The financial responsibility for rebuilding critical dam infrastructure in Michigan's Midland and Gladwin counties has turned into a legal conflict, with the Heron Cove Association recently filing an appeal to the Michigan Supreme Court. The dispute centers on the legality of the special assessments, totaling around $218 million, levied by the Midland and Gladwin County boards of commissioners and the Four Lakes Task Force to fund dam reconstruction efforts. According to ABC12, the association argues these assessments unjustly burden private property owners and overlook the project's wider public benefit.

The appeal to the state Supreme Court is built on claims that the method used by the authorities failed to properly analyze benefits between public and private stakeholders, further alleging constitutional overreach. Following a statement given to WNEM, the appeal is based on Michigan’s Inland Lake Level Act, which dictates how normal lake levels are managed and the way funding through special assessments must be directly proportional to benefits conferred upon the properties evaluated, not on the cost basis of the reconstruction project. Amidst these proceedings, the construction on the Edenville, Sanford, Secord, and Smallwood dams has been paused as funding is hindered pending the appeal's resolution.

The Heron Cove Association is represented by Foster Swift Law Firm, which announced its appeal application on February 17. The appeal also contests the methodology under which the assessments were applied, suggesting it deviates from Michigan Supreme Court precedents that require market value increases to be the basis for such assessments. As OurMidland quoted the association, "This case is about fairness, accountability, and the rule of law," emphasizing the necessity for lawful and proportionate burden-sharing in financing public infrastructure projects.