Top 10 Local News Stories of 2008

January 04, 2009 09:59 am

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Editors note: Northern Michigan witnessed its share of upheaval in 2008, a microcosm of the volatility that raged throughout the nation. We saw it all, from corporate crime to economic despair to longtime elected officials swept from office by voters hungering for change. We witnessed tragedy, triumph and a bit of celebrity. Following are the topics that comprise the Top 10 local news stories of 2008, as selected by the Record-Eagle.

1. Meijer's campaign finance violations become public

It's not every day one of Michigan's proudest corporate citizens admits it attempted to secretly and illegally overthrow a township government.

Meijer Inc., while facing a criminal investigation over revelations forced from it in a civil lawsuit, acknowledged to Michigan's Secretary of State that it violated campaign finance laws when it spent more than $100,000 to influence Acme Township elections in 2005 and 2007. Documents filed with the state confirmed Meijer paid a public relations firm to tamper in elections and fund and operate citizen front groups formed by a member of one of its development partners, Village at Grand Traverse LLC.

New revelations, ramifications and continued legal wrangling pushed Meijer to the head of the 2008 Top 10 news stories list.

Meijer wanted to build a superstore near Lautner Road and M-72 as either a standalone project or as part of the adjacent Village development. It was unwilling to accept conditions imposed by the township board and sued on multiple occasions.

Acme Township Treasurer Bill Boltres returned the favor in 2007, and in a lawsuit alleged Meijer intentionally harmed him through a frivolous suit the company filed in 2005. Meijer representatives threatened to seek millions of dollars in damages from Boltres and other township officials, including planning commissioner Robert Carstens.

Meijer settled a suit with Boltres prior to Christmas 2007, just after a mediation panel recommended the Kent County-based retailer pay him $3 million in damages.

Grand Traverse County Prosecutor Alan Schneider opened a criminal investigation of Meijer to start 2008.

Meijer, which has given hundreds of thousands of dollars to state politicians, successfully quashed Schneider's investigation in court. Enforcement shifted to Secretary of State Terri Lynn Land, who levied a record $190,000 fine against Meijer, though her action apparently thwarted a criminal probe at the state level. Land has received thousands of dollars in campaign contributions from Meijer in recent years.

Schneider appealed the dismissal of his criminal complaint and Boltres subsequently filed suit against the Village at Grand Traverse. Carstens then sued Meijer, the Village and their former attorneys, Dickinson Wright PLLC.

Over the last six months, Meijer, the Village, and Dickinson Wright alternately tried to disqualify the local judge and filed emergency appeals with the state Supreme Court in attempts to derail the civil suits. Those attempts thus far have failed, and participants in Meijer's Acme Township dealings, including Meijer's top officials, are expected to begin giving testimony under oath in 2009.

2. Economy takes toll on northern Michigan residents

An ongoing economic downturn officially became a recession this year, and Michigan emerged as one of the nation's most embattled states.

The state had the highest unemployment rate in the country in November, at 9.6 percent, and was among the 10 states with the highest home foreclosure rates.

The Detroit automakers, for years one of Michigan's largest employers, asked Congress for emergency loans to avoid bankruptcy.

The impact of the struggling car industry rippled to northern Michigan this year with the announced closures of Dura Automotive in Mancelona and Tower Automotive in Traverse City.

And local people faced challenges not experienced for years.

Loans were harder to acquire. Workers lost jobs and incomes. The Michigan Department of Human Services assigned caseworkers to record numbers of families.

More people sought help from local food banks than a year ago, with at least one -- the Father Fred Foundation -- seeing double-digit percentage increases in demand.

Gas prices shot over $4 a gallon this summer, causing ridership surges for the Bay Area Transportation Authority and forcing some families to turn to other methods of getting around.

Winter heat bills are expected to be higher than last year for DTE Energy customers, in part because the company purchased its natural gas during the summer months with the assumption that prices would continue to rise.

The Record-Eagle this year profiled the hardships faced by many in our community, including declining tourism in the small Benzie County village of Honor, a homeless family living in a tent in Rapid City and a single mother of six whose older children worked to support the family.

3. Longtime City Manager Richard Lewis leaves

Leadership changed in Traverse City.

R. Ben Bifoss took the reins as city manager after fixture Richard Lewis left for another job.

Lewis, 55, announced his resignation in July after 17 years at the top administrative spot. He left in September and went to work for international engineering firm CH2M HILL in Atlanta.

Bifoss, 55, took over in November with unanimous support from the city commission.

But the hiring process wasn't without hiccups.

