Navy Yard Four Associates, LLC v. Department of Environmental ProtectionNavy Yard Four Associates, LLC v. Department of Environmental Protection
Discussion of the public trust doctrine and
This court rejected challenges by the owner of certain property abutting Boston Harbor (that had been owned by the Boston Redevelopment Authority [authority] at the time of the issuance of a license by the Department of Environmental Protection [department]) to the department‘s implementing regulations under
CIVIL ACTION commenced in the Superior Court Department on December 20, 2011.
Donald R. Pinto, Jr., for the plaintiff.
Seth Schofield, Assistant Attorney General, for Department of Environmental Protection.
John A. Pike, for Conservation Law Foundation, amicus curiae, submitted a brief.
KAFKER, C.J. This appeal arises from a dispute over public accommodation requirements imposed within a waterways license issued by the Department of Environmental Protection (DEP) pursuant to
1. Background. From 1800 to 1979, NYF‘s property was part of a larger parcel owned by the Federal government, originally purchased to establish the Charlestown Navy Yard. See St. 1800,
In March, 2003, LDA Acquisition, LLC (LDA), submitted a waterways license application for the property to DEP pursuant to
In January, 2005, Navy Yard Four Associates Limited Partnership notified DEP that it had taken over the project. On May 26, 2005, the BRA conveyed the property to Navy Yard Four Associates Limited Partnership. Thus, the waterways license issued on June 11, 2005, to Navy Yard Four Associates Limited Partnership rather than to LDA. In October, 2005, Navy Yard Four Associates Limited Partnership then conveyed the property to NYF, the plaintiff, for nominal consideration.3
In addition to approving NYF‘s plans to construct Harborview, the DEP license requires in pertinent part that “at least seventy-five percent of the ground floor of the building be maintained as Facilities of Public Accommodation [FPAs] as defined at
In 2006, the Office of Coastal Zone Management and DEP completed the “Massachusetts Chapter 91 Mapping Project,” which established the presumptive historic high and low water marks along the Massachusetts shore for purposes of DEP‘s jurisdiction under c. 91. With the new information provided by the mapping project, it became сlear that the entire footprint of the building lies between the historic high water mark and the historic low water mark.7
In September, 2009, NYF submitted an application to DEP to amend its waterways license, seeking (1) a reduction of the amount of floor area required to be used as FPAs from 32,225 square feet
Pursuant to its regulations, DEP reviewed NYF‘s application, held a public hearing, and considered the company‘s response to comments. On November 9, 2010, DEP issued a written determination denying the requested amendment. As stated in the determination‘s findings, this decision was based on the fact that when the original license was granted, the property was on previously filled “Commonwealth [t]idelands,” and that “[o]nce held by the Commonwealth, the type of tidelands can‘t be changed back without a specific act of the [L]egislature.”
On November 24, 2010, NYF requested an adjudicatory hearing before DEP to challenge the denial of its license amendment application. On cross motions for summary decision, the presiding officer issued a recommended final decision on November 21, 2011, affirming DEP‘s written determination, which the DEP commissioner adopted in his final decision on November 22, 2011.
As a result, NYF filed a complaint in Superior Court seeking judicial review of DEP‘s final decision pursuant to
2. Discussion. a. Public trust doctrine. NYF‘s claim implicates our public trust doctrine, and therefore, “[t]o resolve this dispute we must consider in historical perspective the allocation of rights among private parties, the Commonwealth, and the public to use, own and enjoy one of the Commonwealth‘s most precious natural
Under common law, private ownership in coastal land could historically extend only landward of the mean high water mark. Arno v. Commonwealth, supra. Seaward of the high water mark, ownership remained with “the Crown [and eventually the Massachusetts Bay Colony, followed by the Commonwealth,] but subject to the rights of the public to use the coastal waters for fishing and navigation.” Id., quoting from Opinion of the Justices, 365 Mass. 681, 684 (1974). This changed, however, with the Colonial Ordinance of 1641-1647, which authorized the transfer of title to property between the high and low water marks — the tidal flats — to private parties, though this title has always had “strings attached.” Arno v. Commonwealth, 457 Mass. at 449, quoting from Boston Waterfront, 378 Mass. at 637. While “[g]reater public rights exist in submerged lands, the land lying seaward of the low water mark,” Arno v. Commonwealth, supra at 450, both tidal flats and submerged lands аre referred to collectively as “tidelands,” id. at 436, and “[a]ll tidelands below [the historic] high water mark are subject to [the public trust doctrine].” Trio Algarvio, Inc. v. Commissioner of Dept. of Envtl. Protection, 440 Mass. 94, 97 (2003).
