Borough of Saddle River v. 66 East Allendale, LLC

East Allendale, LLC owned a 2.13 acre parcel of land in the Borough of Saddle River. Part of the property was located in the office zone, which restricted improved lot coverage to 30 percent of the lot’s total area. In 2004, East Allendale submitted an application to the Borough’s Zoning Board of Adjustment (Board) for a permit to build a 10,000 square foot bank building and parking lot on the property. The site plan required approval of a bulk variance to allow 42 percent improved lot coverage. The Board initially denied the permit and East Allendale subsequently withdrew its application in the face of critical questioning prior to the Board’s final action. The Borough later filed a complaint exercising its power of eminent domain in order to acquire the subject property for use as a public park. After the parties agreed that the Borough duly exercised its power of eminent domain, the court appointed three commissioners to determine the just compensation owed to East Allendale. The commissioners completed their appraisals and the court entered an order determining the just compensation for the taking to be $1,593,625. The parties appealed the amount and demanded a jury trial. Just compensation was the sole trial issue. The issue on appeal before the Supreme Court in this matter was whether it was proper to allow the jury to hear evidence on the likelihood of a zoning change without the trial court first determining outside of the jury’s presence that there was a reasonable probability of a zoning change. The Court concluded the jury heard evidence about the probability of a zoning change that should have been ruled on by the judge in advance and outside of the jury’s presence. A new trial on just compensation was thus required because the jury heard speculative evidence that undermined the soundness of its property valuation determination.

Borough of Saddle River v. 66 East Allendale, LLC