JUSTICE LaVECCHIA delivered the opinion of the Court.
This appeal raises substantive and procedural issues about the immunity from local zoning laws and regulation that
Case law recognizes that a state higher educational institution like MSU, statutorily vested with control over its property,
In this matter, Montclair State University (MSU) commenced an action in the Law Division of the Superior Court, invoking
The trial court declined the requested relief and dismissed the action; the court told MSU either to appear before the local planning board to establish a record on the public safety concerns expressed by the local governmental authorities or to appeal. MSU appealed and the Appellate Division reversed the dismissal of the action and remanded for further proceedings before the trial court.
We granted the City's petition for certification, seeking correction of the Appellate Division's interpretive guidance on
We now reaffirm principles expressed in the
First, we clarify and hold that under the qualified immunity addressed in Rutgers a state agency must be able to demonstrate both that the planned action is reasonable and that the agency reasonably consulted with local authorities and took into consideration legitimate local concerns. Meaningful consultation with appropriate local public authority is a necessary part, but consultation alone does not suffice to conclusively address the essential question about the reasonableness of the planned action.
Second, we hold that when the otherwise immune state agency's improvement directly affects off-site property and implicates a safety concern raised by a local governmental entity responsible to protect public safety with respect to that off-site property, special judicial review and action is required. We continue to recognize that the state entity may not be compelled to submit to review before a planning board. However, in circumstances such as are presented here, a judicial finding that the cited public safety concern has been reasonably addressed through the planning for the state agency's improvement shall be a necessary additional requirement before a court may either compel local regulatory action or grant declaratory relief that the planned action is exempt from land use regulation.
We do not intend to specify what record warrants such a finding in every case. Rather, the trial court should determine, on a case-by-case basis, whether it could make such a finding via a summary proceeding or whether a more fulsome proceeding is necessary.
Since 2004, MSU has attempted to create a third egress from its Passaic County campus onto Valley Road, also known as Passaic County Road 621. MSU wants
MSU consulted with both the County and the City about the project for almost six years. During that extended process, MSU submitted construction plans for review, retained experts to study traffic and safety concerns, and, ultimately, agreed to change portions of its plan to address concerns raised by both the County and the City. After conferring with both entities over several years, MSU was able to satisfy most concerns about the project.
On April 7, 2014, MSU submitted permit applications to the County Engineer for the new egress. The first permit application was for a "right-of-way access permit/curb cut permit," that would allow MSU to relocate the access driveway to a new location, and to install 320 feet of "full height (raised) curbing." The permit application indicates that the purpose of the work was to construct a new driveway and add a traffic signal, and that the work would be located on Valley Road. A second permit application, asking for a storm drain connection, requested that the County allow MSU to connect a storm drain into the County's existing system at Valley Road. Finally, consistent with an alternative plan for the access driveway, MSU submitted another application also for a "right-of-way access permit/curb cut permit," allowing the University to relocate the access driveway to a new location and to install 130 feet of "full height (raised) curbing" alongside the county road.
With respect to all of the permits, MSU asked for issuance of approval either with or without the installation of a traffic light to control the traffic on Valley Road as well as the entry and exit of traffic flowing between Valley Road and Yogi Berra Drive. The MSU Board of Trustees also adopted a resolution committing to assume the cost and maintenance of a traffic signal, if one were permitted.
In its cover letter to the County Engineer that accompanied the permit applications, MSU recounted the extended history of discussion, public comment, and negotiation with local officials about the project, as well as the changes that had been made to its plans as a result of those consultations. MSU sought a statement that its application was now complete, asserting that the University was exempt, under Rutgers, from seeking approval for the project from the City's land use boards.
When the County failed to respond to MSU's permit applications, MSU filed this action against the County on July 29, 2014, seeking a judgment declaring that no permit or other local approval was required, or alternatively, an order compelling the County to issue all necessary permits. The court permitted the City to intervene.
On the return date of an order to show cause, the trial court denied MSU the relief sought. The court addressed the scope of the County's authority over the proposed construction on state land. Relying on Rutgers, the court reasoned that the parties must exchange updated traffic studies, consult further, and appear before the local planning boards. The court retained jurisdiction in the event the parties could not reach a resolution.
The parties met and conferred. Although MSU agreed to make more changes to its plans, the impasse over issuance of the permits remained.
