MUSKEGON, Mich. — A lawsuit filed against the City of Muskegon accused leaders of giving away public property for next to nothing, property the court filing said was required to maintain public access to Muskegon Lake indefinitely.
The lawsuit, filed by West Michigan Dock and Market, a commercial shipping business on Muskegon Lake, came in response to a 2021 development agreement inked between officials and developer Jon Rooks to build a dry boat storage facility alongside the existing Terrace Point Marina.
Lawyers for West Michigan Dock said the transaction should never have occurred.
At issue, a narrow strip of land adjoining the existing Marina and a decades-old deal to give locals access.
The lawsuit referred to the parcel in question as ‘the walkway.’
A 1987 deal between city leaders and the property’s then owner dedicated the land off Terrace Point Drive to the “use and enjoyment by the general public,” an arrangement they said would remain in effect “forever.”
In the lawsuit West Michigan Dock & Market — known locally as Mart Dock — suggested the transfer should never have been allowed because the development agreement in question effectively reversed a permanent easement intended to preserve the land as a public access point.
Documents attached to the August circuit court filing included a December 2021 ‘termination of dedication,’ listed therein as exhibit four.
The document suggested the question of access was “no longer relevant… to the needs of the city or the public.”
The cost listed was one dollar.
The same price listed on a quit claim deed dated December of 2021, which formally transferred the property to Parkland.
The deed was signed by then-Mayor Stephen Gawron and Developer Jon Rooks.
The lawsuit claimed the transfer had occurred in violation of the Michigan Constitution, accusing city leaders of giving away the land for “next to no consideration.”
In doing so, lawyers argued the city had also run afoul of ordinances contained within its own city code: not allowing the public to have a say in its alleged failure to provide “required notice” or hold a hearing prior to the transfer in 2021.
Attorneys for the City of Muskegon fired back in their own brief, viewed Monday by 13 ON YOUR SIDE, accusing the Mart Dock owner of filing the suit only to further his own business interests.
The brief also suggested the business had no standing to sue, based upon a lack of what it called established controversy.
City attorneys added the prospect of future investment tied to the development was expected to offset both the loss of the property itself and its dedication to public access.
The brief asked the court for a summary dismissal.
Several concerns raised with 13 ON YOUR SIDE tied to the lawsuit question the outcome if regulators ultimately denied Rooks’ requests and the project weren’t allowed to move forward.
Some question whether developers would still be entitled to the property under the terms of the 2021 development agreement at issue.
The text of the agreement requires developers apply for various permissions and begin construction within three years of receiving them or deed the land back to the city.
The deal also, however, suggests an alternate project worth at least $2 million would still qualify, leaving the outcome in that scenario unclear.
Mayor Ken Johnson issued a statement clarifying the city’s position in response to a request from 13 ON YOUR SIDE:
Mart Dock President Max McKee also provided a statement:
A hearing is scheduled for November 29.
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