Midland & Gladwin, MI February 15, 2025– The Heron Cove Association (HCA), a coalition of property owners within the Four Lakes Special Assessment District, has filed an application for leave to appeal to the Michigan Supreme Court, challenging the legality of an unprecedented special assessment levied by the Midland and Gladwin County Boards of Commissioners and the Four Lakes Task Force. The assessments, amounting to an estimated $217.7 million, were imposed to fund the reconstruction of the Four Lakes dams following the catastrophic failures of the Edenville and Sanford Dams in May 2020.
HCA argues that these assessments violate longstanding Michigan law, including principles established in Dixon Road Group v. City of Novi, 426 Mich 390 (1986), which mandate that special assessments must be proportionate to the benefits conferred upon the properties assessed. In its appeal, HCA asserts that the assessments unfairly burden private property owners while failing to account for the substantial public benefits derived from the restoration of the lakes and dams.
Statutory and Legal Basis for the Appeal
HCA’s appeal is grounded in Michigan’s Inland Lake Level Act (MCL 324.30701 et seq.), which governs the establishment and maintenance of normal lake levels and allows for special assessments to fund such projects. However, the statute requires that assessments be based on benefits conferred to private property owners—not simply the cost of the project.
HCA contends that:
- The Midland and Gladwin County Boards of Commissioners, along with the Four Lakes Task Force, failed to conduct a proper analysis of the proportion of benefits accruing to the public versus private property owners.
- The assessments were determined based on cost rather than the increase in market value to assessed properties, contradicting Michigan Supreme Court precedent.
- The methodology used to impose assessments, based on “derived benefit factors,” ignores constitutional limitations on taxation and special assessments, resulting in an unlawful taking of property without due process or just compensation.
- The affected property owners were denied adequate procedural due process, as the public hearing process failed to allow for meaningful challenges or fact-finding regarding proportionality and benefit.
A Precedent-Setting Case for Michigan’s Infrastructure
The outcome of this appeal has significant implications beyond the Four Lakes region. Michigan faces a growing crisis of aging infrastructure, with many dams requiring repairs or reconstruction. If the lower courts’ rulings stand, they will set a dangerous precedent that could allow municipalities to impose similarly disproportionate special assessments on private property owners to fund infrastructure benefiting the broader public.
“This case is about fairness, accountability, and the rule of law,” said a representative from the Heron Cove Association. “The burden of rebuilding critical infrastructure should not be arbitrarily placed on a select group of private property owners while the broader public, who will benefit tremendously, is not required to contribute proportionally. Our appeal seeks to ensure that these assessments comply with Michigan law and constitutional protections.”
HCA is urging the Michigan Supreme Court to grant leave to appeal and to establish clear guidelines that protect property owners from unlawful assessments while ensuring that public infrastructure projects are funded in a just and equitable manner.
Foster Swift Law firm
Representing Heron Cove Association
