas Property. The Tabas Property was described in the survey as "environmentally sensitive land," containing "wetlands and sensitive wildlife." (Id.).

The survey enumerated the benefits of the Program as: (i) preserving environmentally sensitive areas; (ii) avoiding the adverse fiscal impact of residential development on future tax rates; and (iii) maintaining the rural character of the community. (Id.). It proposed a three cent open space municipal tax, the proceeds of which would be used to purchase land that was slated for residential development. (Pls.' Stat., ¶ 10). Approximately eighty-four percent of the responding citizens approved of the open space municipal tax. (Renzulli Certif., ¶ 4).

In response to the results of the survey, the Council proposed Ordinances 1998-07 and 1998-08 in April 1998, which sought to curtail residential growth in the Town Center Zone and R-1A Zone districts. (Defs.' Stat., ¶ 12). The "Declaration" section of the proposed ordinances identified (i) the residents' desire for the preservation of open space, and (ii) the school system's inability to absorb a potential increase of "school age children," as reasons for decreasing the residential density of Town Center Zone and R-1A Zone districts. (Proposed Ordinances 1998-07 and 1998-08 attached to Pls.' Certif. as Exs. E & F). Ultimately, the proposed ordinances were withdrawn because the Council recognized that Eastampton's Master Plan had to be amended prior to adopting such downzoning ordinances. (Pls.' Stat., ¶ 16).

In June 1998, the Council sent a letter to its registered voters, asking for their support of the Program in the November 1998 general election ("June 1988 Letter"). (June 1998 Letter attached to Renzulli Certif. as Ex. A). The June 1998 Letter stated that the results of the March 1998 survey "indicate that Eastampton residents recognize the benefits of open space: preservation of our Community's environmental assets while precluding additional fiscal strain on local government in the form of higher school and other public services costs." (Id.).

The residents of Eastampton reaffirmed their commitment to an open space municipal tax in the general election, passing the referendum by a margin of seventy-six percent in favor to twenty-four percent against. (Tr. of November 30, 1998 Planning Board Meeting ("November 1998 Tr.") at 28, attached to Defs.' Certif. as Ex. L).

C. Master Plan Amendment

Pursuant to New Jersey Municipal Land Use Law, N.J.S.A. 40:55D-89, the Council and the Planning Board undertook a comprehensive Re-examination of Eastampton's Master Plan and development regulations. (Planning Board Resolution 1999-03 ("Resolution 1999-03") at 1, attached to Defs.' Certif. as Ex. J). The "public sentiment" for open space was identified by the Planning Board as the ...