|
|
|
|
Concerned Citizens for Saugatuck Dunes State Park was founded in the fall of 2001 to work
for the preservation and expansion of Lower Michigan's most spectacular state park after
the City of Holland and Laketown Township each submitted separate plans to the Michigan DNR
to use the park for a water treatment plant. The DNR ultimately rejected the details of those
two plans but not the overall concept. Both Holland and Laketown Township continue to pursue
the state park and its environs as the most attractive location for a water treatment plant.
Concerned Citizens does not believe that a water plant can be built in or next to Saugatuck
Dunes State Park or maintained there without causing permanent damage to the park. Please
browse this web site to learn more about the park, the threats to it, and what you can do
to help.
|
|
January 21, 2010
|
Upcoming Events
|
|
| |
January 9 through March 1, 2010 - Micro/Macro: Fresh Views of Saugatuck & Douglas
|
|
| |
|
Saugatuck Center for the Arts
Bertha Krueger Reid Exhibition Hall
January 9, 2010 through March 1, 2010
M-F, 9-5 EST
Sponsored by:
Pat Sax
Phil Miller & Suzy Richardson
View anew the environmental treasures of our Saugatuck/Douglas community through
these remarkable works from local photographers John M. Fleming and Bill Werme.
Micro/Macro features Bill Werme’s stunning aerial views of the Saugatuck/Douglas
landscape juxtaposed with John Fleming’s lush close-ups from the same spaces.
Soar over the river, lake, dunes, and forest then discover the pebbles, snowflakes,
ice shards, and leaves. These artful views capture the mighty - and quiet - beauty
of our shoreline region.
All prints in the exhibition are available for purchase; 100% of sale proceeds will
help underwrite the SCA’s 2010 exhibition programming.
|
|
October 26, 2009
|
|
Saugatuck to Purchase South Denison
|
|
After years of negotiation and one failed attempt, representatives for the city of
Saugatuck have arrived at the threshold of an agreement to purchase the South
Denison tract from its current owner, ex-billionaire Aubrey McClendon. Purchase price?
$20 million.
|
|
If the sale goes through, Saugatuck proposes to create a natural area on the property
with designated trails, stairs, and platforms from which to view the protected dunes
and the lakeshore.
The Land Conservancy of West Michigan
took the lead in negotiations, with
The Nature Conservancy of Michigan
and
Saugatuck Save Our Shoreline
assisting in fund procurement. To date, some $6 million has reportedly been pledged by
various private entities including Fred and Lena Meijer, the Jim Brooks family, the Frey
Foundation, the J.A. Wollam Foundation, and various anonymous donors.
|
|
|
|
In early Spring of this year the Michigan Natural Resources Trust Fund board denied a grant
application for the purchase primarily because they do not formally consider such requests
until December of each year. However, in response to an appeal from State Senator Patricia
Birkholz, the board passed a resolution stating they would support granting between $11.6 and
$15 million toward eventual purchase.
The board had strong reservations about the non-negotiable asking price, $25 million a that
time. Their concern was understandable, considering the entire Denison property had just
sold for $39.5 million and the south tract's 171 acres comprise only slightly over 40% of
the total. Further, unlike the larger 232 acre Denison North property, the south is basically
undevelopable due to being landlocked and designated critical dune area. Also, the proud new
owner was griping loudly (and still is) that his purchase wasn't worth what he just paid
for it. A bit odd, bearing in mind no one was holding a gun to his head during closing.
The trust fund board has been presented a new grant request of $12.6 million, to be considered
in early December. That leaves around $4.5 million to be raised, according to Nature Conservancy
of Michigan director Helen Taylor, who estimates total project cost to be in the neighborhood
of $23.1 million including a maintenance endowment. The Land Conservancy of West Michigan will
carry the torch in seeking donations from public sources and the local community to cover the
difference.
"This is the closest we’ve ever been," said Phil Miller, co-chair of the Saugatuck Save Our
Shoreline, but "There is more land to preserve."
That's so true.
McClendon recently suggested the township create a new Planned Unit Development district, just
for him, which would apply to the North Denison and nearly 100 adjacent acres he has acquired
since he outbid numerous conservation organizations to possess the Denison land. His dream
district would allow marinas, multi-family townhouses and condominiums, hotels, golf courses,
horse stables, restaurants, and other commercial uses, many which have never been allowed under
any previous zoning, far less the new R-4. You can view the full text of his proposal at the
Saugatuck Township website on page 9 of their
Wednesday, October 7, 2009 board agenda
in .pdf format.
David Swan, president of the
Saugatuck Dunes Coastal Alliance,
observed McClendon's proposal completely contradicts the
Tri-Community Comprehensive Plan (9.8MB)
and asked that the township swiftly reject it.
But, McClendon has previously threatened to sue the township for $1 million plus in tax refunds
if things don't go his way. Never mind that in 2006 he graciously agreed to stay all attempts
to bankrupt the township via legal actions in return for any plan he might present for the property
over a period of three years being considered "in good faith".
