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Published on March 05, 2024
Michigan Dam Restoration Projects Face Delay Amid Homeowner Association Legal ChallengeSource: Wikipedia/Notorious4life (talk) (Uploads), CC0, via Wikimedia Commons

The restoration of the Secord, Smallwood, Edenville, and Sanford dams in Michigan has hit a significant snag as the Four Lakes Task Force (FLTF) announces a halt to their construction efforts. The stoppage, slated to begin at various points throughout the coming months, is due to a legal challenge from a local homeowner's association, which has stalled the project's financial and operational plans, according to a report from Mid-Michigan NOW. These delays could potentially cause a significant increase in the amount of funds required to complete the restoration projects.

President of the FLTF, David Kepler, spoke to the gravity of the situation in a statement to Mid-Michigan NOW, highlighting the potential for the delay to impact the FLTF's schedule and budget. "This system needs to have its lakes restored back," Kepler said. "The alternative to do nothing is actually not an alternative." The homeowner's association at the heart of the appeal, Heron Cove Association, filed the claim on February 24, requesting that the special assessments for lake level maintenance be set aside. This action has thrown the financing into uncertainty, as the FLTF had hoped to secure funds by issuing bonds in June, as reported by WNEM.

Financial implications are severe, with FLTF President Kepler outlining to ABC12 that reaching a conclusion by September could cost the district between $1.5 million to $3 million. Moreover, should the Task Force deplete current resources from the state, it could leave the dam projects "in an incomplete and unsafe state." This financial strain comes amid concerns voiced by local residents, who feel they are being unfairly burdened with the responsibility and costs of rebuilding and maintaining the dams, which are a focal point of the community.

Emotions run high among dwelling owners by the lakesides, who face the possibility of up to $3,000 in additional annual costs on their homes if the special assessments are implemented, as noted by WNEM. Despite these concerns, supporters of the project argue that the consequences of not proceeding with the restoration work are dire, predicting plummeting property values and widespread ramifications for the economy and local schools. "A long-term river versus a lake simply means a fantastic drop in property values," Tim Holsworth, president of the Sanford Lakes Association, told ABC12. "The schools will suffer. There is no one who won't suffer," he added.

Project timelines, as discussed with Mid-Michigan NOW, indicate suspensions at different junctures for each dam. Secord Dam would stall in June after the completion of its auxiliary spillway. The Smallwood Dam is expected to pause operations in August, and the Sanford Dam is due to follow in December. The start of the final construction phase for the Edenville Dam, initially set for May, is now contingent on financing. By the end of 2024, assuming no additional funding is secured, the FLTF plans to have expended $162 million out of the $180 million in state funding for this large-scale restoration effort.

Despite the current fiscal constraints and legal entanglements, Kepler remains optimistic about a resolution that will allow for proper financing to resume. He told WNEM, "We hope to have clarity before September on funding for the capital improvements and operations and maintenance of the dams. With that, we can move forward. Without it, we are on hold for the foreseeable future on if and when the lakes will be restored."

Detroit-Real Estate & Development