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Memo in support of Mtn for Entry of Consent Judgment FOR FILING

Memo in support of Mtn for Entry of Consent Judgment FOR FILING

Memo in support of Mtn for Entry of Consent Judgment FOR FILING

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Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 2 <strong>of</strong> 20 Page ID#1755<strong>Entry</strong> <strong>of</strong> <strong>Consent</strong> <strong>Judgment</strong> and F<strong>in</strong>al Order (the <strong>Consent</strong> <strong>Judgment</strong>). The motionshould be granted and the <strong>Consent</strong> <strong>Judgment</strong> entered.The entry <strong>of</strong> a consent judgment is proper when the agreement is “fair,adequate, and reasonable and consistent with the public <strong>in</strong>terest.” 1 As expla<strong>in</strong>edbelow, the proposed consent judgment readily meets this test: it is a good faithcompromise <strong>of</strong> disputed claims; it ends the parties’ dispute; and it provides aframework <strong>for</strong> future land use decisions to be made with respect to Pla<strong>in</strong>tiff’s land.In addition, the <strong>Consent</strong> <strong>Judgment</strong> has received a thorough vett<strong>in</strong>g <strong>in</strong> the publicarena, hav<strong>in</strong>g been the subject <strong>of</strong> a public meet<strong>in</strong>g attended by hundreds <strong>of</strong> citizens.A. Background FactsThe Denison PropertyThe real property at the center <strong>of</strong> this dispute is land <strong>in</strong> Saugatuck Townshipcommonly known as the Denison Property. The Denison family owned severalhundred acres <strong>of</strong> land along the Lake Michigan shore, to the north and south <strong>of</strong> theKalamazoo River channel — a concrete boat<strong>in</strong>g channel created and ma<strong>in</strong>ta<strong>in</strong>ed bythe United States Army Corps <strong>of</strong> Eng<strong>in</strong>eers.Follow<strong>in</strong>g a divorce, the ownership <strong>of</strong> the Denison Property was divided with<strong>in</strong>the family, with an undivided one-half <strong>in</strong>terest eventually owned by the Estate <strong>of</strong>Frankl<strong>in</strong> Denison, and a complementary <strong>in</strong>terest owned by the Gertrude W<strong>in</strong>slowDenison Trust. Pla<strong>in</strong>tiff purchased each one-half <strong>in</strong>terest <strong>in</strong> separate transactions1Williams v. Vukovich, 720 F.2d 909, 922 – 23 (6 th Cir. 1983).2


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 3 <strong>of</strong> 20 Page ID#1756that closed <strong>in</strong> May and June <strong>of</strong> 2006, respectively. 2 Pla<strong>in</strong>tiff also purchasedadditional acreage adjacent to that portion <strong>of</strong> the Denison Property ly<strong>in</strong>g north <strong>of</strong>the Kalamazoo River channel. The Denison Property north <strong>of</strong> the channel and theadjacent parcels are referenced as the Subject Property and are depicted on ExhibitA to the <strong>Consent</strong> <strong>Judgment</strong>. The Subject Property consists <strong>of</strong> 20 separate parcelsencompass<strong>in</strong>g 307 acres, stretch<strong>in</strong>g from the Lake Michigan shore on the west tothe Blue Star Highway on the east.The Broward Industrial Site on the Denison PropertyIn connection with its purchase <strong>of</strong> the Subject Property, Pla<strong>in</strong>tiff was assigned alease and became the landlord <strong>of</strong> an <strong>in</strong>dustrial tenant that occupied a portion <strong>of</strong> theSubject Property. S<strong>in</strong>ce the late-1970s, a company known as Broward Mar<strong>in</strong>e (or itssuccessors) operated a boat build<strong>in</strong>g and repair factory on a parcel along the northbank <strong>of</strong> the Kalamazoo River. In 2009, Pla<strong>in</strong>tiff obta<strong>in</strong>ed possession <strong>of</strong> the <strong>for</strong>merfactory. Although Pla<strong>in</strong>tiff could have cont<strong>in</strong>ued this preexist<strong>in</strong>g <strong>in</strong>dustrial use,Pla<strong>in</strong>tiff <strong>in</strong>stead began preparations <strong>for</strong> a more suitable residential and recreationaluse <strong>of</strong> the land by remov<strong>in</strong>g the factory and remediat<strong>in</strong>g the factory site <strong>in</strong>accordance with a permit with attached specifications from Michigan’s Department<strong>of</strong> Environmental Quality. Pla<strong>in</strong>tiff’s expenditures <strong>in</strong> connection with obta<strong>in</strong><strong>in</strong>gpossession from the tenant and remediat<strong>in</strong>g the site exceed a quarter <strong>of</strong> a million2As part <strong>of</strong> the transaction, a 10-acre parcel on the north side <strong>of</strong> the Kalamazoo Riverwas carved out, and a Denison family member owns a home on that site. Pla<strong>in</strong>tiffsubsequently conveyed all <strong>of</strong> the Denison Property ly<strong>in</strong>g south <strong>of</strong> the river channel to TheLand Conservancy <strong>of</strong> West Michigan.3