That agreement recently expired and McClendon once again trotted out his tired complaint that
the Denison property was improperly rezoned from the lenient R-1, 2, and 3B to the more
restrictive R-4. He states, among other things, that meetings were not correctly posted and the
rezoning devalued his property, never mind it wasn't his property when it was rezoned.
For the moment, McClendon has once again offered his battered olive branch by extending the old
agreement through April of 2010. After that, the branch will likely be presented as a flail.
|
|
March 30, 2009
|
|
So Many Lawsuits...
|
|
So many lawsuits, so little time, so little money...
Stephen Neumer is suing Saugatuck Township on behalf of Aubrey McClendon to force a change
to the tax valuation on McClendon’s township properties - 503 acres in total, 332 (66
percent) of which lie north of the river.
The lawsuit is an attempt to place 70 percent of the taxable value of McClendon’s properties
on the former south Denison (171 acres, or 34 percent of the total). The south Denison is
currently inaccessible making development impractical, if not impossible. The taxable value
should be negligible. By what logic is Neumer arguing that these acres represent 70 percent
of the taxable valuation of McClendon’s properties?
Neumer is also suing the Deam family, who own the old Saugatuck lighthouse property north of
Oval Beach, to gain access to the south Denison. But the action repeats the 1965 lawsuit which
already determined that there is no legal access across that land.
The south Denison will be difficult to develop because of endangered species, Indian burial
grounds, wetlands, flood plains and critical dunes. Neumer would also have to first get
permission to access the property through Oval Beach or Fishtown Trail (currently a narrow,
eroded path between Mt. Baldhead and the Oxbow - again across city-owned property).
The question of tax valuation is vital of course, but note also who would take on the burden
of the shifted tax responsibility: the City of Saugatuck. Because the city is negotiating to
buy the south Denison, Neumer is really looking to load the heaviest tax responsibility onto
the people of Saugatuck.
If successful, Neumer's lawsuit would create a severe four-fold economic strain on our
local community:
1) Neumer is selling the city an island - south Denison is inaccessible - at a greatly inflated
price. His appraisal assumed access when legally there is no access.
2) Not only has Neumer inflated the price of the south, he now wants the city to pay an unfair
portion of McClendon's property taxes.
3) Placing 70 percent of the tax value on the south will cost our community more than $600,000
in tax revenue for just one year; in five years this will accumulate to more than $3 million in
lost services. Visit the township Web site for details.
4) Shifting 30 percent of the tax value to the north provides McClendon a huge tax reduction,
making it easier for Neumer to flip the property or develop.
Neumer's lawsuits have already caused a considerable burden on local officials, families
and philanthropic funds and volunteer hours.
Neumer likes to claim the lawsuit stems from the township rezoning the former Denison, which
changed the number of houses that could be built there. But the township changed the zoning
before McClendon finalized purchase of the parcel.
The township did so to comply with the recommendations in the Tri-Community Comprehensive
Plan, a plan years in the making, and after nearly a full year of transparent public meetings
- meetings where Neumer could have voiced his concerns.
The township legally changed the zoning before McClendon finalized the purchase, but because
of the way Neumer structured McClendon's offer, McClendon could not back out of the
agreement due to a zoning change.
Perhaps Neumer is pursuing these lawsuits in hopes of forcing our community to bail McClendon
out of a risky speculative investment.
Since last year the Saugatuck Dunes Coastal Alliance has raised more than $80,000 for a legal
fund to help fight these lawsuits. The Alliance continues to help Saugatuck Township with its
mounting legal bills.
We encourage others to consider making a donation to the township general fund to fight against
McClendon and Neumer's frivolous lawsuit.
David Swan
President,
Saugatuck Dunes Coastal Alliance
|
|
March 3, 2009
|
|
The Denison Property - An Update
|
|
There's been a lot of action surrounding the Denison property lately, particularly
the South Denison. Not much has actually been resolved, however. Depending on your
views that could be considered unfortunate, or perhaps otherwise.
Early in January, after lengthy negotiations between McClendon and a consortium of
interests including
The
Nature Conservancy, the
Saugatuck Dunes Coastal
Alliance, and the city of Saugatuck, McClendon offered to sell the 171 acre Denison
South property for $25 million, ultimately to be transferred to the City of Saugatuck.
The deal was to be finalized by March 2nd, with neither the date nor the terms negotiable.
Sounds pretty cut and dried, eh? But, as always, the devil is in the details. Among the
terms were satisfactory settlement of both a tax dispute McClendon has with Saugatuck
Township and a lawsuit against a family with deep roots on the Saugatuck area shoreline.
There was also, of course, the small issue of obtaining funding for the purchase.
You may recall that McClendon took possession of the entire Denison property early in
2006, coldly outbidding a coalition of local organizations led by Saugatuck Save our
Shoreline (SOS). The DNR has openly had its eye on the property for addition to Saugatuck
Dunes State Park since the park's inception. For decades, various groups have
actively sought to acquire it for that purpose. Finally, in 2006, with nearly $38 million
pledged for the purchase, the dream was about to be realized!
But Oklahoma billionaire McClendon blithely pushed the alliance of groups aside, upped
the ante to an unreachable $39.5 million, and walked away with the prize; 403 acres of
nearly pristine duneland framing the only undeveloped river mouth remaining on the entire
Lake Michigan shore. His intentions for the one of a kind property do not feature public
use.