In 1983, the Legislature made numerous material amendments to c. 91. See St. 1983, c. 589, § 21. Foremost for our purposes, the
Consistent with the Legislature‘s delegation of authority to DEP to protect the public trust, see
b. DEP regulations. On appeаl, NYF challenges DEP‘s Waterways Regulations, arguing that the agency‘s definition of “Commonwealth [t]idelands” exceeds its regulatory authority and vio-
When considering the validity of lawfully promulgated regulations, we utilize a two-part test. “Using conventional tools of statutory interpretation, we first consider ‘whether the Legislature has spoken with certainty on the topic in question, and if we conclude that the statute is unambiguous, we give effect to the Legislature‘s intent.’ ” Biogen IDEC MA, Inc. v. Treasurer & Receiver Gen., 454 Mass. 174, 186 (2009) (citation omitted). However, “if the Legislature has not directly addressed the issue and the statute is capable of more than one rational interpretation, we proceed to determine whether the agency‘s interpretation may ‘be reconciled with the governing legislation.’ . . . The ultimate question is whеther the policy embodied by the agency‘s interpretation is reasonable.” Id. at 187, quoting from Goldberg v. Board of Health of Granby, 444 Mass. 627, 633 (2005). See
i. Commonwealth tidelands may include tidal flats. Although
Of course, “the language of the statute is the principal source of insight into the legislative intent,” Acme Laundry Co. v. Secretary of Envtl. Affairs, 410 Mass. 760, 770 (1991), and “[t]he Legisla-
The purpose behind c. 91 also supports DEP‘s interpretation. “General Laws c. 91 sets out to ‘preserve and protect,’ under [DEP‘s] watch, the public‘s rights in tidelands.” Moot v. Department of Envtl. Protection, 448 Mass. at 347. As explained previously, c. 91 represents the modern iteration of the public trust doctrine. This public trust has always applied to both submerged lands and tidal flats, as both types of shore land were recognized as special forms of property with unusual value. See Trio Algarvio, Inc. v. Commissioner of Dept. of Envtl. Protection, 440 Mass. at 97; Arno v. Commonwealth, 457 Mass. at 449. Although a distinction between submerged lands and tidal flats is recognized under the doctrine, with submerged lands entitled to more public protection, id. at 450, tidal flats are still of significant public concern and are not “private” in the traditional sense, as NYF appears to contend. Rather, a categorical exclusion of all tidal flats from the statutory definition of “Commonwealth tidelands,” regardless of ownership, undermines the public rights and interest in this special form of property.
In light of the statutory language and purpose, DEP‘s interpretation of “Commonwealth [t]idelands” to include both submerged lands and tidal flats is reasonable and entitled to deference. See Biogen IDEC MA, Inc. v. Treasurer & Receiver Gen., 454 Mass. at 187; Goldberg v. Board of Health of Granby, 444 Mass. at 633.
ii. Definition of “Commonwealth.” NYF next challenges DEP‘s regulatory definition оf “Commonwealth” in the phrase “Commonwealth [t]idelands,” which expressly includes the Commonwealth‘s political subdivisions and quasi public agencies or authorities.
The plain meaning of “Commonwealth” in this context is less obvious. Whether the reference in c. 91 to “Commonwealth tidelands” is meant to include tidelands held by “political subdivisions or a quasi-public agency or authority” is not without ambiguity. We recognize that “[s]tatutory silence, like statutory ambiguity, often requires that an agency give clarity to an issue necessarily implicated by the statute but either not addressed by the Legislature or delegated to the superior expertise of agency administrators.” Goldberg v. Board of Health of Granby, 444 Mass. at 634. See Middleborough v. Housing Appeals Comm., 449 Mass. 514, 523 (2007). “The ultimate question is whether the policy embodied by the agency‘s interpretation is reasonable.” Biogen IDEC MA, Inc. v. Treasurer & Receiver Gen., 454 Mass.
