Elmwood Township at a special meeting Monday night did not approve a site plan for an electrical substation recommended by its zoning administrator.

Instead, board members voted to spend up to $10,000 to hire more experts to determine if Wolverine Power Supply Cooperative can be stopped from building the substation at a proposed location off M-72 under present township zoning.

The move further delays Wolverine’s construction, said executive vice president Craig Borr — and may result in the non-profit company taking a less cooperative approach in future dealings with Elmwood Township.

Borr, speaking Tuesday, said Wolverine officials would review options such as beginning construction immediately, taking its case to the Michigan Public Service, or filing a lawsuit in Circuit Court.

What about waiting for township-hired experts to report their findings back to the board?

“The option of doing nothing is always an option, but is not one I think is high on our list,” said Borr. “I think doing nothing is certainly unacceptable.”

Township supervisor Derith Smith said the possibility of approving what has been dubbed an “optional site plan” remains on the table, as does attempting to enforce a zoning amendment approved after the township Zoning Board of Appeals ruled the substation was allowed.

“I would say both options are still out there. We didn’t eliminate either option,” she said.

Smith said she was unhappy that Elmwood Township has been saddled with the responsibility of determining if the substation, planned for 8.7 acres of farmland under an existing windmill, is best suited for the proposed site or even needed at all.

“I’ve advocated for a regional discussion, because it’s a regional issue,” said Smith.

Building the substation in a location clearly visible from M-72 could hurt tourism in Leelanau County, she added. “If we suddenly look like everybody else, why would they come here?” she asked.

The decision was approved on a 5-1 vote, with clerk Connie Preston opposed. Preston said paying up to $10,000 more on the substation issue will take away funding from more needed township services, including the Elmwood Township Fire Department. The Township Board has begun discussing again seeking a property tax increase to pay for fire protection after two millages were defeated last year. The department is partially paid through the General Fund, which Preston said as of May 13 had been tapped for $19,157 on the substation. Bills from township attorney Jim Young to attend special meetings and up to $4,000 in research to determine the chances for Elmwood enforcing the new ordinance were not included.

The bills will go higher after Young hires experts to study Wolverine’s assertion that the substation is needed to provide reliable power to the Grand Traverse area including Leelanau County. Their reports may not become part of the public record because they will be filtered through Young and theoretically protected from disclosure through attorney-client privilege.

“I ask how can we justify going out for a fire millage when we’re spending money like this?” Preston asked.

The Township Board at a special meeting held May 19 appeared on the verge of approving what was dubbed a “voluntary” site plan — the zoning ordinance did not require the site plan process for substations until changed recently — worked out between Wolverine officials and township zoning administrator Chris Grobbel. At the time, board members considered authorizing Grobbel to approve the plan with upgrades, or negotiate an improved site plan and bring it back to the board.

Board members chose the latter.

Grobbel said he worked “over several” weeks with Wolverine representatives, meeting onsite and in the township hall. He recommended the finished product to board members.

“It tightened up. It got more specific,” said Grobbel.

Wolverine first submitted plans to build the substation in Elmwood Township last August, after abandoning a smaller site in Garfield Township that drew criticism from neighbors. Wolverine officials said the Elmwood location provided space to include Consumers Power in a project that had been partnered between Traverse City Light & Power and Cherryland Electric Cooperative, but critics said the power providers sought out weaknesses in the Elmwood zoning ordinance.

Elmwood zoning allowed electrical substations in all districts. Neighbors learned of the project in November, and sought a township ZBA opinion. The ZBA interpreted the ordinance in the same manner as the previous zoning administrator and attorney Young.

Mason and Lisa Argue, who are developing a neighboring subdivision, and Josephine Bargeil, who lives adjacent to the proposed sight, lost their appeal of the ZBA ruling in Circuit Court.

However, in the meantime the township changed its zoning ordinance. Although township officials stated at public meetings that the new ordinance was not enforceable on the substation project, the Argues filed a zoning complaint with the township after losing their appeals.

The Township Board has not decided whether to enforce the ordinance amendment to stop the substation. Attorney Young in his research determined that the amendment may not hold up to a court challenge because it’s “exclusionary,” allowing such substations only in a small C-4 zoning district off Carter Road near the Leelanau Trail.

The substation is planned on land owned by Trustee Terry Lautner, who abstained from the discussion and vote.