"From Ink to Occupancy" Real Estate Program at Gibbons P.C. Armed Attendees with Fundamentals & Information on the Latest Trends

“From Ink to Occupancy, A Game Plan for a Successful Real Estate Project,” the latest installation of the Gibbons Women’s Initiative Seminar Series, was held earlier last week and attracted a great crowd, including real estate professionals and in-house counsel. Nancy A. Lottinville, Jennifer M. Porter and Ivette P. Alvarado guided attendees through the nuts and bolts of a commercial real estate contract, due diligence and the land use approvals process, with a focus on New Jersey and New York. A portion of the program was also dedicated to the current “Hot Topics” of real estate in New Jersey and New York, including FEMA’s Advisory Base Flood Elevations and cross-access easement issues. Thanks to various requests from attendees for more information, the RPE Law Alert will be posting blogs over the course of the next few weeks expanding on the topics covered during the program. Watch for the next installation: “Properly Identifying the Property in the Contract: Are You Sure You Know What You’re Getting?”


*Photo courtesy of Alphaspirit, Dreamstine.

The New Philadelphia Zoning Code - Take Notice

The revised Philadelphia Zoning Code will be effective before your Labor Day barbeque is over, and there is a smorgasbord of changes to digest. For instance, let’s take “notice,” a contentious issue the new Code seeks to resolve with procedural safeguards and requirements.

A frequent area of conflict under the current (soon to be former) Code centered on interactions between developers and neighbors during the zoning/use approval process. Many times, a developer would complain that it did not know which neighborhood civic association represented a particular area, or that a civic association’s meeting schedule resulted in delays in the zoning hearing and approval process. Conversely, neighbors would charge that they were not given adequate notice of applications filed or permits issued with enough lead time to have meaningful input into the process. The revised Code seeks to balance the property owner/developer’s interest in certainty, both in terms of time required to complete the application process and identification of potentially interested parties, against the neighbors’ need for notice of the application and an opportunity to participate.

Under the revised Code, a civic association which desires to receive notices of applications and hearings will have to register annually with the City of Philadelphia Planning Commission as a Registered Community Organization, or RCO. In that registration, the RCO must, among other things, identify a contact person, specify its geographic boundaries, and advise whether it wants to be provided with notices by mail or electronically. An RCO can either be a Local Registered Community Organization, which has a geographic concern relating to a certain neighborhood, or an Issue-based Registered Community Organization, which can claim a much larger geographic area of concern, even up to entirety of the city.

Each RCO is entitled to notice with respect to a project within its registered boundaries from the applicant within seven days after (i) the applicant has appealed to the Philadelphia Zoning Board of Adjustment for special exception or variance approval, or (ii) the Department of Licenses and Inspections (L&I) has determined that Civic Design Review (to be discussed in a later blog post) is required with respect to the application. L&I is charged with providing the applicant with the identities of each RCO to be contacted and provided notice. The applicant’s notice must contain specific information, including the name of the applicant, the location of the property, the nature of the application and the time and place of any required meeting or hearing.

The Local RCO must schedule and hold a meeting with the applicant within forty five days after the applicant has (i) appealed to the Zoning Board or (ii) has been notified that Civic Design Review is required. No proceeding before the Zoning Board or Civic Design Review Committee can occur until the applicant and Local RCO have satisfied the requirements to meet, or the forty five day period has passed.

The rules surrounding the posting of Zoning Board hearing notices on a property have also changed. For example, under the current Code, those notices must only be posted for the twelve days prior to and including the hearing date. As of August 22, 2012, zoning notices will need to remain posted continuously for the twenty one days prior to and including the hearing date. In addition, if the hearing is continued to a date more than seven days later than the original hearing date, the applicant must post a notice at the property from the date seven days after the original hearing date, until the date of the continued hearing.

This blog post should not be considered a comprehensive summary of all of the changes made by the revised Code in these areas. The revisions to the notice procedures should be reviewed in their entirety as they are intricate and detailed. Close attention must be paid to them, however, as failure to do so could result in the same kinds of project delays for which the Zoning Code Commission sought a remedy.


Alfred R. Fuscaldo is a Director in the Gibbons Real Property & Environmental Department.

