The ONLY Feasible Path Forward

There has never been a “do nothing" alternative. It is not permitted to leave the dams in the rivers as they are. 

Dams with normal (legal) lake levels that existed before 2020 with a lake level special assessment district is the best path forward.

• A public lake, with property owners surrounding the lake, must have a long-term plan for maintenance, operations and repairs.
• River restoration (i.e., removing the dams) is not feasible. The 2021 study estimated a cost of $125 million to remove the dams and restore the environment. This likely would be significantly higher given construction cost inflation and the amount of new construction that has been completed. It would create the most uncertain environmental, public safety, and legal and governance issues of any alternative - especially without sponsorship to even start the project.

Four Lakes Task Force (FLTF) has a legal and contractual obligation to restore the lakes to their normal (legal) levels in compliance with dam safety standards and environmental regulations. 

The counties approved the computation of costs and the special assessment rolls to finance the work. FLTF continues to seek grants, allocations and donations beyond the $247 million already received to lower the financial burden of the project.

Most of the Four Lakes property owners want to see the lakes restored. It will protect their property values, heal the environment, and restore their quality of life. 

To delay the restoration of these lakes delays the restoration of the quality of life taken away from them in May 2020.

The Appeal

A claim of appeal was filed in Midland Circuit Court challenging the Gladwin and Midland County Boards of Commissioners’ approval of the special assessment rolls required to restore Secord, Smallwood, Wixom and Sanford lakes. The claim of appeal was submitted to the circuit court by the Heron Cove Association which seeks on behalf of its members to set aside the current special assessment rolls.

FLTF respects the right of property owners to appeal. It's outlined in Part 307 of the Natural Resources and Environmental Protection Act that “[the assessment roll] shall be final and conclusive unless appealed in a court within 15 days after county board approval.”

An assessment for a lake level, like the drain code, is different from other types of assessments because it is based on the benefit derived to the property because of the body of water it has access to. Two properties with the same benefit may have very different state equalized values (SEVs) based on the value of the building on the property and/or if the land is developed or not.

The Four Lakes Lake Level Special Assessment methodology considered if a property has limited development or use, and properties were adjusted based on feedback from property owners. Click on the hyperlink or visit the FLTF Document Library to see the report of changes made. Over the last few years, and especially leading up to the public hearing, the process was comprehensive and transparent. 

The timing of when the court determination is made on the appeal has an impact on the project’s schedule and costs. This is why a motion was filed to expedite the administrative appeal. It is not unusual in lake-level projects to have a sense of urgency, as construction bids are obtained to improve the confidence in the project cost and assessment roll, and delay can impact those bid values. This is especially true on this project, given the project that transitioned from rescue to recovery to restoration. We must communicate the impact of delayed financing to our stakeholders, funders, construction crews, and, of course, our community. Right now, construction is still occurring on all dams. The timing of financing affects the timing of the project schedule.

Just the Facts

We received many questions during the webinar and did our best to answer as many as possible. Please review the special assessment FAQ page where many questions are addressed.

There are some questions, no matter how many times they are asked or stated, that the answer won’t change.

IT IS:

• FALSE that the assessments can increase by 10% each year.
• We are not sure where that number came from. Any increase in the computation of costs of the project would need to be approved by the counties.
• The county already approved the future new project costs and 5-year operations and maintenance costs. Costs beyond that need to go through the public hearing process.
• TRUE the lakes are county-owned public lakes.
  • There is no path forward for individual communities to buy these dams and lakes.
  • Properties that allow public access, such as the DNR, marinas or Midland Sanford Park are assessed in the district.
    
  • Approximately 45% of the capital project is funded by state funds.
    
  • The counties and townships participate in the Operations & Maintenance Assessment.

• TRUE there is one project and one lake level special assessment district.
  • A property on one lake will receive the same assessment as a property on any other lake with the same benefit.
• FALSE to say Secord is paying for Wixom.
  
  • There has been no capital assessment to date. The $200 million was granted to FLTF for the Four Lakes Special Assessment District.
    
  • There was no hope of bringing lake levels up on any of these lakes without the county's intervention.
    
  • It is simply a false narrative and a distraction to argue about which lakes get more of the state grant. There has been no proposal from any lake community to suggest they can bring these lakes up on their own.

• TRUE the lakes are for recreation.
  • They are not flood control dams today and they were never designed for flood control.
  • It is not economically feasible to place hydropower on them.