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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.
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March 30, 2009
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So Many Lawsuits...
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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
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March 3, 2009
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The Denison Property - An Update
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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.
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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.
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South Denison and Lake Michigan from above the Oxbow.
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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 further down the
page, 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.
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May 20, 2008
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Denison Preservationists Completely Dysfunctional
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According to Aubrey McClendon, the Oklahoma billionaire who coldly outbid numerous
state and local organizations seeking to purchase the Denison property for preservation,
those organizations and their members are "completely dysfunctional." McClendon was
quoted in a glowing article in the May issue of Fortune magazine, "Meet Mr. Gas."
The Fortune article went on to proclaim that McClendon had "snatched (the Denison
property) away from local groups that had been trying to preserve it for decades". There
was also praise for some of McClendon's contributions to right-wing political groups,
among them Swift Boat Veterans for Truth, apparently founded exclusively to smear John
Kerry in his 2004 presidential campaign (and quickly revealed to be less than entirely
credible), and Americans United to Preserve Marriage, an organization primarily focused
on illegalizing gay marriage.
In an interview with the Local Observer, David Swan, President of the
Saugatuck Dunes
Coastal Alliance and Co-chair of CCSDSP, said "I read it as a real insult to the
state agencies who have been working for 30 years. I see it as a direct insult to
(State Senator) Patricia Birkholz, who has made her political career out of being a
conservation-minded Republican in Michigan. I see it as a direct insult to (Former
Michigan Governor) William Milliken, who specifically addressed the McClendons in doing
the right thing in allowing us to protect and preserve the dunes."
In the same Observer article Saugatuck Council Member Catherine Simon said "When you say
'snatched up' you make it sound like it was taken away from the people. It was
sold from one private individual to another private individual while a citizen group was
concerned in trying to acquire it."
We would have to agree with Catherine's assessment of the use of the term "snatched",
while reminding her it was McClendon's breathless admirers who used it in this
context.
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May 5, 2008
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Holland BPW - Laketown Township Water Agreement. More Trouble?
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A brief editorial in the Holland Sentinel's May 4th edition revealed that Holland has
agreed to increase the volume of water supplied to Laketown Township by 50% in return
for Laketown's support for a new water treatment plant to be built by Holland in the
township.
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While the city owns a 23 acre parcel in the dunes of the Lake Michigan shore, adjacent to
the North boundary of the park, they have not previously shown a serious interest in
attempting to construct a water treatment facility at that location. They have instead
consistently pursued a location in the Saugatuck Dunes State Park, taking various
approaches to that end. Indeed, it has been suggested that Holland's parcel is not
buildable, due to its status a protected critical dunes, and that Holland purchased it
only to be eventually used as a bargaining chip to attain land within park.
The water agreement has not as yet been ratified by the two municipalities, but the
announcement serves as a heads-up that threats to the park from this quarter are not
dead, but merely dormant. It will be important to remain vigilant in the coming months
and years.
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January 2, 2008
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McClendon Requests Settlement Agreement Be Tabled
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Saugatuck Township Board's Wednesday meeting, once again held at the Saugatuck High
School to accommodate another anticipated standing-room-only crowd and TV cameras, kicked
off with a surprise request by Aubrey McClendon, new owner of the Denison property, to
table his proposed settlement agreement with the township.
In the highly contentious agreement McClendon's Saugatuck LLC offered to drop various
lawsuits pending against the township in return for rolling back, for one year, the current
R-4 zoning of the property to the much less restrictive R-1, 2, and 3B zoning in place prior
to the purchase. Many felt the agreement was sprung on the public with far too short of notice,
just hours prior to the Board's December 5th meeting where it was to be voted on. An alarmed
crowd packed the township hall and forced the board to table consideration of the agreement
and schedule the subsequent
December 19th special session, where action on the proposal was once again tabled amidst
impassioned pleas from a full house, with more packed in the doors from the hall.
