Over the past few weeks, the New Jersey Supreme Court and the Federal Court of Appeals for the Ninth Circuit issued important decisions that have implications for all parties involved in land use and development including developers, land use boards, local governments, homeowners, and vacationers alike. In Shipyard Associates v. Hoboken, decided May 5, 2020, the New Jersey Supreme Court held that zoning ordinances that became effective within two years after a developer obtained final site plan approval could not be applied to prevent the developer’s approved project. In Rosenblatt v. Santa Monica, the Supreme Court declined to review the judgment of the Ninth Circuit upholding a local ordinance banning most short-term rentals in the city against a claim that such an ordinance violated the Constitution’s Dormant Commerce Clause. Both cases and their implications are discussed below.

‘Shipyard Associates v. Hoboken’

The New Jersey Supreme Court’s Shipyard Associates decision is the latest installment in a long-running dispute between the City of Hoboken and Shipyard Associates L.P. (“Shipyard”). The genesis of the dispute arose over Shipyard’s plan to construct two high-rise residential towers on the Hoboken waterfront. Shipyard obtained final site plan approval to construct that project in 2012 over Hoboken’s strenuous objection and eventual litigation.

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