Lawyers appeal against judge’s ruling that residents must pay for part of Michigan Dam repairs themselves

MIDLAND, MI – Attorneys representing a group of citizens who may be tasked with paying for some of the reconstruction and restoration work at the dam following a catastrophic flood in 2020 have appealed a judge’s decision upholding Gladwin and Midland counties’ Special Levy to Restore and Maintain Lake Levels in the Four Lakes Special Levy District.

The Heron Cove Association has filed a petition with the Michigan State Court of Appeals for review of Midland County District Judge Michael Beale’s June 20 ruling, the task force said in a statement Friday, July 12.

“Such an appeal was expected, however, we believe Judge Beale ruled correctly and there were no errors that would warrant reversing his decision,” the Four Lakes Task Force said in a statement. “We are reviewing HCA’s appeal and will file our response.”

Attorneys for the Heron Cove Association had previously told MLive/The Bay City Times that they planned to appeal Beale’s decision.

Michael D. Homier of Foster Swift, the law firm handling the appeal for the Heron Cove Association, had previously said he respected Beale’s ruling but did not agree with it.

“Private property owners have to pay for the infrastructure that has been broken,” he said. “There is always a government response. In this case, the government’s response was, ‘No, you homeowners pay for it.'”

Related: According to court ruling, local residents could be tasked with financing the reconstruction of the dam in Michigan

The litigation revolves around property taxes that were supposed to be used to rebuild four hydroelectric plants and restore dams damaged by the 2020 Michigan floods.

In March, the Four Lakes Task Force announced that it would suspend restoration work on the Edenville, Sanford, Secord and Smallwood dams after property owners who were supposed to cover the costs of the work through property taxes filed a lawsuit.

The tax assessment to rebuild the dams, formerly owned by bankrupt Boyce Hydro, would impose an undue burden, the Heron Cove Association said in an appeal in February. The company lost the dams through expropriation after the Edenville Dam collapsed in May 2020, causing flooding that caused $200 million in property damage and forced 10,000 people to evacuate.

The task force denied that this challenge would affect its ability to issue bonds to finance the reconstruction project.

About half of the $398 million project is to be financed through special taxes.

Friday’s appeal came after two lawsuits filed by the Heron Cove Association against the Four Lakes Task Force were dismissed in federal court.

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