The plot thickens...
Go back a few years. Saugatuck Township began to discuss a growing desire to protect this
and similar lakeshore properties from the rampant development the area was experiencing.
They started to rewrite the zoning ordinances to establish a more conservative district which
would, among other things, limit the number of homes that could be built on such parcels.
The township helped promote the Tri-Community Survey then utilized the results to guide
them as they shaped the new code. The effort of years finally resulted in a sizeable swath
of lakeshore property being rezoned from the free wheeling R-3 to the fairly restrictive
new R-4 Lakeshore Open Space, winning the applause of area residents and offering significant
new protections to our unique and vanishing dunes, lakeshore, and riverfront.
|
|
Not long thereafter McClendon outbid the conservation organizations and agreed
to purchase the Denison property from the trusts holding it. He then promptly began
to beat his chest about the unfair zoning change despite the fact it was in the works
years before he had made any commitment. He claimed the rezoning unfairly reduced
the value of the property to something well beneath his purchase price.
That may have been a bit more convincing if Mr. McClendon had not just firmly
established his personal evaluation of the property's worth, under the new
zoning, by outbidding a bunch of folks to call it his own.
|
South Denison and Lake Michigan from above the Oxbow.
|
|
|
McClendon filed appeals with the Michigan Tax Tribunal arguing the property had been
devalued by the rezoning, which undoubtedly it had, but before he had any standing in
the issue. His attorney, not surprisingly, stated he felt they had a very strong case.
McClendon then forcefully presented the township with a
consent agreement
whereby he would drop his various lawsuits in return for the zoning being rolled back
to the previous R-3 for a period of one year.
Outcry against the proposal was deafening, but as the deadline approached no one felt
confident what the board's decision was going to be. Apparently the suspense was
a bit much for McClendon, because at the very meeting where the pronouncement was to
be made, described in our
archives, his attorney instead offered to "stay" their various suits in return for
the township tabling the agreement. So much for strong cases.
Meanwhile, like the good neighbor Mr. McClendon has always clearly wished to be, he
is suing the Deam family for adverse possession to gain access to the Denison South
via a right of way across the lighthouse property that divides it and which the Deam
family has owned for generations. Appreciating this kind of billionaire etiquette must
be something of an acquired taste. A favorable outcome to this suit was one of the
purchase prerequisites.
The one-year stay of the tax appeal expired December 31 of 2008. Brandishing the stick
once again, McClendon’s attorney stated they will seek in the neighborhood of $1 million
in tax refunds. However, McClendon politely offers to drop all lawsuits if the township
will split the property valuation such that the undevelopable 171-acre Denison
South now be considered worth 70 percent of the total and the developable 232-acre north,
plus an adjoining 100 acres McClendon has since purchased, be valued at (cough)
30 percent. This was another of the purchase agreement prerequisites.
Saugatuck Township supervisor Bill Wester had a problem with the idea, however. "I
don’t want to queer the deal, but..." he said "I don’t think what he’s proposing for
us is reasonable." Yah, it’s little hard to get your head around that kind of math.
That's probably why McClendon is the billionaire.
Well... Was. His fortunes have since taken rather a nasty tumble, due to a bit of
over-grasping, and he is currently reduced to a mere multi-millionaire. Still, that's
plenty daunting for a small community to go up against, despite a number of local attorneys
having repeatedly and earnestly offered their assistance pro bono, and local groups and
individuals donating about $15,000 to the cause thus far.
So, where do things stand presently?
The decreed date has now passed, and adequate funding could not be arranged in such a
short time. The entire endeavor pivoted on a grant from the Michigan Natural Resources Trust
Fund. But the trust fund board had deep reservations about the inflated price, and they
were very reluctant to make an out of cycle grant. They do not formally approve grant
requests till December of each year. Despite this, they passed a resolution stating they
support granting between $11.6 and $15 million, at State Senator Patricia Birkholz's
request, but they also suggested the purchase price be renegotiated.
At the moment, it appears that the future of the Denison South is on hold. But, the
price was viewed by many as dramatically inflated and the attendant terms unpalatable
at best. Concerned Citizens remains convinced public ownership of the entire
Denison property is still viable, however, as does Saugatuck Dunes Coastal Alliance.
While times are hard for obtaining pledges, times are also hard for ex-billionaires.
McClendon has recently developed the odd habit of buying high and selling low. Witness his
Chesapeake shares, and now, according to the Wall Street Journal's Wealth Report, 9,000
bottles of wine from his collection which cost him an estimated $5 million. This despite a
seriously slumping market. If, as the WJS reporter quipped, Mr. McClendon is feeling the
need to liquidate some of his liquid assets, at a likely 30% loss, it's not unimaginable
he might consider parting with some real estate as well.
|
|
|
See Also...
|
|
Be sure to check out the updates, reports, media coverage and more that we have
archived on our Resources &
Reference
page. Here are a few of the more recent entries.
|
|
Last updated January 27, 2010
Comments
regarding website design, errors, and maintenance only please.
|
|
|
|
|
