Appeals Panel Agrees City Held Closed Meetings in Violation of the Sunshine Law - Asbury Radio Wins the Argument if not the Suit Itself. Asbury Radio told the council last night, Nov. 14: The Appellate Division has handed down a decision in Asbury Radio's suit against the City of Asbury Park, which basically agrees with our statements that executive sessions of this council were held in violation of the Open Public Meetings Act.

Even though the appeals panel ruled for the defendant, the city, they only did so because the items discussed in private session were said to have been cured by being eventually brought before the public.

Specifically, On Aug. 4th, the panel said, "That session was improperly conducted in private..."
And I read from the decision, "With respect to the meeting of July 15, 2004, the trial judge states that the council engaged in contract negotiations with Asbury Partners in Executive Session in accordance with NJSA 10:4-12b (7)." The panel says to that, "We do not agree (with the judge) that the statutory exception covers contract negotiations with the opposing party."

Again, the City was not held on these counts because the panel felt the items discussed in private session were cured by being eventually brought before the public. But the people of Asbury Park should not feel good about this. As my attorney, Jules Rossi, said, the public should have been there during the gestation process of the decisions of this council -- They should not have learned about the decisions after they were a fait accompli!!

I would hope that because of this panel's rulings, in the future when I -- or any media -- or any member of the public raises this or other issues, we will have the respectful attention of this city government without having to resort to the judicial process.

My Sunshine Law lawsuit -Scroll down for the official document -

I filed a lawsuit against the City of Asbury Park for failure to comply with the state Open Public Meetings Act, or Sunshine Law. Two plaintiffs, downtown developers, joined my lawsuit. As examples I referenced executive sessions held by the Asbury Park City Council on July 15 and August 4, 2004.

As part of the filing process, the plaintiff has to state what penalty they’re asking the court to level if the case is won. Since the fine is only $200, the other option available under the Sunshine Law was to have actions stemming from that meeting voided. In this case one - but not all - of the actions stemming from those meetings resulted in an ordinance raising the tax abatement for the waterfront subsequent developers' buyers. So the suit reads that the main complaint is a violation of the Sunshine Law, and the recourse sought is reversal of the tax abatement vote.  By rights any action stemming from an illegally held executive session should be sent back and dealt with according to the law.

Prior to filing the lawsuit, I consulted with the McGimpsey & Cafferty law firm. This is the firm the NJ Press Association refers questions to regarding the Open Public Meetings Act. In this law firm's opinion, the meetings held on July 15 and Aug 4 violated the Sunshine Law in that they were held under the "Contract Negotiation" exemption.  This exemption allows a public body to prepare in private its strategy in negotiating a contract with another entity. As the firm explained to me, the body would not invite the other party to the contract (Asbury Partners) to its private meeting and leave the public out. 

JULES L. ROSSI ESQ.

208 MAIN STREET

ASBURY PARK, NJ 07712

Tel (732)774-5520

Fax (732)774-5870

Attorney for Plaintiffs

 

MAUREEN NEVIN, PATRICK SCHIAVINO AND PATRICK FASANO

Plaintiffs,

 

ASBURY PARK CITY COUNCIL, MAYOR KEVIN SANDERS, TERENCE J. REIDY AND ASBURY PARTNERS

Defendants,

SUPERIOR COURT OF NEW JERSEY

LAW DIVISION-MONMOUTH COUNTY

DOCKET NO.

Civil Action

 

COMPLAINT IN LIEU OF PREROGATIVE WRITS

Plaintiffs, Maureen Nevin, Patrick Schiavino and Patrick Fasano, by way of complaint say:

FIRST COUNT

1. Plaintiff Maureen Nevin is a resident of Asbury Park, New Jersey. Plaintiff Patrick Schiavino is also a resident of Asbury Park and is a developer of real estate in Asbury Park outside of the Waterfront Redevelopment Area. Patrick Fasano’s principal place of business is Asbury Park and he too is a real estate developer.

2. Defendants are the City Council of Asbury Park (the governing body, which includes the Mayor), City Manager Terence J. Reidy and Asbury Partners, the redevelopment entity designated by the City of Asbury Park to redevelop the Asbury Park waterfront.