City commissioners interviewed five candidates out of nearly 70 applications from people all over the country. They narrowed that to three finalists for a second round of interviews.

City Commissioner Jim Carruthers contended the hiring process was rushed and wanted to bring in more applicants for interviews, but other commissioners were satisfied with their course of action.

Three finalists dropped to two when Tom Menzel, former executive director of the National Cherry Festival, withdrew his application after the second interview. That left Bifoss, a former city manager of Manistee, and Bob Schaumleffel Jr., a former manager of Creedmoor, N.C.

Menzel's bid for the job was complicated because he said city officials wouldn't give him a multi-year contract, and when city Commissioner Deni Scrudato repeated a disparaging remark about Menzel's father. Menzel said he was hurt by the comment about his deceased father, but it wasn't the deciding factor in him withdrawing his application. Scrudato gave an emotional public apology during a city commission meeting.

Bifoss negotiated a salary of $90,000, but that could jump to $98,000 in July after city commissioners revisit the terms of his agreement. Lewis made $98,000.

Bifoss was a project manager for Abonmarche Consultants in Manistee. He served as Manistee's city manager from 1987 until 2001. He also worked for West Michigan Dock and Market Corporation and held administrative positions in Montevideo, Minn., Anaconda-Deer Lodge County in Montana and Grand Haven.

4. Local elections spark changes

Voters in November changed the makeup of several local governments by electing newcomers to some county boards.

The local outcome mirrors changes brought statewide and nationally, as Democrats gained seats in the state House and U.S. Sen. Barack Obama, D-Ill., became the country's first black president-elect.

Ross Richardson, who will represent Garfield Township and eastern Traverse City on the Grand Traverse County board, became the first Democrat elected to the office in two decades when he defeated Republican Dave Barr.

Richardson joins newcomers Beth Friend and Mike Stepka on the nine-member county board.

Republican Wayne Schmidt, who had held Richardson's seat, beat Democrat Roman Grucz and Libertarian Dan McDougall for the 104th District state House seat that includes Grand Traverse and Kalkaska counties.

Schmidt replaces term-limited Rep. Howard Walker, R-Traverse City.

And Dan Scripps became the first Democrat in years to win the heavily Republican 101st District, representing Benzie, Leelanau, Manistee and Mason counties. He beat Republican Ray Franz in the general election.

Three newcomers were elected to the seven-member board in Leelanau County after two incumbents did not seek re-election and a third lost in the August primary race.

Democrat David Marshall beat Republican Dan Semple in District 6, representing Cleveland, Glen Arbor and Empire townships, as well as South Manitou Island.

The two other new board members are both Republicans. James Schaub Sr., of District 2, bested Democrat Victor Walter for the area that includes parts of Elmwood and Bingham townships. And Dick Schmuckal beat Democrat Jackie Freeman in District 3 that includes portions of Bingham and Suttons Bay townships.

5. Judge paid to stop whistleblower suit and conceal relationship

Grand Traverse County family court Judge David Stowe spent $69,000 in taxpayer money to rid himself of a whistleblower who exposed his relationship with a court employee.

The settlement and Stowe's personal relationship with court employee Cynthia Curry were revealed in 2008. A state investigation of Stowe followed.

The state's Judicial Tenure Commission took "corrective action" against Stowe, 57, but stopped short of filing a formal complaint that could have resulted in significant discipline.

"Occasionally, a judge's conduct falls short of the ideal judicial officer, yet does not warrant commencement of formal discipline proceedings," JTC Executive Director Paul Fischer wrote. "In this matter, the Commission has taken an appropriate corrective action."

Stowe hired Curry in 2002 as a juvenile probation officer, and they allegedly began a personal relationship by year's end. Stowe also presided over Cynthia and Ronald Curry's divorce and ongoing custody issues from 2001 until 2006.

Curry went to work for Holy Cross Children Services in 2005 to run a new program and court funding for the agency followed, more than doubling to $251,837.

With the JTC investigation behind them on Dec. 26 Stowe and Curry filed for a marriage license. It will be Stowe's second wedding and Curry's fifth.

6. BATA problems mount

A host of troubles swamped the Bay Area Transportation Authority, prompting internal changes for the publicly funded bus system.

BATA's seven-member board of directors increased scrutiny of the organization's finances and operations amid a budget deficit, red-flagged audit letters, a string of accidents that injured bus riders, and other concerns.

