Tax Court: 160 Chubb Properties, LLC v. Township of Lyndhurst, Docket Nos. 002442-2014, 006305-2015; opinion by Orsen, J.T.C., decided December 14, 2018. For plaintiff – Joseph G. Ragno and Robert J. Guanci (Waters, McPherson, McNeill, P.C., attorneys); for defendant – Kenneth A. Porro (Chasan, Lamparello, Mallon & Cappuzzo, P.C., attorneys).
Plaintiff, 160 Chubb Properties, LLC, sought relief under N.J.S.A. 54:51A-8 (“Freeze Act”) for the 2017 tax year based on the settled and adjudged tax assessment for the 2015 base tax year. Defendant, Township of Lyndhurst, opposed application of the Freeze Act for the 2017 tax year arguing that plaintiff waived Freeze Act protection under the settlement agreement. Defendant also sought a plenary hearing arguing that plaintiff performed improvements to the property precluding Freeze Act relief. The court determined that the Freeze Act applies unless the taxpayer affirmatively waives its application. The court found that the settlement agreement did not contain an affirmative waiver, nor was any evidence offered that plaintiff agreed to limit Freeze Act protection. The court also found that defendant was not entitled to a plenary hearing since it did not make a prima facie showing that a substantial and meaningful change in value occurred to the property. The court determined that defendant’s bare allegations of increased tenant occupancy; the cost of work to be performed under construction permits; and the sales price of the property were insufficient to demonstrate a change in value. Accordingly, the court granted plaintiff’s motion to apply the Freeze Act to the 2017 tax year assessment.