The principal point of contention was the design speed of the campus roadway, which the County and City claimed was
MSU asked the trial court to relist the matter for issuance of a decision. Over the City's objection based on MSU's failure to appear before City planning boards, the court heard the matter again on February 25, 2016. MSU argued that (1) it had met all requirements under Rutgers; (2) its revised plans resolved the County's and City's safety concerns; and (3) the only area on which the parties could not agree — the design of the roadway — concerned a project located entirely on MSU's property and over which MSU had sole jurisdiction. The County and City argued that there were still safety issues due to the roadway design and the ability of cars descending Yogi Berra Drive at the intersection with the county road to maintain control; that said, the County acknowledged that MSU had made the project "safer" and had "accommodated" most of the County Planning Board's comments.
The trial court dismissed MSU's complaint for declaratory and injunctive relief because MSU had not returned to the local planning boards, as had previously been ordered, to develop the record further. The trial court advised MSU that its options were either to appeal or "set something up so there can be a record" concerning the roadway plans and MSU's accommodations of the recommendations made by the County and the City.
MSU appealed and argued that it was an abuse of discretion by the trial court to dismiss the complaint "without determining whether MSU met its obligation under Rutgers to act reasonably and consult with the county and city," and by mandating "that MSU return to Clifton's planning board for approval for any reason, including, for the development of a record."
The panel reversed and remanded "for reinstatement of plaintiff's complaint and a trial, if necessary, for the judge to determine whether MSU satisfied its obligation under Rutgers."
The panel explained, first, that a "difference of opinion as to the best method to address a local traffic safety concern alone... does not support a finding that the state university acted unreasonably."
We granted the City's petition for certification. 231 N.J. 330, 175 A.3d 174 (2017).
The City argues that, as a general matter, state agencies enjoy an immunity from local control but not an absolute immunity. It asserts that Rutgers set forth a multi-part test for a trial court's use in disputes involving a state entity's assertion of immunity from local land use and regulatory controls. According to the City, that test is as follows: when a local governmental entity (1) raises an important local interest, a court is required to assess (2) whether the state agency invoking immunity is acting in an "unreasonable fashion so as to arbitrarily override all important legitimate local interests," (quoting
The City argues that the Appellate Division ignored the prong that addresses the reasonableness of the action by focusing solely on the act of consultation with local agencies and not considering reasonableness as a distinct query related to the proposed project and its effect. According to the City, the Appellate Division decision allows a state agency to move ahead with a project so long as the agency is satisfied with the reasonableness of its own proposal, without regard to a dispute between state and local entities as to the project's safety. The decision thereby grants the agency unfettered ability to implement an unreasonable project, according to the City. Moreover, the City maintains that the panel's approach forecloses judicial review of the state agency's reasonableness decision.
The County generally supports the City's position. It distinguishes Rutgers from this case on the basis of the County's governmental powers. It also asserts that the safety concerns raised here are "different than the zoning regulations raised" in Rutgers, limiting its applicability. The County posits that the design speed for the downhill travel on the roadway at issue, coupled with the "somewhat sharp turn at the bottom of the roadway at
MSU argues that the Appellate Division correctly applied Rutgers when the panel remanded the case to the trial court. MSU suggests that the City misreads the Appellate Division's decision, which "expressly reject[ed] the notion that a state university can comply with the law without giving real consideration to local concerns."
MSU asserts that in this matter there is substantial evidence that it listened to the City and the County and substantively addressed each issue, making significant changes to its plans to accommodate most local concerns. It only declined to redesign Yogi Berra Drive after its experts concluded that the original design was safe and that the proposed alternative could create an unsafe situation. Thus, MSU says it fully complied with Rutgers, as evidenced by its meaningful consultations with the City and County and its willingness to make reasonable adjustments for safety concerns, despite a difference of opinion between the parties.
Two amici support MSU in this matter.
The Attorney General asks this Court to hold, consistent with Rutgers, that the trial court must "balance State sovereignty with important legitimate local interests by employing deferential consideration of whether [MSU] reasonably consulted" with the City and the County. As long as the State "hears local concerns and reasonably exercises its immunity in light of those concerns," the Attorney General asserts that, consistent with Rutgers, state sovereign immunity "permits a State project to go forward, even if local objection persists."
