By Scott Sullivan
Editor
The battle for the “Wild Heart of Saugatuck” rages into its 18th year with an Allegan County Circuit Court judge narrowing the scope of a developer’s lawsuit against a group trying to block its plans.
Judge Matthew Antkoviak June 26 dismissed all claims made by North Shores of Saugatuck LLC against Saugatuck Dunes Coastal Alliance leaders prior to June 25, 2021 because they fell outside the 3-year statute of limitations, and gave plaintiff 28 days to file an amended complaint detailing more specifically what defendants’ alleged violations since that time have been.
North Shores, which seeks to build a boat basin ringed by dwellings on its land north of the Kalamazoo River channel mouth to Lake Michigan, sued the SDCA and its founding president David Swan June 25 last year for:
- Tortious interference with contract, business relationship or business expectancy;
- Civil conspiracy; and
- Exemplary damages (no sum given).
The Alliance, formed under Swan in 2007 to contest former landowner Aubrey McClendon’s plans to develop land it calls “the Wild Heart of Saugatuck,” called it a SLAPP (Strategic Litigation Against Public Participation) suit and filed to have it dismissed.
North Shore, whose principal is Jeff Padnos, head of Holland-based recycling firm Padnos Inc., bought the late McClendon’s 208.3 acres north of the river for an undisclosed sum in May 2017 and thereafter announced his own scaled-back development intentions.
What North Shores called its conservation plan would preserve 208.3 acres largely protected by Michigan Critical Dunes restrictions, build the already-permitted 18 homes along Lake Michigan and the outer channel, some 50 more homes inland plus a 6.5-acre
boat basin lined by 23 single-family dwellings on 95.67 of its acres, much of them the already long-disturbed site of Singapore.
The proposal won Saugatuck Township preliminary planned unit development and site condominium approvals in 2017, plus a 2018 OK from the Michigan Department of Environmental Quality for boat basin work.
All were contingent on U.S. Army Corps of Engineers approval for hydrology involved with 23,000 cubic yards of sand excavation there. The latter never came.
Meanwhile the SDCA contested each step before the township zoning board of appeals and/or in circuit, Michigan appeals and state supreme courts.
On Feb. 9, 2024 the DEQ’s successor Michigan Environment, Great Lakes and Energy department denied North Shores’ 5-year permit renewal request, citing adverse effect the basin would likely have on public and tribal uses of the river including recreation, fish and wildlife, and aesthetics.
EGLE’s concerns were echoed when the federal Corps at last nixed North Shores’ 2018 approval request three days later. The developer has appealed EGLE’s ruling.
North Shore’s claims alleging Swan funneled SDCA money to township officials in 2006-07, among other misdeeds, fell well outside the statute of limitations, said Antkoviak’s ruling.
The Alliance further defended its advocacy activity as protected by the Noerr-Pennington doctrine upholding First Amendment rights.
“While the Court,” he wrote, “believes this case could reasonably be dismissed in its entirety, (it) finds the equities favor allowing the plaintiff one final opportunity to amend its complaint.”
He directed North Shores to this time “state with specificity “1) the date on which the (alleged false) statement or statements of the defendants were made;
2) identify specifically which statement or statements of the defendants constitute perjured testimony or otherwise implicate the “sham” exception to the Noerr-Pennington doctrine; and
3) state with specificity how the aforementioned statements of the defendants resulted in the harm alleged in the subject lawsuit.”
“Both the facts and the law are on the side of the Coastal Alliance,” its board chair Bobbie Gaunt said. “We will continue to vigorously defend the Alliance and David Swan.”
“North Shores cannot comment on pending litigation,” spokesman Scott Bosgraaf said.
