News Story

City Officials Threaten Criminal Charges Against Developers In Land Dispute

‘They’re trying to hold us hostage,’ says one

A pair of Kent County property owners have been taken to court by the city of Lowell, which wants to order the forced sale of a portion of their land under eminent domain for use as a utility corridor.

The circumstances are unusual.

The utility line was installed years before developers Todd Schaal and Jerry Zandstra acquired the property, and it was done without a formal easement.

Schaal and Zandstra say they believed, until fairly recently, that the city was prepared to purchase the entire parcel through which the utility line runs. They thought the city welcomed their plans to develop an adjacent property, the site of a vacant former public school, into a residential complex along the Flat River.

In an indication of how hostile relations have become, city officials sought to have Schaal and Zandstra prosecuted for criminal extortion after negotiations broke down and the two presented the city with a bill for use of the utility easement.

“We’re dealing with unreasonable people,” said Schaal, “We’ve had no due process. We’ve followed the rules. They respond by stonewalling. We thought we would be swinging hammers (to construct the Riverview Flats development) by now.”

Schaal said he regards the threat of criminal prosecution as an attempt by the city to obtain greater leverage in negotiations over the condominium project.

He also believes the eminent domain action is part of that power play.

“It’s a clear case of trespass. You can’t use somebody’s property without paying for it. They’re trying to hold us hostage,” Schaal said.

The site is home to a vacant schoolhouse and bus garage that is regarded as one of the last blighted and unused parcels in Lowell’s downtown. It is near a short side street that doubles as a boat ramp for the Flat River.

But disputes about the boat ramp — and whether the developers sought to shut it down — and the property subject to condemnation have delayed the condo development.

Schaal said he regards questions about the boat ramp as spurious.

“We’ve never talked about closing the boat ramp,” he said. “They’re just stirring up hysteria about something that we don’t have any desire or ability to do. It’s an asset to our (condo) project.”

Schaal and Zandstra have also been condemned, on a Facebook page and city council member’s website. The two have been criticized trying to shut off access to the utility corridor property adjacent to the boat launch, property used for various city riverfront events for many years. Schaal said they recently put up a fence around their property, but have continued to open it for city events.

“They’re trying to hold our development up,” Schaal said, “We’re looking for a palatable way out.”

City Manager Mike Burns was out of the office as this story was being prepared. City Attorney Richard Wendt and Lowell Mayor Mike DeVore did not respond to requests for comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.