The Attorney General notes that state entities routinely undertake projects that could touch on significant local issues. The Attorney General argues that the State must have immunity from local ordinances because "a shift in this well-established balance" would undermine sovereign immunity and allow local entities to stall State projects with "years of objections," effectively "giv[ing] the local entity an unfettered veto power over the State project."
Rutgers argues that although the Appellate Division correctly understood the Rutgers standard, the panel erred in remanding the case for further proceedings in the trial court. State institutions, according to Rutgers, must retain autonomy to improve facilities consistent with the best interest of their stakeholders, including the public, so long as the institutions provide appropriate attention to communicated local concerns and land use requirements. Rutgers submits that the
In the 1972 Rutgers case, relied on by all parties to this action, this Court considered the autonomy that a state university has from local land use regulation. In broaching the immunity question in the setting of the then-only state university, with the added unique status of Rutgers due to its institutional history, this Court noted that determining which governmental entities "are immune from municipal land use regulations, and to what extent, is not ... properly susceptible of [an] absolute or ritualistic answer." 60 N.J. at 150, 286 A.2d 697.
The issue of immunity from municipal land use controls had arisen before for various types of governmental entities including state authorities, a county entity, and in an instance of an inter-municipality conflict. Canvassing its prior case law where immunity from local land use control was at issue,
Prior to
In
In
Finding that the Legislature had the clear power to "immunize its public Authorities from the provisions of local zoning and building restrictions," the Court turned its attention to whether the building of service areas was similarly exempt from local zoning and building requirements.
The Court took into account that there were "widespread objections by local communities and residents ... to the encroachments of new highways and their untoward incidents."
As those two cases reflect, when the issue of land use controls arose in the setting of a state institution of higher education in Rutgers, this Court had highly relevant precedent concerning challenges by local governmental entities to state construction
In
Piscataway denied Rutgers building permits to construct units in excess of the capped number.
At the outset of its analysis, our Court acknowledged some general "black letter law" according to which,
However, the Court in Rutgers rejected a "presumption of immunity" based exclusively on the superiority one governmental entity may have over another in hierarchy,
The Court emphasized the need for a case-by-case approach.
In the application of its test, the Court determined that Rutgers, as a state university and instrumentality of the State, is entitled to a qualified immunity.
As applied to the facts in Rutgers, the Court concluded that it "fail[ed] to see the slightest vestige of unreasonableness [in the University's planned action] as far as Piscataway's local interests are concerned or in any other respect."
Thus, Rutgers identified a number of principles that would govern whether an entity is entitled to claim immunity from local land use regulation. The Court counseled consideration of "the nature and scope of the instrumentality seeking immunity, the kind of function or land use involved, the extent of the public interest to be served thereby, the effect local land use regulation would have upon the enterprise concerned[,] and the impact upon legitimate local interests."
With respect to the specific project for which immunity is sought, Rutgers requires a two-fold analysis. First, the substantive action planned by the entity claiming immunity from local land use control must itself be reasonable.
Turning to the case before us, at the outset, we note that MSU is an entity that clearly, in planning its alteration to its campus roads in order to better serve its intra-campus traffic, was acting in an immune capacity, pursuant to its statutory authorization to control its property. Like Rutgers, MSU is a state university, and N.J.S.A. 18A:64-7 grants the Board of Trustees of MSU with
Similar language in the statute governing Rutgers was recognized in the
MSU, as an agency of the State, acts for the State generally when, in furtherance of its overall statutory educational mission, it determines to improve its campus roads (specifically here, Yogi Berra Drive) to better manage intra-campus traffic concerns for its students, faculty, employees, and guests. The function involved fits squarely within its statutory mission and its specific authority. Moreover, the public interest to be served supports that the Legislature intended for MSU to be free of local land use regulation in managing its internal road system so long as there is no asserted impact on non-state-owned public property. For such actions, MSU needs autonomy to act in the way that best serves its enterprise and its stakeholders, rather than to have to seek local land use entanglement, nay approval.
In sum, MSU is a state entity that enjoys the qualified immunity from local land use controls with respect to management of its own land and property that was recognized in Rutgers. We thus turn to review of the exercise of that immunity.
In this matter, we are in substantial agreement with the judgment of the Appellate Division remanding this matter to the trial court for further proceedings. However, we modify the instruction given to the trial court on the required Rutgers analysis and, generally, how the judicial proceedings should be conducted.
