MetroDev V, LP (“Landowner”) owns property (the “Property”) in an area where the boundary lines of the Township of Exeter (the “Township”), and two surrounding municipalities meet. Prior to July 25, 2005, the Property was zoned low density residential; however, on July 25, 2005 the Township rezoned the Property to suburban residential. The changed classification reduced the number of permitted residential lots from 30 to 7. In August 2005, Landowner filed a validity challenge of the new ordinance with the Township’s Zoning Hearing Board (“ZHB”) alleging procedural irregularities in its adoption. In September 2005, Landowners filed a preliminary subdivision plan for a residential development comprising 34 residential lots, 26 of which were located in the Township. The plan was based on a sketch plan that had previously been submitted under the old ordinance. Certain waivers were sought from the Township’s Subdivision and Land Development Ordinance (“SALDO”). On September 26, 2005, the Township and Landowner entered into a settlement agreement whereby Landowner withdrew its procedural validity challenge in exchange for the Township agreeing to review and potentially approve the land development plan under the terms of the old zoning ordinance. In July 2008, the Township approved Landowner’s plan, subject to certain conditions. Pursuant to the settlement agreement, the Township had reviewed the plan under the old ordinance. Adjacent property owners (“Objectors”) filed a land use appeal with the Court of Common Pleas of Berks County, which was dismissed for lack of standing because Objectors had not appeared in the earlier proceedings.

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