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 4 <strong>of</strong> 20 Page ID#1757dollars. 3 The dilapidated condition <strong>of</strong> the build<strong>in</strong>g and surround<strong>in</strong>g acreage isdepicted <strong>in</strong> Exhibit 1.Adoption <strong>of</strong> the R-4 AmendmentOne <strong>of</strong> the pr<strong>in</strong>cipal issues underly<strong>in</strong>g the claims <strong>in</strong> this case is the Township’sOrd<strong>in</strong>ance Number 2006-02, § 19, known as “R– 4 Lakeshore Open Space ZonedDistrict” (the R – 4 Amendment). 4 The R-4 Amendment is a new zon<strong>in</strong>g classificationthat became effective shortly after Pla<strong>in</strong>tiff closed on its purchase from the DenisonEstate. The R-4 Amendment applies to all <strong>of</strong> the parcels that make up the <strong>for</strong>merDenison Property, with the exception <strong>of</strong> one 41-acre parcel that is farthest fromLake Michigan. The affected parcels are identified on Exhibit A as SD-1, -2, -3, and-4 and consist <strong>of</strong> approximately 200 acres <strong>of</strong> land.The R-4 Amendment is a significant change from the prior zon<strong>in</strong>g <strong>for</strong> parcelsSD-1 – 4. Be<strong>for</strong>e the R-4 Amendment, these parcels were <strong>in</strong> zon<strong>in</strong>g districts R-1,R-2, and R-3B. With<strong>in</strong> these districts, a range <strong>of</strong> uses were available as <strong>of</strong> right orby special approval. In contrast, <strong>for</strong> Pla<strong>in</strong>tiff’s property under the R-4 Amendment,the only use as <strong>of</strong> right is to leave the property as greenspace, and the only otheruse that might be allowed is s<strong>in</strong>gle-family homes, with a density <strong>of</strong> 1 house per 5acres. 5 Besides restrict<strong>in</strong>g all hous<strong>in</strong>g to detached, s<strong>in</strong>gle-family houses, the R-43These expenses are memorialized <strong>in</strong> a f<strong>in</strong>al judgment <strong>of</strong> the Allegan County CircuitCourt, S<strong>in</strong>gapore Dunes, L.L.C. v. Palm Beach Polo Hold<strong>in</strong>gs, Inc., Case No. 08 – 43598–CZ.4The R-4 Amendment was previously filed <strong>in</strong> this matter. [Dkt. 28-Ex 8]5After this suit was filed, the R-4 Amendment was modified to allow docks and piersalong the Kalamazoo River.4


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 5 <strong>of</strong> 20 Page ID#1758Amendment also reduced the potential number <strong>of</strong> permitted dwell<strong>in</strong>gs toapproximately one-third <strong>of</strong> the number available under prior zon<strong>in</strong>g. The R-4Amendment elim<strong>in</strong>ated all special approval uses. And the R-4 Amendment createda unique procedure <strong>for</strong> Pla<strong>in</strong>tiff to obta<strong>in</strong> a build<strong>in</strong>g permit. Under the R-4Amendment, the issuance <strong>of</strong> a build<strong>in</strong>g permit <strong>for</strong> any hous<strong>in</strong>g is discretionary withthe Township Plann<strong>in</strong>g Commission, to be considered solely <strong>in</strong> connection with aplanned unit development application.B. Nature <strong>of</strong> the ClaimsThis Court is familiar with the claims <strong>in</strong> this matter <strong>in</strong> connection with earlierbrief<strong>in</strong>g. This lawsuit challenges the adoption, terms, and application <strong>of</strong> the R-4Amendment. Pla<strong>in</strong>tiff contends that Saugatuck Township failed to satisfy theprocedural requirements <strong>of</strong> the Due Process Clause <strong>of</strong> the Fourteenth Amendment<strong>in</strong> connection with the adoption <strong>of</strong> the R-4 Amendment. Pla<strong>in</strong>tiff alleges that theTownship failed to give notice <strong>of</strong> the public hear<strong>in</strong>g on the amendment to the Estateand to occupants <strong>of</strong> the Denison Property, and that it otherwise failed to allow amean<strong>in</strong>gful opportunity <strong>for</strong> Pla<strong>in</strong>tiff to be heard with respect to the R-4 Amendmentafter Pla<strong>in</strong>tiff made such a request.Pla<strong>in</strong>tiff also contends that the R-4 Amendment fails to satisfy the substantiverequirements <strong>of</strong> the Due Process Clause, as well as the requirements <strong>of</strong> the EqualProtection Clause <strong>of</strong> the Fourteenth Amendment. Pla<strong>in</strong>tiff alleges that the R-4Amendment impermissibly imposes restrictions and permitt<strong>in</strong>g requirements on5


