The Michigan Court of Appeals ruled Monday in favor of Gladwin and Midland County officials, and their plan to implement a $200 million special assessment district on property owners to repair dams that were destroyed in a 2020 flood. The ruling is the latest in a long legal battle over the assessment.
Heavy rain in 2020 caused the Edenville and Sanford dams to break, causing heavy flooding and catastrophic damage. County officials and the Four Lakes Task Force, who are managing the repair effort, approved a special property assessment of $200 million dollars to partially fund repairs, and restore the lakes back in February 2024.
A group of property owners, known as the Heron Cove Association, claimed the assessment wasn't based on the potential value of the repairs to the citizens and that they were entitled to an independent fact-finding session.
They sued the county boards and the Four Lakes Task Force at the Midland County Court of Appeals, who ruled with the counties.
In an unanimous decision on Monday, the Michigan Court of Appeals ruled the property owners did not provide enough evidence for the claims regarding value.
“The appellants fail to cite any evidence from the record that compares the market value of the assessed properties before and after the improvements,” the ruling said.
The court also said case law does not entitle the HCA to an independent fact-finding session. They cited opportunities for public comment that officials already held starting in 2022, including a public hearing on January 15, 2024.
“Contrary to the assertions made by the appellants, they were not entitled to a process that closely resembles a judicial trial or a comprehensive evidentiary hearing,” the ruling said.
Michael Homier, the lawyer representing the property owners, described the ruling in an email as "disappointing" and left open a possible appeal to the Michigan Supreme Court.
“That decision will be made by our clients when we have the opportunity to discuss it,” Homier said.
A spokesperson for the Four Lakes Task Force, the group who owns the dams, said the ruling, “confirms that FLTF and Gladwin and Midland counties followed the law.”
“It’s time to move forward and regain momentum in bringing the lakes back and restoring the quality of life for our lake communities,” said spokesperson for the Four Lakes Task Force in an email.
The spokeperson said they hope to receive a decision on a similar lawsuit filed by the HCA in federal court.
