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July 3, 2005Tondu: Money made the decisionCorporation charges city with violating rightsByRecord-Eagle staff writer MANISTEE - City officials retaliated against Tondu Corporation after they learned a power plant proposal was not the tax windfall they expected, attorneys for the corporation alleged. Tondu attorney Roger Myers filed a brief last week over Manistee's rejection of a 425-megawatt coal-fired power plant proposed for the shore of Manistee Lake. Tondu wants $59.5 million in damages in the federal court case. Myers said an earlier damages number - $810 million - was revised to account for the present value of less than half of projected profits over 30 years. City officials at first courted the power plant but then balked when they learned Tondu partnered with public utilities, possibly making the project tax-exempt, Myers wrote in a brief in response to a motion filed by Manistee attorneys seeking to have the case dismissed. Manistee "intentionally used the permitting process as a 'hammer' to extort money from" Tondu, Myers wrote. Myers said the city violated Tondu's constitutional rights by basing its decision on money rather than on factors planning commissioners are legally bound to consider. Michael Bogren, attorney for Manistee, said the planning commission's rejection of Tondu's permit was proper and based on 13 factors it used to weigh whether to approve a special use permit, including the financial benefit the project posed. "It's completely rational to take into account whether you're going to lose money on the outcome of a particular project," Bogren said. Myers said Tondu offered to pay millions to the city annually in lieu of taxes, but Manistee rejected the offer. Myers also argues that the city bowed to behind-the-scenes pressure from opponents. In one example, a high-ranking Little River Band of Ottawa Indians member called Tondu representatives "snake oil salesmen" in an e-mail to a city official, saying the official was "cowardly, irresponsible and ... unprofessional" because he took a neutral position on the proposal, according to Myers' brief. "Let's not kid ourselves: The tribe is a very powerful influence; I mean, you're not dealing with Joe Schmo off the street," Myers said. Bogren said fervent opposition to the project showed the community was involved in the decision-making process. "The whole point of the process is to not only allow but encourage citizen participation, and that's what happened here," Bogren said. See Related Stories: Manistee woes aside, Tondu eyes Indiana facility - June 26, 2005 Court urged to toss company's suit - June 26, 2005 Manistee vs. Tondu: Heading to federal court - February 25, 2005 Groups may stay in Tondu lawsuit - January 27, 2005 Tondu charges violation, bias in power plant denial - December 30, 2004 Tondu demands $810M - December 17, 2004 Tondu sues for $100M - July 16, 2004 Council wants Tondu to pay for plant review - July 8, 2004 Coal plant shot down - April 16, 2004 Planners set to pan plant - April 3, 2004 See Related Editorials: Tondu Corp. was always out for No. 1 - December 29, 2004 Tondu shows its colors by ducking bill, suing - July 21, 2004 Diligent homework exposes plant flaws - April 20, 2004
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