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 6 <strong>of</strong> 20 Page ID#1759Pla<strong>in</strong>tiff’s land that are not imposed on neighbor<strong>in</strong>g properties with identicalcharacteristics, and that there is no rational basis <strong>for</strong> this difference.Pla<strong>in</strong>tiff also challenges the conduct <strong>of</strong> Saugatuck Township <strong>in</strong> the aftermath <strong>of</strong>the adoption <strong>of</strong> the R-4 Amendment, contend<strong>in</strong>g that the Township impermissiblysolicited and accepted payments from local environmental activists who demandthat the Township <strong>in</strong>terfere with Pla<strong>in</strong>tiff’s private property rights with respect tothe entirety <strong>of</strong> the Subject Property. Pla<strong>in</strong>tiff alleges that these payments ev<strong>in</strong>ce animpermissible and irreparable bias aga<strong>in</strong>st Pla<strong>in</strong>tiff’s lawful exercise <strong>of</strong> its privateproperty rights.Pla<strong>in</strong>tiff seeks a judgment declar<strong>in</strong>g the R-4 Amendment void ab <strong>in</strong>itio, adeclaration that the operative zon<strong>in</strong>g <strong>of</strong> the property is the classification <strong>in</strong> effectbe<strong>for</strong>e the unlawful adoption <strong>of</strong> the R-4 Amendment, a restra<strong>in</strong>t aga<strong>in</strong>st furthergovernmental action by the Township Board members with respect to any <strong>of</strong> theSubject Property, and statutory attorney fees <strong>in</strong>curred <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g this litigation.C. Procedural History <strong>of</strong> this LitigationPla<strong>in</strong>tiff filed this action on March 2, 2010. All parties have actively litigatedthis matter s<strong>in</strong>ce it was filed. Defendants not only denied the substantive aspects <strong>of</strong>all <strong>of</strong> Pla<strong>in</strong>tiff’s claims, but Defendants also denied that this Court had subjectmatter jurisdiction over this matter. Defendants’ arguments were set <strong>for</strong>th <strong>in</strong> fiveseparate motions to dismiss and/or <strong>for</strong> summary judgment that Defendants filed <strong>in</strong>August 2010, seek<strong>in</strong>g dismissal <strong>of</strong> this action <strong>in</strong> its entirety on a variety <strong>of</strong> differentgrounds.6


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 7 <strong>of</strong> 20 Page ID#1760The Court subsequently determ<strong>in</strong>ed that the challenge to the Court’sjurisdiction would be considered first, with the rema<strong>in</strong><strong>in</strong>g motions held <strong>in</strong> abeyance.After full brief<strong>in</strong>g and a hear<strong>in</strong>g on the jurisdictional challenge, <strong>in</strong> an Op<strong>in</strong>ion andOrder dated March 18, 2011, this Court denied Defendants’ jurisdictional motionand ordered an expedited discovery schedule <strong>for</strong> the completion <strong>of</strong> discovery onCounts I, II, and VII <strong>of</strong> Pla<strong>in</strong>tiff’s compla<strong>in</strong>t.As a consequence <strong>of</strong> the Court’s rul<strong>in</strong>g, the parties have been actively engaged<strong>in</strong> discovery. Pla<strong>in</strong>tiff served additional document requests, <strong>in</strong>terrogatories, anddeposition subpoenas on important third-party witnesses. Defendants likewiseserved additional <strong>in</strong>terrogatories, document requests, and requests <strong>for</strong> admissions.All parties have also worked to schedule the depositions <strong>of</strong> the witnesses <strong>for</strong> eachside, expected to be more than 15 depositions to be completed by August 30, 2011.All told, Defendants have served two sets <strong>of</strong> <strong>in</strong>terrogatories, three sets <strong>of</strong> documentrequests, and three sets <strong>of</strong> requests <strong>for</strong> admission. Pla<strong>in</strong>tiff has served two sets <strong>of</strong><strong>in</strong>terrogatories, two sets <strong>of</strong> document requests, and eight third-party subpoenas.In addition to this discovery, there have been five motions <strong>for</strong> summaryjudgment, three motions to compel, one motion <strong>for</strong> supplementation <strong>of</strong> an order, anamended compla<strong>in</strong>t, a motion to strike, and an appeal <strong>of</strong> the decision on thatmotion.In short, <strong>in</strong> the 17 months that this litigation has been pend<strong>in</strong>g, all parties havezealously advocated their respective positions and fully sought to protect their<strong>in</strong>terests.7


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 8 <strong>of</strong> 20 Page ID#1761D. The Proposed SettlementAgreement and <strong>Consent</strong> <strong>Judgment</strong>Concurrently with the ongo<strong>in</strong>g discovery and brief<strong>in</strong>g, representatives <strong>of</strong> theparties have cont<strong>in</strong>ued their ef<strong>for</strong>ts to resolve their dispute through a negotiatedagreement. The parties negotiated a settlement agreement that resolves all claims<strong>in</strong> this matter and provides <strong>for</strong> entry <strong>of</strong> a <strong>Consent</strong> <strong>Judgment</strong>. The <strong>Consent</strong><strong>Judgment</strong> would allow Pla<strong>in</strong>tiff to propose a site plan <strong>for</strong> a residential andwaterfront community on the Subject Property, centered around re-use <strong>of</strong> the old<strong>in</strong>dustrial site. The key features <strong>of</strong> the potential project are a 66-slip mar<strong>in</strong>a, anadjacent 25-suite hotel, residential dwell<strong>in</strong>gs, a “walker’s only,” environmentallysensitive, 9-hole golf course, and an equestrian center.The parties were assisted <strong>in</strong> this <strong>Consent</strong> <strong>Judgment</strong> by Hank Byma, a landplanner reta<strong>in</strong>ed by Pla<strong>in</strong>tiff with extensive experience regard<strong>in</strong>g Great Lakes landuse. His firm has done a complete analysis <strong>of</strong> the land over a series <strong>of</strong> years,<strong>in</strong>clud<strong>in</strong>g wetlands, topography, soils, access routes, flora and fauna (<strong>in</strong>clud<strong>in</strong>gthreatened species), viewshed, historical resources, and overall site context with<strong>in</strong>the broader community. He provided his analyses to the Township and public, andhe also provided an extensive set <strong>of</strong> responses to key questions regard<strong>in</strong>g his work.A copy <strong>of</strong> those questions and answers is appended as Exhibit 2. The proposed uses<strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong> are <strong>in</strong><strong>for</strong>med by Mr. Byma’s analyses and provide <strong>for</strong> themost <strong>in</strong>tense uses to be made <strong>in</strong> the land that has been under <strong>in</strong>dustrial use <strong>for</strong>decades, thereby allow<strong>in</strong>g the more sensitive acreage to be left as open space. TheTownship also consulted with its outside plann<strong>in</strong>g and zon<strong>in</strong>g expert, Mark Sisson.8