The New Philadelphia Zoning Code - Coming Soon to a Property Near You

Ready or not, the revised Philadelphia Zoning Code becomes effective on August 22, 2012. This massive and comprehensive overhaul of the Zoning Code, its first since 1962, required over four years to complete. It was coordinated by the thirty-one member Philadelphia Zoning Code Commission, and is the culmination of countless hours of work by the ZCC, including scores of regular meetings, informational meetings, community meetings, meetings with stakeholder groups and public hearings. The changes from the current Code are many and significant, with important modifications to base and overlay zoning districts, use categories, area and bulk requirements, floor area ratio calculations, parking standards and, perhaps most meaningful, the administrative process. We will be examining these and other major revisions in this blog on a regular basis, both as the Code’s implementation date approaches as well as after it is in effect.


Alfred R. Fuscaldo is a Director in the Gibbons Real Property & Environmental Department.

Bears Beware - NJ Approves First Bear Hunt in Five Years

On Monday December 6, 2010, New Jersey’s first black bear hunt in five years opened. It lasted for six days, coinciding with the annual deer hunt. An attempt to enjoin the hunt filed by Animal Protection League of New Jersey, the Bear Education and Resource Group and two individuals was rejected on Friday by the New Jersey Appellate Division in a per curiam decision that found that the appellants failed to meet the legal requisites for a stay. An emergent application to the New Jersey Supreme Court on Saturday also was unsuccessful.

The New Jersey Department of Environmental Protection (“NJDEP”) estimates that the black bear population in northern New Jersey is around 3,400. The hunt was expected to reduce the population by 250-700 animals. On the first day of the hunt, 264 bears were taken, the largest one-day tally in the hunt’s history. By the end of the hunt, 589 bears had been harvested.

NJDEP determined that a controlled hunt was a necessary component of its Comprehensive Black Bear Management Policy, which was developed to manage the bear population and reduce bear-human conflict. According to the Division of Fish and Wildlife, between January 1 and July 20, 2010, bears have been responsible for one attack on a person, three unprovoked attacks on dogs, 26 livestock kills, 23 attempted home entries, 27 successful home entries, 3 vehicle entries, 74 vehicle strikes, 13 aggressive behavior incidents, 526 nuisance incidents and 301 garbage raids, as well as 548 sightings. In addition to a controlled hunt, the Policy incorporates education, the continuation of ongoing research and population monitoring, appropriate non-lethal control measures, and investigation of all viable population control methods.

In upholding NJDEP’s decision to allow the hunt, the Appellate Division used the familiar language of deference to an expert agency, stating, “We will affirm the decision of the DEP if it is supported by the evidence, even if we may question the wisdom of the decision or would have reached a different result.” The Court also noted that a strong presumption of reasonableness attaches to agency action, reflecting the recognition that agencies have “the specialized expertise necessary to enact regulations dealing with technical matters ...”

Under this legal standard, those opposing the hunt faced an uphill battle. Thus, even though the opponents presented expert evidence claiming flaws in NJDEP’s data, and in the agency’s interpretation of its data, the court could point to NJDEP’s own experts, and its own “significant scientific investigation and research” on the issue. With experts and evidence on both sides, the law gives the agency an advantage, and, in the words of the court, “simply disagreeing, even if based on contrary expert opinions, is insufficient to overcome the presumption of reasonableness ascribed to the Commissioner’s finding.”

The hill was made even steeper by the requirements for a stay, such as a showing of irreparable harm. The Appellate Division acknowledged that the killing of a bear is irreversible, but cited case law requiring a showing of irreparable harm to the species, rather than individual animals -- a showing that the opponents were unable to make.

Despite its often-emotional overtones, then, the debate over the need for, and the appropriateness of, bear hunting in New Jersey resembles that over any number of environmental issues. Once the agency has made a reasoned determination, the courts are unlikely to second-guess its decision. Opponents may need to carry their argument to the Legislature.


Susanne Peticolas is a Director in the Gibbons Real Property & Environmental Department.

Neither Presence Nor Participation at Township Proceedings Required in Order to Appeal Subdivision/ Land Development Approval in Pennsylvania

In what appears to be a case of first impression in Pennsylvania, the Commonwealth Court of Pennsylvania found that a party has standing to appeal a township’s grant of subdivision/land development approval even if that party was not present at, or did not participate in, the township proceedings on the application. This decision, filed on October 28, 2010, is in sharp contrast to established Pennsylvania case law concerning the standing of a party to appeal the decision of the Zoning Hearing Board, where that party’s appearance or objection at the Zoning Hearing Board level is a prerequisite to its ability to appeal. See Leoni v. Whitpain Township Zoning Hearing Board.