Former Director Joseph DeKoning retired in March after more than 16 years with the organization. Don Scharmen, assistant executive director of operations, is the interim director. Board members hope to interview applicants in late January 2009 and hire a new executive director in February. Among the list of BATA problems:

-- Financial woes: BATA came up more than $366,700 in the red in fiscal year 2008, but appears to be headed back on track for 2009. The agency hired a new controller, Eric Gray, in January after a year without a finance director. Gray, along with the board, addressed weaknesses in financial management and oversight that were outlined in multiple years' audit letters. They established a deficit elimination plan, as well as policies for employee travel, purchasing and conflict of interest. The bus system slashed travel expenses, made cuts to its bus services and shortened hours at the downtown transit center. BATA in August hiked bus fares by 50 percent and sought more funding from organizations that use Health Ride, a service that provides transportation to medical appointments.

-- Disabled rider injuries: At least three disabled bus riders were hurt on BATA buses over the past year while seated on wheelchairs or electric scooters, and a fourth rider reported an accident in November 2007. Two were injured when their wheelchair or scooter tipped over; two others were thrown from their wheelchairs. One woman was hospitalized with a fractured skull after her wheelchair flipped over. BATA officials contend certain wheelchairs and electric scooters are difficult to strap to the floor, but said they are responding with additional employee training and discussions with riders.

-- Lawsuit: A woman who said she suffered serious injuries when a BATA bus rammed her car sued the agency in November. The woman seeks at least $25,000 in damages following the July 2007 incident.

-- Bus shelter delays: The Record-Eagle reported in November 2007 that BATA hadn't erected 14 bus stop shelters it had owned for months. Officials contended they were waiting to iron out details of a grant. Delays continued through most of the first half of 2008 due to cold weather. Most shelters went up throughout the summer, but two remain uninstalled for stops at the Grand Traverse Pavilions and Cherryland Center.

7. Madonna wows fans at Traverse City Film Festival

Some fans waited in line 52 hours to get a ticket, and others paid hundreds of dollars in online auctions for a chance to see Madonna.

The Material Girl upped the star power at the fourth annual Traverse City Film Festival in August. Hundreds of fans flocked to the State Theatre for a glimpse of the megastar and her daughter, Lourdes.

She returned to her home state to introduce a screening of her documentary film, "I Am Because We Are."

"There's a lot of poetic things about me being here...," Madonna told a packed State Theatre crowd on Aug. 2. "You know what they say. 'You can take the girl out of Michigan, but you can't take the Michigan out of the girl.'"

Madonna was born in Bay City and grew up in Rochester Hills. Her father, Tony Ciccone, is a winemaker in Leelanau County.

She introduced her documentary on stage with filmmaker Michael Moore, founder of the Traverse City Film Festival. Moore called the evening "historic."

Her film details the plight of orphaned children and AIDS in Malawi, where she adopted her son, David. Madonna produced, wrote and narrated the piece. It was directed by Nathan Rissman, her former gardener and nanny.

Tickets to the screening went for $25. The 540-seat State Theatre sold out, as did a simulcast at the City Opera House.

An estimated $25,000 in proceeds will go to Madonna's charity Raising Malawi to help start a girls' academy in the African country.

8. Young woman commits suicide in Grand Traverse County Jail

The death of a young Kingsley woman who hanged herself at the Grand Traverse County Jail raised questions and concerns about the jail's record-keeping and supervisory practices.

Sarah Clark, 21, formed a noose with socks and hanged herself in a segregated shower room at the jail Feb. 28. She died days later at Munson Medical Center when her family removed her from life support.

Grand Traverse Sheriff Scott Fewins said jail officials had no clue of Clark's suicidal tendencies, but jail records obtained by the Record-Eagle under the Michigan Freedom of Information Act revealed a well-documented history of suicidal thoughts and acts Clark related to jail officials during her previous stays at the jail dating to 2004.

Records also show she requested to meet with a mental health caseworker only a day before she hanged herself.

Clark's mother, Wendy Blodgett, contends the jail didn't do enough to prevent Clark from harming herself. She was unsupervised as she showered for more than 30 minutes, though jail officials said privacy laws prevent them from directly supervising showering inmates.

Clark suffered chronic pain from severe injuries sustained in a 2002 traffic crash. The pain led to a painkiller addiction, then to hard drugs. She was arrested and jailed several times, and at one point served a 135-day jail sentence after a felonious driving conviction.

She had attempted suicide at least once before, an attempt that left her with jagged scars on her arms and legs. Her final arrest was for a drug violation.

Another woman attempted suicide in the jail in May. That woman, who stretched a plastic bag over her head and secured it around her neck with socks, wasn't injured, jail officials said. Fellow inmates discovered her on the floor of a community shower.

9. Voters oust incumbent sheriffs

The region's law enforcement landscape changed after three incumbent sheriffs were ousted in the 2008 election cycle and two others retired.