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 9 <strong>of</strong> 20 Page ID#1762The <strong>Consent</strong> <strong>Judgment</strong> does not displace the Township zon<strong>in</strong>g ord<strong>in</strong>ance orrezone any <strong>of</strong> the Subject Property. And the <strong>Consent</strong> <strong>Judgment</strong> does not authorizethe issuance <strong>of</strong> any build<strong>in</strong>g permits or allow any construction activity to commence.Rather, the <strong>Consent</strong> <strong>Judgment</strong> sets <strong>for</strong>th the terms and conditions under whichPla<strong>in</strong>tiff might submit a site plan to the Township Plann<strong>in</strong>g Commission <strong>for</strong> itsreview and approval. 6The Permitted Uses and Special Approval Uses that may be <strong>in</strong>cluded <strong>in</strong> this siteplan are set <strong>for</strong>th with<strong>in</strong> seven zones, del<strong>in</strong>eated A – G, with the specific uses andlimits <strong>for</strong> those uses specified <strong>for</strong> each zone. There is an overall cap <strong>of</strong> 100residential units 7 on the entire 307 acres, and most <strong>of</strong> the acreage, approximately80%, would rema<strong>in</strong> as open space with no build<strong>in</strong>gs or roadways.The Permitted Uses and Special Approval Uses that make up the developmentauthorized by the <strong>Consent</strong> <strong>Judgment</strong> are not a new or wholly different set <strong>of</strong> uses<strong>for</strong> the Subject Property. Instead, the Permitted Uses and Special Approval Usesare generally a subset <strong>of</strong> the Permitted Uses and Special Approval Uses that wouldbe available if Pla<strong>in</strong>tiff were to prevail <strong>in</strong> this litigation, as summarized <strong>in</strong> the tablebelow:6The <strong>Consent</strong> <strong>Judgment</strong> also has no effect on the authority <strong>of</strong> other regulatoryagencies, such as the Michigan Department <strong>of</strong> Environmental Quality, which regulatescritical dune areas on the Subject Property.7The number <strong>in</strong>creases to 115 if no hotel is constructed.9


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 10 <strong>of</strong> 20 Page ID#1763Permitted and SpecialApproval UsesIf Pla<strong>in</strong>tiff Prevails 8Parties’ CompromisePotential number <strong>of</strong>residences265 100S<strong>in</strong>gle-family residences Allowed AllowedDuplexes, Triplexes,QuaduplexesAllowedAllowed, except <strong>in</strong> Zone AGolf Courses Allowed A Par 3, 9-hole, Walker’s OnlyEnvironmentally-Sensitive GolfCourse allowed <strong>in</strong> Zone BDocks, Piers, Wharves,BoathousesAllowed along riverAllowed along riverMar<strong>in</strong>as Allowed A 66-slip Mar<strong>in</strong>a allowed only <strong>in</strong>the Mar<strong>in</strong>a DistrictHorses and HorseStablesAllowedHorses and Equestrian Centerallowed only <strong>in</strong> Zone FHotel Not allowed A 25-Suite Hotel <strong>in</strong> the Mar<strong>in</strong>aDistrictRestaurant/Retail Not allowed Limited Retail/Hospitality toservice residents and guests <strong>in</strong>Mar<strong>in</strong>a DistrictChurches, publicschools, and educational<strong>in</strong>stitutionsPublic Utility Build<strong>in</strong>gsand Service Build<strong>in</strong>gsAllowedAllowedNot allowedNot allowedApartments Allowed Not allowedHospitals Allowed Not allowedNurs<strong>in</strong>g Homes Allowed Not allowed8The Permitted Uses and Special Approval Uses identified <strong>in</strong> this column are takenfrom the provisions <strong>of</strong> the Township zon<strong>in</strong>g ord<strong>in</strong>ance that relate to the R-3B and R-2zon<strong>in</strong>g districts — §§ 40-272, 40-275, 40-332, 40-339, 40-780, and 40-1046. [Dkt. 28-Ex. 8]10