DEP‘s interpretation is also buttressed by the process prescribed for DEP‘s rulemaking authority, which reserves oversight of promulgated regulations for the Legislature.
c. DEP‘s decision not to grant the amendment. Although we have rejected NYF‘s challenge to the validity of the regulations, we must still address DEP‘s particular application of the statute and regulations to NYF‘s proposed license amendment. Generally, “the application of a regulation to the particular facts of a case is within an agency‘s discretion and we accord an agency‘s interpretation of its own regulations substantial deference.” Biogen IDEC MA, Inc. v. Treasurer & Receiver Gen., 454 Mass. at 184. The court will only overturn the agency‘s action “if it was arbitrary, unreasonable or inconsistent with the plain terms of the regulation itself.” Ibid. In our review, we exercise considerable restraint, as “[t]he court should be slow to decide that a public board has acted unreasonably or arbitrarily and should search for some ground which reasonable [people] would regard as a proper basis for the agency‘s action.” Fioravanti v. State Racing Commn., 6 Mass. App. Ct. 299, 302 (1978). We conclude that DEP‘s application of its regulations and denial of NYF‘s proposed license amendment was not arbitrary or capricious, an abuse of discretion, or otherwise not in accordance with law.
During the time the BRA owned the property, from 1979 until 2005, the property‘s tidelands qualified as “Commonwealth tidelands” due simply to the BRA‘s ownership. As a quasi public
The conveyance of the property from the BRA to NYF‘s predecessor in interest and then to NYF, both private entities, did not change the classification of the tidelands as “Commonwealth [t]idelands” for two reasons. First, once the property was conveyed to NYF, the waterways license was automatically transferred to NYF pursuant to
Secondly, when NYF gained title to the property, it did so “subject to an express or implied condition subsequent that it be used for a public purpose.”
Lastly, NYF argues that the classification of its property as lying on “Commonwealth [t]idelands” contradicts the presumptions embedded in DEP‘s definitions of both “Commonwealth [t]idelands” and “[p]rivate tidelands.”16 The presumptions in question essen-
3. Conclusion. For the above stated reasons, we affirm the amended judgment in favor of DEP.
So ordered.
Notes
Additionally, although it was LDA, the BRA‘s tenant, that originally applied for the license, under the regulations “[a]pplicant means any person submitting a license or permit application or other request for action by the [DEP] pursuant to“Unless otherwisе provided in the license, a valid license shall run with the land and shall automatically be transferred upon a change of ownership of the affected property within the chain of title of which the license has been recorded. All rights, privileges, obligations, and responsibilities specified in the license shall be transferred to the new landowner upon recording of the changed ownership.”
“shall act in accordance with the following provisions: (a) [DEP] shall presume that tidelands are Commonwealth tidelands if they lie seaward of the historic low water mark or of a line running 100 rods (1650 feet) seaward of the historic high water mark, whichever is farther landward; such presumption may be overcome only if [DEP] issues a written determination based upon a final judicial decree concerning the tidelands in question or other conclusive legal documentation establishing that, notwithstanding the Boston Waterfront decision of the Supreme Judicial Court, such tidelands are unconditionally free of any proprietary interest in the Commonwealth; (b) [DEP] shall presume that tidelands are not Com-
monwealth tidelands if they lie landward of the historic low water mark or of a line running 100 rods (1650 feet) seaward of the historic high water mark, whichever if [sic] farther landward; such presumption may be overcome only upon a showing that such tidelands, including but not limitеd to those in certain portions of the Town of Provincetown, are not held by a private person.”
“shall presume that tidelands are private tidelands if they lie landward of the historic low water mark or of a line running 100 rods (1650 feet) seaward of the historic high water mark, whichever is farther landward; such presumption may be overcome upon a showing that such tidelands, including but not limited to those in certain portions of the Town of Provincetown, are not held by a private person or upon a final judicial decree that such tidelands are not subject to said easement of the public [for navigation, fishing, fowling, and passing freely over and through the water].”