3. On July 15, 2004, defendants conducted an executive meeting, i.e., a meeting closed to the public, at which meeting was discussed an amendment to the a June 2003 ordinance that set standards for a tax abatement agreement between the City and Asbury Partners covering the Waterfront Redevelopment Area. The non-public discussion of tax-abatement amendment constituted a violation of the Open Public Meeting Act, N.J.S.A.10:4-6, et seq. N.J.S.A. 10:4-11, the controlling statutory provision, reads as follows:

10:4-12. Meetings open to public; exceptions


7.  a.  Except as provided by subsection b. of this section all meetings of public bodies shall be open to the public at all times.  Nothing in this act shall be construed to limit the discretion of a public body to permit, prohibit or regulate the active participation of the public at any meeting, except that a municipal governing body shall be required to set aside a portion of every meeting of the municipal governing body, the length of the portion to be determined by the municipal governing body, for public comment on any governmental issue that a member of the public feels may be of concern to the residents of the municipality.

b.A public body may exclude the public only from that portion of a meeting at which the public body discusses:

(1)Any matter which, by express provision of Federal law or State statute or rule of court shall be rendered confidential or excluded from the provisions  of subsection a. of this section.

(2)Any matter in which the release of information would impair a right to receive funds from the Government of the United States.

(3)Any material the disclosure of which constitutes an unwarranted invasion of individual privacy such as any records, data, reports, recommendations, or other personal material of any educational, training, social service, medical, health, custodial, child protection, rehabilitation, legal defense, welfare, housing, relocation, insurance and similar program or institution operated by a public body pertaining to any specific individual admitted to or served by such institution or program, including but not limited to information relative to the individual's personal and family circumstances, and any material pertaining to admission, discharge, treatment, progress or condition of any individual, unless the individual concerned (or, in the case of a minor or incompetent, his guardian) shall request in writing that the same be disclosed publicly.

(4)Any collective bargaining agreement, or the terms and conditions which are proposed for inclusion in any collective bargaining agreement, including the negotiation of the terms and conditions thereof with employees or representatives of employees of the public body.

(5)Any matter involving the purchase, lease or acquisition of real property  with public funds, the setting of banking rates or investment of public funds, where it could adversely affect the public interest if discussion of such matters were disclosed.

(6)Any tactics and techniques utilized in protecting the safety and property of the public, provided that their disclosure could impair such protection.  Any investigations of violations or possible violations of the law.

(7)Any pending or anticipated litigation or contract negotiation other than  in subsection b. (4) herein in which the public body is, or may become a party.

Any matters falling within the attorney-client privilege, to the extent that confidentiality is required in order for the attorney to exercise his ethical duties as a lawyer.

(8)Any matter involving the employment, appointment, termination of employment, terms and conditions of employment, evaluation of the performance of, promotion or disciplining of any specific prospective public officer or employee or current public officer or employee employed or appointed by the public body, unless all the individual employees or appointees whose rights could be adversely affected request in writing that such matter or matters be discussed at a public meeting.

(9)Any deliberations of a public body occurring after a public hearing that may result in the imposition of a specific civil penalty upon the responding party or the suspension or loss of a license or permit belonging to the responding party as a result of an act or omission for which the responding party bears responsibility.

 

4. On August 4, 2004, the defendant City Council passed Ordinance 2700, entitled "Ordinance to Adopt a Revised Standard Form of Tax Abatement Agreement for Properties within the Asbury Park Prime Redevelopment Area". See Exhibit A. This ordinance amended the original June 2003 ordinance.

5. The passage of this ordinance violated the provisions of N.J.S.A. 10:4-6 in that, inter alia, the amendment was discussed clandestinely in the executive session held on July 15, 2004 and in that the subject matter did not fall with any of the statutory exceptions. The closed meeting wherein one of the most vital of all economic issues (taxes) was being discussed secretly smacks of star-chamber tactics and undermines our democratic principles.

6. N.J.S.A. 10:4-5 reads as follows:

10:4-15. Proceeding in lieu of prerogative writ to void action at nonconforming meeting; parties; limitation; corrective or remedial action


    a.  Any action taken by a public body at a meeting which does not conform with the provisions of this act shall be voidable in a proceeding in lieu of prerogative writ in the Superior Court, which proceeding may be brought by any person within 45 days after the action sought to be voided has been made public;  provided, however, that a public body may take corrective or remedial action by acting de novo at a public meeting held in conformity with this act and other applicable law regarding any action which may otherwise be voidable pursuant to this section;  and provided further that any action for which advance published notice of at least 48 hours is provided as required by law shall not be voidable solely for failure to conform with any notice required in this act.

    b. Any party, including any member of the public, may institute a proceeding in lieu of prerogative writ in the Superior Court to challenge any action taken by a public body on the grounds that such action is void for the reasons stated in subsection a. of this section, and if the court shall find that the action was taken at a meeting which does not conform to the provisions of this act, the court shall declare such action void.

