In the event that a developer submits an application for development
proposing a development that is barred or prevented, directly or indirectly,
by a legal action instituted by any state agency, political subdivision
or other party to protect the public health and welfare or by a directive
or order issued by any state agency, political subdivision or court
of competent jurisdiction to protect the public health and welfare,
the municipal agency shall process such application for development
in accordance with this chapter and municipal development regulations,
and, if such application for development complies with municipal development
regulations, the municipal agency shall approve such application conditioned
on removal of such legal barrier to development.
In the event that development proposed by an application for
development requires an approval by a governmental agency other than
the municipal agency, the municipal agency shall, in appropriate instances,
condition its approval upon the subsequent approval of such governmental
agency; provided that the municipality shall make a decision on any
application for development within the time period provided in this
chapter or within an extension of such period as have been agreed
to by the applicant unless the municipal agency is prevented or relieved
from so acting by the operation of law.