In the matter of John J. Miravich and Patricia J. Miravich, et al. v. Township of Exeter, Berks County, Pennsylvania, No. 2133 C.D. 2009, the Commonwealth Court drew a distinction between land development approval applications and zoning hearing board applications with respect to an appellant’s standing to appeal. In Miravich, the developer filed an application for preliminary subdivision and land development approval. That application was considered by the Township’s Planning Commission and by its Board of Supervisors, and ultimately approved by the Board of Supervisors. There is nothing in the meeting minutes of the Planning Commission or Board proceedings which indicate that the Miravichs or the any of the other named appellants received notice of, or attended, those meetings.

The appellants timely filed their land use appeal to the Berks County Court of Common Pleas. The Township then sought to dismiss the appeal, asserting that the appellants had no standing to appeal the Board’s action because they had not appeared during any of Township proceedings. The Common Pleas Court found in favor of the Township and dismissed the appeal.

The Commonwealth Court reversed, noting that the Common Pleas Court, in denying the standing of the appellants, could only point to case law relating to appellant standing from Zoning Hearing Board decisions. The case law with respect to those matters is well settled, making clear that an appellant has no standing to appeal if it does not formally appear or object at the zoning hearing board proceedings.

The Commonwealth Court in Miravich found that standing consists of two concepts:

  • “substantive standing” examining whether the litigant has “sufficient interest in the outcome of the litigation to be allowed to participate,” and
  • “procedural standing”, i.e, “[w]hether one has asserted his right to participate sufficiently early.”

Substantive standing is typically found where a party is aggrieved, or in other words, where the party has a direct, immediate and substantial interest in the application. A neighbor’s proximity to the subject property, such as existed here, will normally satisfy that requirement. It is the procedural question which separates the subdivision/ land development approval matters before the Planning Commission and the Board of Supervisors from the Zoning Hearing Board proceedings.

The Pennsylvania Municipalities Planning Code treats Zoning Hearing Board hearings as much more formal proceedings, requiring that, among other things, they conform to specific procedural requirements including the posting of the subject piece of property, the right of all parties to be represented by counsel and present evidence and arguments, and that a stenographic record of the hearing be kept. The MPC also defines those who will be afforded party status before the Zoning Hearing Board.

In contrast, applications for subdivision/ land development proceed down a much more informal track. The MPC even specifically states that public hearings are not required. As a result, the Commonwealth Court found that, “because similar procedural protections are not required in subdivision and land development applications, it will be manifestly unfair, if not a denial of due process, to impose such a stringent rule as a prerequisite to subdivision and land development appeals.” Consequently, the fact that the Miravichs and the other appellants did not appear at or participate in the Township meetings on the application was not a bar to their appeal of the Board’s decision. The Commonwealth Court determined that such an appellant need only satisfy the “party aggrieved” standard.

The Court does note however that if the Board of Supervisors had voluntarily followed the procedural requirements imposed by the MPC on a Zoning Hearing Board matter, than the Commonwealth Court would have agreed with the Court of Common Pleas that the appellants would have had to appear during the proceedings in order to appeal and would have been subject to the Leoni standards.

As a result of this decision, a developer can no longer take for granted the fact that the absence of participants at subdivision/ land development proceedings before the Township will preclude a viable appeal from the decision of the Township on that application. The prudent developer should consider waiting the requisite appeal period from the issuance of that Township decision before proceeding with the project and confirm that no appeal was filed.

Whether the Commonwealth Court’s decision has or will be appealed to the Supreme Court of Pennsylvania is unknown as of the date of this writing.


Alfred R. Fuscaldo is a Director in the Gibbons Real Property & Environmental Department.

New York Subdivision Law Amended to Allow Planning Boards Greater Flexibility in Granting Extensions

Due to the current economic climate and project financing difficulties, Section 276(7)(c) of the New York Town Law was recently amended to allow planning boards greater flexibility in extending subdivision approval beyond the two ninety (90) day extensions previously allowed.

