Many of the issues at the heart of a recommendation made last week by the state Bureau of Construction Codes to shut down the Leelanau County Building Inspections department relate to problems at the troubled BayView condominium development in the Village of Suttons Bay.

The former head of the inspections department, Robert VanDyke, was fired days after he rescinded certificates of occupancy at BayView based on an independent engineer’s report that furnace and water heater exhaust vents were improperly installed in the development and presented potential “life safety” concerns.

Our goal is to ensure that BayView
remains a safe, upscale development,
regardless of whether any deficiencies
of a local subcontractor may have been
inappropriately approved by county inspectors.
– Marcus Yono

The day after he fired VanDyke, county administrator David W. Gill reinstated the certificates of occupancy for BayView based on a new engineering report prepared by a firm hired by the BayView developer. The report indicated that there were no code violations or safety concerns at BayView.

BayView is being developed by Suttons Pointe Development L.L.C. and Livingston Building Company, both headed by Marcus Yono of Brighton. The water heaters and furnaces were installed by Suttons Bay Heating, headed by Fred Cook of Suttons Bay.

Following an inspection they conducted on Nov. 1, 2007, at BayView, the chief of the state mechanical code division and the senior state mechanical inspector reported that water heater and furnace exhaust terminations at BayView were in violation of the Michigan Mechanical Code and manufacturer’s installation instructions. Their report also indicated that sprinkler heads used for fire suppression in mechanical rooms had been improperly installed.

Speaking through his attorney, Marcus Yono responded to a request from the Enterprise for comment on the state’s report:

“We are surprised to see those items identified as deficient in the state report,” Yono is quoted as saying. “We hired a local subcontractor, Suttons Bay Heating & Cooling on their alleged expertise in installing these systems, and Suttons Bay Heating & Cooling assured us that all aspects of the mechanical systems were installed in compliance with all codes and manufacturers’ specifications. The installation of these systems was then approved by the county inspectors.

“As all builders do,” Yono continued, “we rely on the expertise of our subcontractors to understand and comply with all local and state codes and manufacturers’ specifications and the inspection process of the local government officials to verify such compliance. If that did not occur, we will demand that Suttons Bay Heating & Cooling correct their installation deficiencies. Our goal is to ensure that BayView remains a safe, upscale development, regardless of whether any deficiencies of a local subcontractor may have been inappropriately approved by county inspectors.”

Cook told the Enterprise on Monday that when he began work on the BayView project in August 2004, he installed one type of heating system in the condos only to be ordered by county inspectors to remove them and install another type of system in order to meet code. Cook said he lost more than $60,000 as a result of the changes the Inspections Department ordered him to make.

“The way those (BayView) buildings are designed, there’s only one way to install those systems,” Cook said. “I don’t think there’s any fire, health or safety issues there,” he added, “but there’s no way you can install those systems according to the manufacturer’s installation instructions or the mechanical code. I don’t think the developer had an engineer involved in designing those buildings at all,” Cook said.

Cook said that he had recently discharged about $25,000 in construction liens he’d placed against BayView, because he had finally been paid by the developer – but he was still expecting to go bankrupt.

“I’m probably even going to lose my house,” Cook said. “I suppose somebody could sue me, but I don’t have any more to give up. I’m sunk.”

The developer of BayView, meanwhile, is currently facing nine lawsuits in Circuit Court.

The latest suit, filed Dec. 12, is from National City bank, which alleges that Yono and his partner Jeffrey Roth are in default on a $625,000 loan.

Three of the lawsuits against the developer are from people who want their deposits back on BayView units they no longer want to buy. One is a potential “class action” suit from a number of condo owners concerned that units they bought for “single family” purposes are now being marketed for “timeshare” or fractional ownership sales.

Three of the lawsuits are from contractors seeking payment for work they say they completed for the developer. And one lawsuit is from a furniture company that claims the developer took delivery of furniture for a model unit then sold the unit as a “furnished” unit without paying for the furniture.

In addition, the developer owes hundreds of thousands of dollars in back taxes on BayView properties and faces a tax foreclosure sale in March.