The Leelanau Township Board approved a settlement agreement last week with two property owners in the Camp Haven subdivision over the use of Lot 1 in the development of the Timber Shores project.

At a special meeting Tuesday morning, the board approved a settlement between the township and Michael E. Comos and Ellen L .Coon, owners of Lot 2 in the subdivision. Comos and Coon filed suit in October 2007 against the township and NM Investments, developers of the proposed Timber Shores project, to prevent NM from using Lot 1 in Camp Haven as part of the development.

Leelanau supervisor James Neve said in exchange for Comos and Coon dropping the suit against the township and NM Investments, the township would waive a land use application fee for a planned expansion of Comos and Coon’s house on Lot 2.

Neve said the couple plans to build a connected garage with living quarters above. He said the use is allowed by right under township Zoning Ordinance, but a fee is usually paid for the land use application. “It is a win-win for everyone involved,” he said.

In other business at the special meeting, the board:

• Unanimously approved a settlement agreement with property owners Robert and Jeanette Hunt of Northport and the Leelanau Forum to end a suit filed under the Michigan Environmental Protection Act. According to Neve, the Hunts and the forum alleged that discharge of up to 400,000 gallons of wastewater a day into the groundwater and then venting to Northport Creek — a designated trout stream — would pollute and impair the groundwater, Northport Creek, the Old Mill Pond and Northport Bay.

The settlement agreement put the case aside for one year following the start up of the new sewer plant. Discharge will be limited to an average of 70,000 gallons per day. The village and township will be allowed access to the Hunt’s well to establish a baseline water quality, and bimonthly testing will be performed at the expense of the municipalities and shared with the Forum’s environmental consultants to determine the impact of the operation on the groundwater and surface waters.

The Northport Village Council approved the settlement agreement in May.