Two-term incumbent Antrim County Sheriff Terry Johnson lost in the August primary to Daniel Bean. Bean served as Johnson's undersheriff, but was fired shortly after announcing his candidacy.

The August primary also brought about the end of two-term Grand Traverse County Sheriff Scott Fewins, who lost to challenger Tom Bensley. Bensley formerly headed the department's marine patrol and retired in 1999 from the Grand Traverse Sheriff's Department.

In November, Republican incumbent Kalkaska County Sheriff Bill Artress fell victim to Democrat Dave Israel, a sergeant at that department. Artress beat challenger Nelson Gelinas in the August primary.

Benzie County Sheriff Bob Blank retired after two terms. Taking his place is Rory Heckman, a law enforcement veteran who until last year served as Benzie's undersheriff.

Heckman, a Republican, beat Democratic challenger Brant Downing in November and Republican challengers Damon Wilkes and Jeff Morse in August.

George T. Lasater, Charlevoix County's longtime sheriff, also retired. Elected to fill the spot was William Donald Schneider, who served as undersheriff under Lasater. Schneider was unopposed in the November election, but beat challenger Donald Sproul in August.

Heckman named Emergency Management Director Bill Sholten as his undersheriff. Bensley retained Nathan Alger, who served as Fewins' undersheriff, and Israel named road patrol sergeant Abe DeVol as his second-in-command.

10. (Tie)Racist remark about Obama, flag flap put Hampel's in public crosshairs

A Traverse City gun and lock shop flew an inverted American flag above their business the day after President-elect Barack Obama won the national election, much to the chagrin of many in the community.

Hampel's Gun Shop on Randolph Street had an upside-down flag flying above the store on Nov. 5 and an employee told a Record-Eagle reporter in a telephone interview that it was an international sign of distress because "the n----- got in."

That employee, Rod Nyland, of Traverse City, later apologized for the comment, but many in the community were not satisfied.

A 6-year-old girl and her mother staged a protest the day the story was published and others followed in ensuing days, holding signs and copies of the newspaper story with "shame on you" scrawled across it.

It was a frequent conversation topic in the days immediately following the historic election of the nation's first black president, in coffee shops, corporate offices and classrooms. Students at area schools grappled to understand the racist hate speech, and teachers struggled to explain.

Readers swamped the Record-Eagle with letters to the editor, the story appeared on various Web sites, Hampel's took many negative phone calls and customers pledged to boycott the business.

That's when an owner and a salesman at the gun shop met with a Record-Eagle reporter and editor to attempt to mitigate the damage and explain their position.

Nyland, a longtime employee at Hampel's, was fired for the flag and racial slur incidents, said salesman Jack Fellows and Tom Hampel, son of owner Karl Hampel.

Nyland acted on his own to invert the flag and utter the racial slur, they said, and they apologized to the community in a written letter.

10. (Tie)Fate of Boardman dams remains undecided

Much division remained over what to do with the Boardman River dams following more than two years' worth of community involvement, study and debate.

The Boardman River Dams Committee, a group of hundreds of volunteers and community members, met each month in recent years to hash out ideas about what to do with Union Street, Boardman, Sabin and Brown Bridge dams. They considered modifications, repairs and removal of the dams, but never reached a complete consensus among the many committee members.

Instead, the BRDC Implementation Team approved a two-pronged recommendation for Traverse City and Grand Traverse County officials: Either leave all the dams in or remove all but Union Street Dam.

The two polarized recommendations were the top two perspectives expressed during the committee process, officials said.

Union Street and Brown Bridge dams are owned by the city, while Sabin and Boardman belong to Grand Traverse County. Union Street Dam was the only one never used to generate hydroelectricity and will not be removed because it serves as a sea lamprey barrier.

The process involved $1 million in public and private grants to fund the study project and now city and county leaders must decide what to do.

Many argue the structures should be breached or removed to allow a free-flowing and more natural river, plus increased fish passage and recreational opportunities. Others prefer that the hydroelectric dams be returned to use as a renewable energy source or the dams be maintained to preserve the impoundments and wetland areas they create.

Consultant estimates call for as much as $3 million to repair and modify the four dams, while it could take upwards of $8 million to remove Sabin, Boardman and Brown Bridge dams and modify Union Street Dam.

City and county leaders will gather for a joint study session on Jan. 29 to review the recommendations.

Record-Eagle staff writers BRIAN McGILLIVARY, LINDSAY VANHULLE, MELISSA DOMSIC, ART BUKOWSKI and SHERI McWHIRTER contributed to this report.

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