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 11 <strong>of</strong> 20 Page ID#1764Permitted and SpecialApproval UsesM<strong>in</strong>eral Extraction (e.g.,sand m<strong>in</strong><strong>in</strong>g)If Pla<strong>in</strong>tiff Prevails 8AllowedParties’ CompromiseNot allowedGas/Oil Wells Allowed Not allowedThe only uses <strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong> that would not be restored if Pla<strong>in</strong>tiffwere to prevail are the 25-suite hotel and the limited retail/hospitality primarily toservice the residents <strong>of</strong> the hous<strong>in</strong>g and users <strong>of</strong> the hotel and mar<strong>in</strong>a. Otherwise,the Permitted Uses and Special Approval Uses set <strong>for</strong>th <strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong>all would be available if the R-4 Amendment were <strong>in</strong>validated and prior zon<strong>in</strong>grestored.Under the <strong>Consent</strong> <strong>Judgment</strong>, site plan review be<strong>for</strong>e the Plann<strong>in</strong>g Commissionis required <strong>for</strong> all Permitted Uses and Special Approval Uses, except certa<strong>in</strong> s<strong>in</strong>glefamilyresidences. Most <strong>of</strong> the Township’s usual site plan approval standards willapply to site plan applications <strong>for</strong> the Subject Property, except that the <strong>Consent</strong><strong>Judgment</strong> requires that the Township to give written reasons, based on competent,material, and substantial evidence on the record as a whole, <strong>for</strong> deny<strong>in</strong>g orconditionally approv<strong>in</strong>g proposed site plans.Special Approval Uses require approval <strong>of</strong> the Township Plann<strong>in</strong>g Commission.Special Approval Uses specified <strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong> <strong>in</strong>clude communitybuild<strong>in</strong>gs, a 9-hole golf course (walk<strong>in</strong>g only), and horse stables, horse arenas, andpaddocks. The provisions <strong>of</strong> the Township zon<strong>in</strong>g ord<strong>in</strong>ance generally applicable toapplications <strong>for</strong> Special Approval Uses will govern Special Approval Use11


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 12 <strong>of</strong> 20 Page ID#1765applications <strong>for</strong> the Subject Property, except that the Township acknowledges, <strong>in</strong>paragraph 3 <strong>of</strong> the <strong>Consent</strong> <strong>Judgment</strong>, that it has conclusively determ<strong>in</strong>ed that theSpecial Approval Uses specified <strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong> can be designed,constructed, operated, and ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> a manner which satisfies its standards <strong>for</strong>approv<strong>in</strong>g Special Approval Use applications.To accommodate the possible expansion <strong>of</strong> the Saugatuck Dunes State Park,which abuts the north boundary <strong>of</strong> the Subject Property, paragraph 5 <strong>of</strong> the<strong>Consent</strong> <strong>Judgment</strong> permits approximately 80 acres <strong>of</strong> the Subject Property to besold to the State <strong>of</strong> Michigan without reduc<strong>in</strong>g the total number <strong>of</strong> s<strong>in</strong>gle-family ormulti-family residences that may be constructed on the rema<strong>in</strong>der <strong>of</strong> the SubjectProperty. The <strong>Consent</strong> <strong>Judgment</strong> is b<strong>in</strong>d<strong>in</strong>g upon and <strong>in</strong>ures to the benefit <strong>of</strong>Pla<strong>in</strong>tiff the Township, and their respective successors and assigns.E. Public Input on the Proposed <strong>Consent</strong> <strong>Judgment</strong>To allow the public an opportunity to review and comment on the agreement,the proposed settlement and <strong>Consent</strong> <strong>Judgment</strong> were made available to the publicon June 28, 2011, with a public hear<strong>in</strong>g held on July 22, 2011. A press statementannounc<strong>in</strong>g the possible settlement was released, and all settlement documentswere posted <strong>for</strong> public review on the Township’s website.The press statement was effective <strong>in</strong> <strong>in</strong><strong>for</strong>m<strong>in</strong>g the public <strong>of</strong> the proposedagreement. The proposed agreement was extensively covered by the local Saugatucknewspaper, the Commercial Record, as well as by the Allegan County Observer, theHolland Sent<strong>in</strong>el, and the Grand Rapids Press. The proposed settlement was also12


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 13 <strong>of</strong> 20 Page ID#1766widely covered by broadcast media, <strong>in</strong>clud<strong>in</strong>g stories on local television and radiostations WOTV8, WWMT, Fox 17, WZZM, Michigan Public Radio, and WHTC.There have been numerous news articles published <strong>in</strong> area pr<strong>in</strong>t media regard<strong>in</strong>gthe settlement between the date that it was announced and the date <strong>of</strong> the publichear<strong>in</strong>g on July 22, 2011. The settlement agreement has also been the subject <strong>of</strong>ongo<strong>in</strong>g commentary on the op<strong>in</strong>ion pages <strong>of</strong> local publications, garner<strong>in</strong>g morethan a dozen published letters <strong>for</strong> and aga<strong>in</strong>st the proposed agreement. 9 And manyresidents and other <strong>in</strong>terested persons communicated directly with members <strong>of</strong> theTownship Board.The public hear<strong>in</strong>g was held at the largest venue available to the Township, theSaugatuck High School. 10 More than 450 persons attended the meet<strong>in</strong>g, and all whowanted to speak were given an opportunity to make a public comment. Publiccomment lasted nearly four hours. At the close <strong>of</strong> that public hear<strong>in</strong>g, the TownshipBoard openly deliberated and voted on the Settlement Agreement, approv<strong>in</strong>g it by aunanimous vote <strong>of</strong> 5 to 0.9A spreadsheet identify<strong>in</strong>g all <strong>of</strong> the published media is attached as Exhibit 3.10The first attempt to hold the meet<strong>in</strong>g failed because <strong>of</strong> a schedul<strong>in</strong>g conflict at thehigh school. The only space available was the cafeteria, which proved to be too small. Themeet<strong>in</strong>g was later held <strong>in</strong> the gymnasium, which was large enough to accommodate all<strong>in</strong>terested persons.13