7. As a direct and proximate result of the violation of the N.J.S.A. 10:4-12, Ordinance 2700 is void.

Wherefore, plaintiffs demand judgment determining that Ordinance 2700 is void.

 

SECOND COUNT

1. Plaintiffs repeat and incorporate the allegations of the previous count.

2. N.J.S.A. 40:49-2 reads as follows:

40:49-2.  Procedure for passage; "governing body" defined
40:49-2.  Except as otherwise provided in R.S.40:49-6 and 40:49-12, the procedure for the passage of ordinances shall be as follows:

a.  Every ordinance after being introduced and having passed a first reading, which first reading may be by title, shall be published in its entirety or by title or by title and summary at least once in a newspaper published and circulated in the municipality, if there be one, and if not, in a newspaper printed in the county and circulating in the municipality, together with a notice of the introduction thereof, the time and place when and where it will be further considered for final passage, a clear and concise statement prepared by the clerk of the governing body setting forth the purpose of the ordinance, and the time and place when and where a copy of the ordinance can be obtained without cost by any member of the general public who wants a copy of the ordinance.  If there be only one such publication the same shall be at least one week prior to the time fixed for further consideration for final passage. If there be more than one publication, the first shall be at least one week prior to the time fixed for further consideration for final passage.

b. At the time and place so stated in such publication, or at any time and place to which the meeting for the further consideration of the ordinance shall from time to time be adjourned, all persons interested shall be given an opportunity to be heard concerning the ordinance.  The opportunity to be heard shall include the right to ask pertinent questions concerning the ordinance by any resident of the municipality or any other person affected by the ordinance. Final passage thereof shall be at least 10 days after the first reading.

c. Upon the opening of the hearing, the ordinance shall be given a second reading, which reading may be by title, and thereafter, it may be passed with or without amendments, or rejected.  Prior to the said second reading, a copy of the ordinance shall be posted on the bulletin board or other place upon which public notices are customarily posted in the principal municipal building of the municipality, and copies of the ordinance shall be made available to members of the general public of the municipality who shall request such copies.  If any amendment be adopted, substantially altering the substance of the ordinance, the ordinance as so amended shall not be finally adopted until at least one week thereafter, and the ordinance as amended shall be read at a meeting of the governing body, which reading may be by title, and shall be published in its entirety or by title or by title and summary, together with a notice of the introduction, the time and place when and where a copy of the amended ordinance can be obtained without any cost by any member of the general public who desires a copy, a clear and concise statement prepared by the clerk of the governing body setting forth the purpose of the ordinance, and the time and place when and where the amended ordinance will be further considered for final passage, at least two days prior to the time so fixed.  At the time and place so fixed, or at any other meeting to which the further consideration of the amended ordinance may be adjourned, the governing body may proceed to pass the ordinance, as amended, or again amend it in the same manner.

d.  Upon passage, every ordinance, or the title, or the title and a summary, together with a notice of the date of passage or approval, or both, shall be published at least once in a newspaper circulating in the municipality, if there be one, and if not, in a newspaper printed in the county and circulating in the municipality.  No other notice or procedure with respect to the introduction or passage of any ordinance shall be required.

 

3. The provisions of this statute were not satisfied by the City of Asbury Park in that, inter alia, there was no second reading of the ordinance. Moreover, the publication requirements were not satisfied. In particular, although no limitation is intended, the ostensible first reading (and this is an arguendo assumption) occurred on July 15, 2004. However, given the fact that the executive meeting violated the Sunshine Law, inasmuch as the tax-abatement amendment was discussed secretly, the first reading (if the first airing of the results of the discussion can be considered, arguendo, a first reading), must be considered a nullity. Simply, the first reading would be the tainted fruit from a forbidden tree.

Wherefore, plaintiffs demand judgment determining that Ordinance 2700 is void in that the requirements of N.J.S.A. 40:49.2 were violated.