Clearly everyone expected another emotional evening of trying to convince the Board to vote
down the agreement. Instead, Saugatuck LLC attorney James Bruinsma read a statement from
McClendon requesting the Board table further action on the agreement. "Saugatuck LLC has
listened to the concerns of the Saugatuck community voiced in recent township meetings and
in the many letters to the press," he read. "Responding to those concerns, we have asked the
township to table its vote on the proposed settlement agreement, for later consideration in
connection with our PUD application." The statement also said Saugatuck LLC would
'stay' the 2007 real estate tax tribunal cases for a period of one year.
Reactions from the crowd ranged from relief to misgivings.
David Swan, president of the Saugatuck Dunes Coastal Alliance, which has worked intensively for
preservation of the Denison property, said "The McClendons are visionaries and great
philanthropists. We are all neighbors in this." Swan expressed his hope the McClendons would
now act in a manner sensitive to the well established goals of the local communities as
expressed in our Tri-Community
Comprehensive Plan (9.8MB) which forms the basis for the long sought R-4 zoning of the
Denison property.
Phil Miller, Co-Chair of Saugatuck Save Our Shoreline,
the organization most actively involved in the attempted purchase and preservation of the
Denison property, was pleased with the news but said "we are involved in a marathon, not a
sprint." He added "If they agree to keep the South (half of the Denison property) completely
undeveloped and keep homes fewer than 80 on the North, we're willing to keep open
minds."
State Representative Patricia Birkholz, who was instrumental in the creation of Saugatuck Dunes
State Park and has worked for years to add the Denison property to the park, presented a less
cheery view. She read a letter from Paul McEnroe, one-third owner of the 80-acre Riverside
Farm adjacent to the Denison land. McEnroe said that Saugatuck LLC has issued ultimatums and
used raw power plays that "are an affront to this community's sensibilities." McEnroe's
letter then addressed the township trustees and asked, did you, as elected officials "listen
to our community's conscience about doing business with a developer who issues ultimatums
to families, threatens lawsuits and repeatedly fails to describe its goals that could very well
transform our community into something ordinary?"
Other views expressed by the public during the comment period included "They are threatening to
sue us, yet they say we should trust them," and "Mr. McClendon is playing a game. I would be
very skeptical of trusting him."
A number of people suggested that McClendon had backed away from a threat he realized he did
not have adequate legal standing to press home and that responding to this "change of heart"
was simply facilitating him. They felt the township should meet Saugatuck LLC head on and vote
to reject the proposed agreement.
Mike O'Brien, ex truck stop developer turned organic meat farmer asked "Why would you come
to an area out of love and threaten lawsuits?" He urged the council not to table but to "vote
the agreement down."
Marcia Perry, President of Laketown Alliance for Neighborly Development, told the board "We will
help you stand up to the deep pockets you are seeing." Kate McPolin and Dave Burdick, members of
the City of Saugatuck and Douglas planning commissions, respectively, offered to donate their
commission stipends toward township attorney fees.
Ultimately, the board voted 5-0 to comply with McClendon's request and table the action.
Township attorney Bultje reminded the board that McClendon's agreement to stay the tax case
doesn't mean he's withdrawing it. "They could come back and challenge 2007 and ’08
assessments in May 2009," he said.
Is this yet another impasse, progress, or a step back?
The board tabling action basically means McClendon may now present a planned unit development
that does not conform with R-4 zoning which the township would review "in good faith", per
their September 2006 agreement with McClendon. Meanwhile, in what has the potential to be a
"divide and conquer" strategy, McClendon has offered to lease the South Denison to the City
of Saugatuck at no cost.
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See Also...
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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.
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Saugatuck Township public meeting - McClendon Consent Agreement
The township board was host to a full house public meeting on
McClendon's rezoning request consent agreement. December 19, 2007
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Saugatuck Dunes Coastal Alliance - Keep the Denison Wild Event at Oval Beach
Wonderful weather, live jazz, and a sweeping view of the Denison.
Hope you were there! July 26, 2007
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Response to McClendon - Development of the Denison
Commercial Record, December 6, 2006 Edition.
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Maximize Michigan's Resources
Commercial Record, November 23, 2006 Edition.
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Swans' Appeal to Keep Working to Save Dune Land
Holland Sentinel, November 19, 2006.
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Last updated May 4, 2009
Comments
regarding website design, errors, and maintenance only please.
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