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 14 <strong>of</strong> 20 Page ID#1767Law and ArgumentI. The <strong>Consent</strong> <strong>Judgment</strong> is Fair, Adequate, and Reasonable andShould Be Entered by This Court.a. The review <strong>of</strong> a consent judgment is with<strong>in</strong> the discretion <strong>of</strong>the Court.<strong>Consent</strong> judgments have been recognized as hybrid, comb<strong>in</strong><strong>in</strong>g the attributes <strong>of</strong>a contract and a judicial decree. Local No. 93, Intern. Ass’n <strong>of</strong> Firefighters, AFL-CIOC.L.C v. City <strong>of</strong> Cleveland, 478 U.S. 501, 519 (1986). Because <strong>of</strong> this “dualcharacter,” courts typically review a proposed consent judgment be<strong>for</strong>e enter<strong>in</strong>g it toensure that it is not illegal or the product <strong>of</strong> collusion, Kelley v. Thomas Solvent Co.,717 F. Supp. 507, 515 (W.D. Mich. 1989), and that it is “fair, adequate, andreasonable as well as consistent with the public <strong>in</strong>terest.” Williams v. Vukovich, 720F.2d 909, 920 (6th Cir. 1983).The review <strong>of</strong> a consent judgment is committed to the <strong>in</strong><strong>for</strong>med discretion <strong>of</strong> theCourt. Kelley, 717 F. Supp. at 515. In the exercise <strong>of</strong> this discretion, the Courtshould consider the strong policy favor<strong>in</strong>g voluntary settlement <strong>of</strong> litigation. Id. Inaddition, when the government is a party to a consent judgment, “the balanc<strong>in</strong>g <strong>of</strong>compet<strong>in</strong>g <strong>in</strong>terests affected by a proposed consent decree ‘must be left, <strong>in</strong> the first<strong>in</strong>stance, to the discretion <strong>of</strong> the [government representatives].’” The Court alsoshould consider the nature and duration <strong>of</strong> the litigation, and the judgment <strong>of</strong>experienced counsel, when evaluat<strong>in</strong>g the <strong>Consent</strong> <strong>Judgment</strong> <strong>for</strong> entry. Id. Asexpla<strong>in</strong>ed below, the <strong>Consent</strong> <strong>Judgment</strong> pr<strong>of</strong>fered here is neither illegal nor theproduct <strong>of</strong> collusion. It was fully negotiated over the course <strong>of</strong> one year, and is a fair,adequate, and reasonable compromise <strong>of</strong> the parties’ dispute.14


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 15 <strong>of</strong> 20 Page ID#1768b. The <strong>Consent</strong> <strong>Judgment</strong> reflects a compromise <strong>of</strong> disputedclaims.The reference po<strong>in</strong>ts <strong>for</strong> evaluat<strong>in</strong>g the reasonableness <strong>of</strong> the proposed <strong>Consent</strong><strong>Judgment</strong> are the possible outcomes, i.e., the result if Pla<strong>in</strong>tiff w<strong>in</strong>s versus theresult if Pla<strong>in</strong>tiff loses. The proposed <strong>Consent</strong> <strong>Judgment</strong> sets <strong>for</strong>th terms that fallsquarely with<strong>in</strong> these two possibilities.First, the <strong>Consent</strong> <strong>Judgment</strong> avoids a much more <strong>in</strong>tense use <strong>of</strong> the land thatwould be possible if Pla<strong>in</strong>tiff prevailed <strong>in</strong> this case. If Pla<strong>in</strong>tiff were to prevail andthe old zon<strong>in</strong>g restored, the potential number <strong>of</strong> residential dwell<strong>in</strong>g units wouldnearly triple on the 200 acres that make up Parcels SD-1– SD-4. Likewise, ifPla<strong>in</strong>tiff were to prevail, the range <strong>of</strong> uses available to Pla<strong>in</strong>tiff would greatlyexpand. Rather than be<strong>in</strong>g restricted to a waterfront resort project <strong>in</strong> the midst <strong>of</strong> atourist area, Pla<strong>in</strong>tiff could take advantage <strong>of</strong> the additional density to develop aretirement village. Although Pla<strong>in</strong>tiff has never sought to use the land <strong>in</strong> any otherway, the prior zon<strong>in</strong>g opens up a range <strong>of</strong> non-residential uses such as sand m<strong>in</strong><strong>in</strong>gor other m<strong>in</strong>eral extraction. The prior zon<strong>in</strong>g also allows use <strong>of</strong> the land <strong>for</strong> publicutility build<strong>in</strong>gs or to house an educational <strong>in</strong>stitution. The <strong>Consent</strong> <strong>Judgment</strong>ensures that these sorts <strong>of</strong> uses will not be restored by a judgment <strong>of</strong> this Court and<strong>in</strong>stead that the use <strong>of</strong> the Subject Property will be consistent with the resortnature <strong>of</strong> the Saugatuck area.Second, the <strong>Consent</strong> <strong>Judgment</strong> avoids catastrophic f<strong>in</strong>ancial consequences <strong>for</strong>the Township. By settl<strong>in</strong>g now, both parties avoid the ongo<strong>in</strong>g costs <strong>of</strong> litigation, butthe Township also avoids the risk that it might be ordered to pay Pla<strong>in</strong>tiff’s legal15