 

THIRD COUNT

1. Plaintiffs repeat and incorporate all previous counts.

2. Defendant City constantly violates the Sunshine Law by considering public matters in closed or executive sessions that do not fit within the statutory exemptions. In addition to discussing the tax abatement at the July 15th executive meeting, there are many other actual violations. For example, plaintiff annexes as Exhibit B recent executive agenda showing that the City’s normal course of business is to consider public matters in secret session in violation of the Sunshine Law.

3. N.J.S.A. 10:4-16 empowers this court to grant injunctive relief to enforce the Sunshine Law.

4. Plaintiff seeks by this count to invoke the injunctive jurisdiction of this court to enforce the Sunshine Law and to award damages for its violation, all as provided by the statute.

Wherefore, plaintiffs demand injunctive relief enjoining further violations of the Sunshine Law, the issuance of such other orders as may be necessary to force the City to comply with the provisions of the Sunshine Law and entering judgment for monetary damages as provided by law.

 

FOURTH COUNT

1. Plaintiffs repeat and incorporate the previous counts.

2. N.J.S.A. 40A:21-15 reads as follows:

40A:21-15.     Ineligible properties for unpaid or delinquent taxes 
   15.    No exemption or abatement shall be granted, or tax agreement entered into, pursuant to this act with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due. 

3. Upon information and belief, Asbury Partners has not paid real estate taxes in connection with property covered by the proposed abatement, as set forth in Ordinance 2700. At the time the application for tax-abatement treatment was filed, real estate taxes were substantially in arrears on property Asbury Partners acquired from Ocean Mile, the original designated redeveloper--notably a parcel commonly known as "C-8". Also upon information and belief, Asbury Partners has not paid real estate taxes on substantial other portions of the Waterfront Redevelopment Area.

4. N.J.S.A. 40:21-15 was violated because the application for abatement was filed by Asbury Partners at a time when the property taxes were delinquent. Plaintiffs assert that Ordinance 2700 in form appears to be a method and formula to obtain tax abatement but is in substance the creation of the actual tax abatement.

5. This statute must be viewed as a jurisdictional statute, i.e., City Council did not have jurisdiction to entertain the abatement application because the jurisdictional predicate, namely paid-up-to-date taxes, was not satisfied.

Wherefore, plaintiffs demand judgment determining that Ordinance 2700 is void based on the violation of N.J.S.A. 40:21-5.

 

FIFTH COUNT

1. Plaintiffs repeat and incorporate the previous counts.

2. The area embraced by the tax-abatement agreement constitutes a substantial geographic area of the City of Asbury Park—approximately one mile of beachfront property.

3. Certain other areas of Asbury Park have also been designated as redevelopment areas, such as the downtown commercial district. Plaintiffs Schiavino and Fasano are developers in the non-waterfront redevelopment area.

4. The preferential tax-abatement treatment City Council has afforded to Asbury Partners and not to developers in other parts of the City violates fundamental fairness and Equal Protection of the Laws, as guaranteed by the 14th Amendment to the United States Constitution.

5. The favorable tax treatment given to Asbury Partners by the City unreasonably discriminates against non-waterfront developers.

Wherefore, plaintiffs demand judgment declaring Ordinance 2700 to be invalid on the basis that the City has unreasonably discriminated against all other developers by giving preferential treatment to Asbury Partners.

SIXTH COUNT

1. Plaintiffs repeat and incorporate the previous counts.

2. N.J.S.A. 40:49-2 (a) reads as follows:

40:49-2. Procedure for passage; "governing body" defined
40:49-2.  Except as otherwise provided in R.S.40:49-6 and 40:49-12, the procedure for the passage of ordinances shall be as follows:

a.  Every ordinance after being introduced and having passed a first reading, which first reading may be by title, shall be published in its entirety or by title or by title and summary at least once in a newspaper published and circulated in the municipality, if there be one, and if not, in a newspaper printed in the county and circulating in the municipality, together with a notice of the introduction thereof, the time and place when and where it will be further considered for final passage, a clear and concise statement prepared by the clerk of the governing body setting forth the purpose of the ordinance, and the time and place when and where a copy of the ordinance can be obtained without cost by any member of the general public who wants a copy of the ordinance.  If there be only one such publication the same shall be at least one week prior to the time fixed for further consideration for final passage. If there be more than one publication, the first shall be at least one week prior to the time fixed for further consideration for final passage. (Emphasis added).

