Property owners in a special assignment district (SAD) on North Lake Leelanau have filed suit against Leland Township.
More than 20 plaintiffs, property owners in the SAD, have filed documents seeking a restraining order to prevent the sale of bonds for the project which has been in the works since 2009.
According to the lawsuit, the special assessment district was formed to address the failure of private sewer systems along the northeast shore of North Lake Leelanau.
In December 2013, signatures were collected from property owners, with the estimated project cost of $363,500. Each of 34 property owners would pay $10,700 per lot, plus an $11,000 hook-up fee.
Fast forward to November 2017, when a first public hearing was held. The cost of the project grew by more than $264,000 to $628,000, putting the cost per property owner at $18,470.
Four SAD owners expressed opposition to the project.
Then the project stalled for another six years to June 2023, when cost estimates jumped to $1,000,000, further increasing the property assessments to $29,412 with a $23,530 connection fee.
Most recently, in November 2024, the plaintiffs claim that the township board met and OK’d a resolution establishing the assessment district without notice.
The project estimate stood at $1,202,532 or $37,579 per parcel, plus a connection fee of $12,000 to $15,000.
By the end of 2024, the cost had risen to $1,280,000 or $40,000 per parcel.
Twelve property owners expressed opposition at that time and several are pursuing the case with the Michigan Tax Tribunal.
“The township is acting recklessly in pursuing the project despite opposition from a significant number of burdened property owners and questions about the validity of the township,” the lawsuit states.
Supervisor Clint Mitchell would not comment on the pending litigation. However, in his supervisor’s report at Monday’s monthly board meeting, he reported the Circuit Court hearing regarding Sunset Shores resulted in a temporary injunction, presenting the township from moving forward on the project until a ruling on either the Tax Tribunal cases or the underlying lawsuit.
“Our attorneys expect to file a summary disposition to expedite the latter; the tribunal appeals have yet to be scheduled,” Mitchell said.”
If this process stretches on more than a couple of months, we’ll likely need to adjust our budget to cover some costs that would have otherwise been paid for with the bond.”