Town Law 276(7)(c) provides that a conditional final subdivision plat expires 180 days following the date of the resolution of approval unless all conditions are satisfied. It further authorizes planning boards to grant two extensions, having a duration of ninety (90) days each, after expiration of the original 180-day timeframe for satisfaction of conditions of approval. The costs of satisfying conditions of approval can be significant. If the conditions are not satisfied by the end of the second extension, the subdivision approval becomes null and void, and the applicant would then be required to commence the approval process all over again at significant time and expense.

The amended law now permits planning boards discretion to extend conditional final plat approval for additional ninety (90) day periods, with no limitation on the number of extensions available, “if, in a planning board’s opinion, such extension is warranted by the particular circumstances.” The bill, S07241, had a relatively quick turn-around time by the legislature after being sponsored by Senator Andrea Stewart-Cousins from the 35th Congressional District in March of this year. The bill received Senate approval in April, Assembly approval in June and was signed into law by Governor Paterson on September 17, 2010 as 2010 N.Y. Laws 522.

The justification behind the legislation indicates that the current economic climate, coupled with the difficulty in obtaining project financing in many cases, argued for giving planning boards the discretion to extend conditional approval of the final plat. As further noted, “there are already significant hurdles and expenses generated in residential development which should not be compounded because of a time limitation that would effectively terminate a project.” The text of the bill is available at the New York State Assembly’s website which can be accessed by clicking here and the memorandum summarizing the bill and setting forth additional information regarding the justification behind the amendment can be accessed here.


Howard D. Geneslaw is a Director in the Gibbons Real Property & Environmental Department.  Jennifer M. Porter, an Associate in the Gibbons Real Property & Environmental Department, assisted in the preparation of this post. 

Time-out: Pennsylvania Passes Permit Extension Act

Last week, Governor Rendell signed the Permit Extension Act ("Act") into law as part of the approval of the budget, breathing life into expired and expiring permits and the development projects they represent.

The Act, found at pages 99-110 of the budget bill, extends the expiration date of many governmental approvals, permits and agreements, including building permits and construction permits, relating to construction and development projects.

What Permits Does It Affect?

The Act applies to certain permits issued under more than thirty statutes, including:

The Act also applies to certain permits issued to condominiums, cooperatives and planned communities.

The Act Does Not Apply to All Permits

The Act does not apply to other statutes, including the:

The Act also does not apply to permits with expiration dates determined by federal law, or to administrative consent orders and enforcement actions for a permit subject to the extension period.

How Long is a Permit Extended?

Under the Act, a permit granted under an applicable statute and having an expiration date after December 31, 2008 may have its expiration date extended until July 1, 2013, regardless of whether the permit was issued before or after the extension period. The Act does not shorten the life of a permit with an expiration date after July 1, 2013.

How Can You Find Out If the Act Applies to Your Permit?

The permit holder can request verification, subject to a fee, from the issuing agency of the existence of a valid permit and its expiration date, but must identify the permit in question and its anticipated expiration date. The issuing agency must tell you in writing within 30 days of receiving your request:

  1. whether you have a permit;
  2. its expiration date; and
  3. stating any issues related to the validity of the permit.

Except in Philadelphia and Pittsburgh, the failure of the issuing agency to respond within 30 days will result in the "deemed affirmation of the existence of the [permit] and the expiration date set forth in the request."

In the City of Philadelphia, in order to exercise its right to extend the permit under the Act, the permit holder must provide the issuing agency with notice of its intent to extend the permit and pay the agency a fee equal to fifty percent of the original application fee, not to exceed $5000. Elsewhere, the issuing agency may charge a fee up to twenty five percent of the original application fee, but no more than $5000, to extend the Permit.

Permits granted pursuant to the MPC are protected from changes in a "zoning, subdivision or other governing ordinance or plan," such that those changes will not affect the permit holder’s right to begin or complete the activities authorized by the permit during the extension period. The extension period is further extended for the length of litigation, including appeals, concerning permits issued under the MPC that prevent the completion of the work authorized by the permit.

The Act brings Pennsylvania into line with New Jersey which enacted its own permit extension legislation in 2008. The Act gives needed flexibility and time to developers who may be facing financial challenges in the current economy. At a minimum, permit holders should consider verifying the viability of permits, and extending them as required, now so they will be in a position to proceed when market conditions warrant.


Alfred R. Fuscaldo is a Director in the Gibbons Real Property and Environmental Department.