Here the Appellate Division's decision can be interpreted to have inadvertently conflated the two parts of the Rutgers analysis into one. For clarification's sake, we reaffirm the two parts to the analysis that must be applied on remand.
In order for the trial court to grant MSU the relief it seeks, the court first must assess the inherent reasonableness
Separately, the trial court must also assess whether MSU reasonably consulted and took into consideration the legitimate concerns of the local governmental entities. As noted previously, consultation and consideration of important local concerns is necessary but it does not answer the distinct first question about the reasonableness of the project itself.
We expect that any legislatively authorized State action should be able to satisfy, minimally, an examination for reasonableness to be a proper exercise of governmental action. Moreover, it is compatible with the expectation that coordination and cooperation between and among governmental agencies, even when differentiated by hierarchy, is in the public's best interest generally.
Public safety concerns require pause because they merit careful consideration. The local governmental entities here cite public safety concerns and voice apprehension about their ability to fulfill their own duty of care to members of the public, traveling on or along the county road, who may never have occasion to enter upon MSU property but who may be negatively affected by MSU's plan design and its effect on the intersection with the county road. How and where those concerns factor into the Rutgers analysis is a novel issue with respect to our law on the qualified immunity recognized in this area.
We recognize as significant the public interest inherent in a local government entity's reasonable concerns about the impact of an immune state entity's internal actions affecting public safety on non-state public property. In this instance, the public safety concerns were raised in connection with questioning the adequacy of the planning for the proposed roadway alterations and their impact on- and off-site of MSU property.
The safety issue focuses on drivers descending the incline of Yogi Berra Drive (presently solely an ingress with traffic moving only up the incline), with its planned curve and speed limit, and members of the public traversing the intersecting county road who would be affected by the descending drivers approaching the intersection. The local governmental entities have raised, facially, an important and legitimate planning concern about public safety. It is unlike the anticipated future impact on a community like the issue raised in the case concerning construction of service areas along the Parkway, where municipal authorities expressed concerns about speculative untoward incidents arising from motorists stopping at a rest area located within the community's borders.
Regarding persons traveling the interior of the campus, MSU bears responsibility for its roads under its statutory authority. However, there is a distinct duty owed by other local governmental entities when a public safety concern could affect local public property and the members of the public using that property. In such situations, we are compelled to add an additional inquiry to the test articulated in Rutgers.
Simply put, a review by MSU and its experts asserting that it has reasonably addressed the public safety concern is not sufficient, standing alone, to protect general public safety and also the interests of the local governmental entities with regard to that local public safety concern. MSU is not legislatively authorized to act on issues of public safety on county roads as part of its delegated tasks.
Subject to the limitations contained in the Tort Claims Act, local governments owe a duty of care to the public regarding their roadways and ancillary public lands.
In the circumstances presented here, where a facially legitimate public safety concern is raised about an immune entity's planned improvement to lands, which would have a direct impact on non-state-owned property, we will require a showing by the immune entity that its planning has reasonably addressed the public safety concern. The local governments can argue otherwise regarding the improvement's impact on off-site public property and whether public safety concerns have been reasonably addressed, but the court will make the ultimate determination. We will require a discrete judicial finding that MSU's proposed action reasonably satisfies public safety concerns. Such a finding comes in addition to the otherwise typical review of an immune entity's modification to its own property. A judicial finding is necessary to properly protect the general public and to fairly
We do not suggest that protracted trial proceedings are necessary whenever a public safety claim is advanced as a reason for questioning immunity from local land use regulations. In the instant remand, we leave to the sound discretion of the trial court whether this matter may proceed along the lines of a summary proceeding or whether the taking of live testimony or receipt of other evidence is necessary.
Accordingly, on the remand of this matter, we add that in circumstances such as these, a judicial finding shall be required on the reasonableness of the planned MSU project, specifically as it affects public safety regarding the intersection with the county road.
The judgment of the Appellate Division is affirmed as modified by this opinion.
CHIEF JUSTICE RABNER and JUSTICES PATTERSON, FERNANDEZ-VINA, SOLOMON, and TIMPONE join in JUSTICE LaVECCHIA's opinion. JUSTICE ALBIN did not participate.
Rutgers maintains that, in the setting of appellate review of state agency action, the applicable standard reviews only for arbitrary and capricious action. Rutgers urges us to hold that land use disputes involving challenges to claims of immunity under Rutgers should generally follow the typical appellate path for judicial review of state agency action.