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 16 <strong>of</strong> 20 Page ID#1769fees as provided by federal statute if Pla<strong>in</strong>tiff prevails on its claims under 42 U.S.C.§ 1983. Pla<strong>in</strong>tiff estimates that those fees would be well over $1 million, and evenmore than that if this matter were to be taken through a full trial on the merits.These fees exceed the Township’s annual operat<strong>in</strong>g budget and would render theTownship <strong>in</strong>solvent without an immediate and extraord<strong>in</strong>ary property tax hike. The<strong>Consent</strong> <strong>Judgment</strong> safeguards the resources <strong>of</strong> the Township by avoid<strong>in</strong>g this riskand also provides <strong>for</strong> a reimbursement to the Township <strong>of</strong> $75,000 <strong>for</strong> pr<strong>of</strong>essionalexpenses <strong>in</strong>curred <strong>in</strong> connection with the <strong>Consent</strong> <strong>Judgment</strong>.Third, the <strong>Consent</strong> <strong>Judgment</strong> allows the Township to reta<strong>in</strong> decision-mak<strong>in</strong>gcontrol over the land. A significant issue <strong>in</strong> this litigation is the claim <strong>of</strong> improperbias <strong>in</strong>troduced by the payment <strong>of</strong> money to the Township by environmentaladvocates. As part <strong>of</strong> its requested relief, Pla<strong>in</strong>tiff seeks to ensure a fair decisionmakerwith respect to all <strong>of</strong> its property hold<strong>in</strong>gs <strong>in</strong> the Township. The <strong>Consent</strong><strong>Judgment</strong> avoids Court <strong>in</strong>volvement <strong>in</strong> land use decisions and leaves thosedecisions <strong>in</strong> the hands <strong>of</strong> the Township Plann<strong>in</strong>g Commission, subject to the terms<strong>of</strong> the <strong>Consent</strong> <strong>Judgment</strong>.c. The Township has the authority to agree to the entry <strong>of</strong> the<strong>Consent</strong> <strong>Judgment</strong>.The terms <strong>of</strong> the <strong>Consent</strong> <strong>Judgment</strong> are with<strong>in</strong> the authority <strong>of</strong> a townshipunder Michigan law to resolve a dispute with a landowner. It is well-establishedthat a township has the authority to sue and to be sued, and <strong>in</strong>herent <strong>in</strong> thisauthority is the power to settle a lawsuit. See Presnell v. Bd <strong>of</strong> Cnty RdCommisionsers <strong>of</strong> Wayne Cty, 306 N.W.2d 516, 519 – 20 (Mich. Ct. App. 1981);16


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 17 <strong>of</strong> 20 Page ID#1770Green Oak Township vs. Munzel, 661 N.W.2d 243, 247 n7 (Mich. App. 2003). Thepower to exercise this authority rests with the township board as the govern<strong>in</strong>gbody under state law. Mich. Comp. Laws § 41.2.The scope <strong>of</strong> the power to settle arises out <strong>of</strong> the claims <strong>in</strong> dispute. Where thereis an honest dispute that presents a real risk <strong>of</strong> an adverse outcome, a township isnot compelled to roll the dice and take a case to its conclusion via expensivelitigation. The Township can <strong>in</strong>stead fashion a compromise that avoids the fullextent <strong>of</strong> the consequences presented by the claims aga<strong>in</strong>st it. See Feily v. Bay ViewCamp Ground Ass'n <strong>of</strong> Methodist Episcopal Church, 210 Mich. 197, 206, 177 N.W.485, 488 (1920) (no requirement that municipality must resolve dispute throughexpensive litigation).When <strong>in</strong>volved <strong>in</strong> a dispute over zon<strong>in</strong>g, a township can enter <strong>in</strong>to a consentjudgment that restores rights that the landowner contends were unlawfully takenaway. And a township can authorize new uses <strong>for</strong> specified locations, which aredeemed to be <strong>in</strong> the nature <strong>of</strong> a variance, without exceed<strong>in</strong>g its power underMichigan law. The authority <strong>of</strong> a township to settle a lawsuit <strong>in</strong> this manner underMichigan law was carefully considered by the Michigan Court <strong>of</strong> Appeals <strong>in</strong> GreenOak Township vs. Munzel, supra. In Green Oak Township, the pla<strong>in</strong>tiff sought todevelop a mobile home park and was denied rezon<strong>in</strong>g. The pla<strong>in</strong>tiff sued, and thematter was resolved through entry <strong>of</strong> a consent judgment that allowed thedevelopment <strong>of</strong> a mobile home park. The consent judgment was challenged asoutside the power <strong>of</strong> the township because the judgment did not follow the17


