04/26/2007

Homeowner, developer settle lawsuit over kiln dust leaching

Terms of deal aren't disclosed; claims dropped

By CRAIG McCOOL

cmccool@record-eagle.com

BAY HARBOR — A homeowner who sued the resort's developers over environmental problems settled his case.

Terms of Richard Franks' agreement with Bay Harbor Co. and initial resort developing partner CMS Energy are confidential, said Franks' attorney, Steve Weiss.

"I wish I could tell you, because I really don't know what the big secret is, but I can't,” Weiss said. "The settlement will involve everybody dismissing all of their claims. I think the lawsuit served its purpose and I'm glad the parties were willing to sit down and come to agreement.”

A phone message left Wednesday with Robert Carson, the attorney representing Bay Harbor Co., was not immediately returned.

Weiss said the deal is less than 30 days old. Emmet County Circuit Court officials said paperwork requiring a judge's signature had yet to arrive.

The case, filed in the fall of 2005, had been tentatively set for trial in June.

Weiss declined to reveal whether his clients would keep their vacation home or sell it as part of the settlement. County records this week showed Richard Franks and his wife Robin, of Northville, still own their $1 million-plus property on Coastal Ridge Drive.

The area, nestled between a par five hole at the Bay Harbor Golf Club on one side and Little Traverse Bay on the other, became ground zero for environmental problems that plague the lavish resort.

Beneath the golf course is buried cement kiln dust, a remnant of the land's former use a cement plant. In 2005, the kiln dust was found to be leaching caustic water into Lake Michigan.

Local health officials imposed shoreline restrictions and CMS began a federally mandated cleanup, putting up fencing and tearing up the beach in the area. Shoreline restrictions were lifted last August.

The Franks were the only property owners known to file a lawsuit — they alleged they weren't warned of potential environmental hazards when they bought the land — but CMS acknowledged negotiations with other landowners and county records show the company acquired at least two other homes in the same area.

In January 2006, CMS acquired a Coastal Ridge home from Myron Patten. A $0 sale price was recorded, though records also reflect that Patten now has a condo and garage elsewhere in the resort. In December, CMS bought a property on Coastal Ridge for $1.07 million, records show.

A phone message left Wednesday with CMS attorney Peter Lyons was not immediately returned.