3. N.J.S.A. 10:4-7 reads, in pertinent part, as follows:

The Legislature further declares it to be the public policy of this State to  insure that the aforesaid rights are implemented pursuant to the provisions of  this act so that no confusion, misconstructions or misinterpretations may  thwart the purposes hereof.   

4. Ordinance 2700 is a Rosetta Stone. It is one of the most difficult and complicated ordinances to understand ever passed by the City. It is also one of the most far-reaching. Not only are the property owners and residents of Asbury Park affected by the ordinance but also the ordinance reaches far beyond the borders of the City. For example, none of the tax revenue raised in the Waterfront Redevelopment Area will be allocated to schools. That means that all the rest of us will have to make up the difference. Given the complexity and extensive range of 2700, there was a special need to comply strictly with N.J.S.A. 40:49-2 (a). Due Process of Law, as guaranteed by the Fourteenth Amendment to the United States Constitution, the raison d’etre for this statute, requires far more clarity and precision—even if the statutory mandate requires concision. Given the complexity of the ordinance, Due Process dictates that the public should be accorded reasonable and sufficient time to analyze and understand the ordinance. Plaintiffs want to make it clear that Ordinance 2700 may or may not be fair and reasonable. However, the ordinance was virtually a fait accompli and crammed down the public’s throat when it was introduced. Essentially, the governing body abdicated its responsibility to govern to Asbury Partners. That much is clear by considering Councilperson Mellina’s reason for passing the ordinance: "If we don’t approve it, they won’t build".

5. Plaintiff asserts that the notice (Exhibit C) does not comport with the statute and due process of law. The notice is far less than adequate to satisfy due process standards.

6. Defendants deliberately created confusion in the public’s mind in a number of respects including, but not limited to the following:

There were two (2) different and inconsistent agendas for the July 15, 2004 meeting (See Exhibit D and E)

The public notices did not reveal the true purpose of the proposed amendment to the abatement agreement—to provide Asbury Partners an additional tax benefit.

Ordinance 2700 is so complicated that the Redevelopment attorney suggested that the matter be adjourned to give all interested parties the time and opportunity to comprehend the ordinance.

The public was told that the City Tax Assessor consented to the amendment. That was a gross misrepresentation and

The public was told that the attorney who drafted the original tax-abatement agreement was too ill to appear before Council to explain the reasons and need for the new ordinance. This turned out not to be true. This was deceiving the public.

7. The entire process involving the passage of Ordinance 2700 violates both the spirit and letter of the cited statutes as well as Due Process of Law.

Wherefore, plaintiffs demand judgment declaring the notice to be invalid and declaring Ordinance 2700 to be void.

 

SEVENTH COUNT

1. Plaintiffs repeat and incorporate the previous counts.

2. Ordinance 2700 constitutes arbitrary, unreasonable and capricious action by City Council. The ordinance is the result of an ultra vires conduct by City Council. In addition, and as aforesaid, the City had no jurisdiction to entertain the application for additional tax abatement because Asbury Partners was delinquent in its tax payments.

Wherefore, plaintiffs demand judgment declaring Ordinance 2700 invalid.

 

EIGHTH COUNT

1. Plaintiffs repeat and incorporate the previous counts.

2. Given the gross violations of the laws cited in this complaint, the defendants should be held accountable to pay plaintiffs’ legal fees and costs.

Wherefore, plaintiffs demand judgment against defendants jointly and severally for attorney fees and costs.

 

Date: 8.30.04 _______________________

Jules L. Rossi

 

 

CERTIFICATION REQUIRED BY R. 4:5-(b) (2)

I certify that the matter in controversy is not the subject of any other action pending in any court or pending arbitration proceeding and no such action or arbitration proceeding is contemplated. However, Patrick Schiavino and Patrick Fasano are parties to a law suit against these defendants, but the subject matter is different. I am not aware of any other party who should be joined in this action.

Date: 8.30.04 _____________________

Jules L. Rossi

 

DESIGNATION OF TRIAL COUNSEL

Jules L. Rossi is designated as trial counsel for plaintiffs pursuant to R. 4:5-(c).

Date: 8.30.04 _____________________

Jules L. Rossi