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 18 <strong>of</strong> 20 Page ID#1771particularized requirements <strong>of</strong> the applicable zon<strong>in</strong>g enabl<strong>in</strong>g statute, <strong>in</strong>clud<strong>in</strong>g theright <strong>of</strong> referendum. The Court <strong>of</strong> Appeals concluded that the consent judgment wasa lawful exercise <strong>of</strong> the township’s power, and that usage rights conferred were <strong>in</strong>the nature <strong>of</strong> a zon<strong>in</strong>g variance, not an amendment <strong>of</strong> the zon<strong>in</strong>g ord<strong>in</strong>ance. See alsoPetoskey Investment Group, L.L.C. vs. County <strong>of</strong> Emmet, Case No. 5:04-cv-0059,United States District Court, Western District <strong>of</strong> Michigan (entry <strong>of</strong> consentjudgment authoriz<strong>in</strong>g a particularized set <strong>of</strong> uses <strong>in</strong> particular locations on thepla<strong>in</strong>tiff’s property to resolve rezon<strong>in</strong>g dispute); Petoskey Investment Group, L.L.C.v. Bear Creek Township, 2004 WL 2754684 (Mich. App. Dec., 2, 2004); Pulte LandCo., L.L.C. v. Alp<strong>in</strong>e Township, 2006 WL 2613450 (Mich. App. Sept. 12, 2006);Inverness Mobile Home Cmty., Ltd. v. Bed<strong>for</strong>d Twp., 687 N.W.2d 869, 874 (Mich. Ct.App. 2004) (“township board may by consent judgment agree to grant a usevariance”).The usage rights set <strong>for</strong>th <strong>in</strong> the <strong>Consent</strong> <strong>Judgment</strong> here are a compromise <strong>of</strong>the consequences that might occur if the Township were to prevail and are with<strong>in</strong>the power <strong>of</strong> the Township Board to authorize.d. The terms <strong>of</strong> the <strong>Consent</strong> <strong>Judgment</strong> provide a reasonable landuse option.The terms <strong>of</strong> this <strong>Consent</strong> <strong>Judgment</strong> set <strong>for</strong>th a reasonable land use option <strong>for</strong>the Subject Property. The proposed uses provide <strong>for</strong> a compact developmentfootpr<strong>in</strong>t, with the most <strong>in</strong>tense activity to be made <strong>in</strong> the area <strong>of</strong> the <strong>for</strong>mer<strong>in</strong>dustrial site, thereby allow<strong>in</strong>g the more sensitive acreage to be left as open space.All uses are consistent with the tourist-based economy <strong>of</strong> the area.18


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 19 <strong>of</strong> 20 Page ID#1772e. The public <strong>in</strong>terest has been fully protected <strong>in</strong> this process.It would be an understatement to say that there are differences <strong>of</strong> op<strong>in</strong>ionregard<strong>in</strong>g how the Subject Property should be used. But <strong>in</strong> evaluat<strong>in</strong>g the propriety<strong>of</strong> the <strong>Consent</strong> <strong>Judgment</strong>, the Court should defer to the reasoned decision <strong>of</strong> theelected <strong>of</strong>ficials entrusted with the task <strong>of</strong> represent<strong>in</strong>g their constituents <strong>in</strong> theTownship. Kelley, supra, 717 F. Supp. at 515. The Township has been fully advisedby a multitude <strong>of</strong> parties regard<strong>in</strong>g the characteristics <strong>of</strong> the land and thesurround<strong>in</strong>g community.This <strong>Consent</strong> <strong>Judgment</strong> was not a hasty or un<strong>in</strong><strong>for</strong>med choice. There have beenyears <strong>of</strong> debate and acrimony over the use <strong>of</strong> this land. There have been publicmeet<strong>in</strong>gs and a lively back and <strong>for</strong>th exchange <strong>in</strong> local newspapers and on websitesdedicated to this issue. There has been no lack <strong>of</strong> study or review or imag<strong>in</strong>ation <strong>in</strong>craft<strong>in</strong>g this compromise. Not all members <strong>of</strong> the public will agree with the result,but they have been heard and their views considered. The parties have conferredand have determ<strong>in</strong>ed that this <strong>Consent</strong> <strong>Judgment</strong> is the preferred option tocont<strong>in</strong>ued litigation and its attendant expense and risk. Pla<strong>in</strong>tiff respectfullyrequests that the Court enter the proposed <strong>Consent</strong> <strong>Judgment</strong>.19


Case 1:10-cv-00210-PLM Doc #135 Filed 07/26/11 Page 20 <strong>of</strong> 20 Page ID#1773Relief RequestedFor the reasons set <strong>for</strong>th above, Pla<strong>in</strong>tiff respectfully requests that this Courtgrant the motion and enter the <strong>Consent</strong> <strong>Judgment</strong> <strong>in</strong> the <strong>for</strong>m attached.Dated: July 26, 2011/s/ James R. Bru<strong>in</strong>smaOne <strong>of</strong> the attorneys <strong>for</strong> S<strong>in</strong>gaporeDunes, L.L.C.Robert L. Nelson (P18239)J. Terrance Dillon (P23404)James R. Bru<strong>in</strong>sma (P48531)MYERS NELSON DILON & SHIERK, PLLC125 Ottawa Ave., N.W., Ste. 270Grand Rapids, MI 49503jbru<strong>in</strong>sma@mnds-pllc.com(616) 233-9640Timothy J. PatenodeDavid F. BensonKATTEN MUCHIN ROSENMAN LLP525 West Monroe St.Chicago, IL 60661-3693timothy.patenode@kattenlaw.comdavid.benson@kattenlaw.com(312) 902-520020

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