Meanwhile, crews work to repair erosion damage

Increased activity appeared to be under way in “Phase 2” of the BayView development in Suttons Bay this week even as the developer fell behind on paying taxes last week to the tune of an additional $261,133.

Summer 2007 taxes payable to Suttons Bay Township and the Village of Suttons Bay were due Sept. 18. The developer owes the township $208,975 and the village $52,158, which brings the total owed in unpaid taxes from 2005 through 2007 to more than $663,000.

Marcus W. Yono of Brighton is the head of Suttons Pointe Development, L.L.C., the company developing BayView, as well as Livingston Building Company, which is overseeing construction. Before last week, the developer already owed more than $400,000 in back taxes for 2005 and 2006.

According to county treasurer Vicki Kilway, a contractor last week delivered foreclosure notices to the developer’s representative at BayView, declaring that tax foreclosure action has been initiated on 42 individual “tax parcels” within the development, located along M-22 just north of M-204 in the Village of Suttons Bay.

As of Sept. 1, the developer owed more than $194,000 in unpaid 2005 taxes and penalties. The properties will become the subject of a foreclosure sale on March 31, 2008, unless all the 2005 taxes and penalties are paid by that time.

Meanwhile, a $311,000 lien against “Phase 2” of the BayView development – known as “Leelanau Hills” – has been discharged.

An excavating and paving contractor, Rieth-Riley of Grawn, filed the lien in July because the contractor was owed money by the developer, Leelanau Hills Development, L.L.C., also headed by Yono.

According to records at the Leelanau County Register of Deeds office in Leland, Rieth-Riley’s $311,000 lien was discharged on Sept. 7. The discharge was recorded last week.

In late August, Leelanau County drain commissioner Steve Christensen sent Yono a warning letter, indicating that soil erosion measures previously installed in the development were failing. The Leelanau Hills project is located up Scott Hill Road north of M-204 and west of M-22.

Christensen told Yono that he was “out of compliance” with state law, and advised him to make progress on his project to “preserve the infrastructure” that had already been installed. The infrastructure along platted but unimproved village streets includes fire hydrants, storm drains and underground piping for sewer service and other utilities.

This week, Rieth-Riley was using heavy equipment to repair erosion damage that had ripped up many of the streets. The contractor was regrading streets and alleys with gravel, and spreading topsoil in some areas in anticipation of applying grass seed to prevent further erosion.

It was not known whether the developer’s plans included paving the streets anytime this year. Yono did not return a phone call from a reporter.

Meanwhile, other subcontractors have maintained construction liens against BayView. Two liens from UBC Building Centers of Grawn total more than $55,000 for materials and labor it provided in the Leelanau Hills development.

In “Phase 1” of the BayView project, a mechanical contractor still has nine liens totaling more than $25,000 against the property and an electrical contractor has five liens totaling more than $15,000.

Several new liens have been filed against the property for unpaid bills including $18,722 from a local wood supplier, and liens totaling more than $7,000 from a paving contractor.

In addition, two notices of lis pendens, or “pending litigation,” have been filed as liens against the property. Overall, liens against the BayView property total several hundred thousand dollars.

BayView is believed to be the largest single development project ongoing in Leelanau County.

When the Village of Suttons Bay approved a final site plan for the project in 2005, “Phase 1” included 54 condo units along M-22. Phases 2 through 4 were to include 475 additional housing units on 231 acres, part of it recently annexed by the village from Suttons Bay Township. In all, some 529 new housing units of various types were envisioned.