Mitchell B Foster v. Charter Township of Washington

CourtMichigan Court of Appeals
DecidedApril 28, 2022
Docket355650
StatusUnpublished

This text of Mitchell B Foster v. Charter Township of Washington (Mitchell B Foster v. Charter Township of Washington) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell B Foster v. Charter Township of Washington, (Mich. Ct. App. 2022).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

MITCHELL B. FOSTER, UNPUBLISHED April 28, 2022 Plaintiff,

and

SEVEN LAKES PARTNERSHIP, LLC, and SEVEN LAKES DEVELOPMENT, LLC,

Plaintiffs-Appellees,

v No. 355650 Macomb Circuit Court CHARTER TOWNSHIP OF WASHINGTON, LC No. 2000-003728-CH WASHINGTON TOWNSHIP PLANNING COMMISSION, and WASHINGTON TOWNSHIP BOARD OF TRUSTEES,

Defendants-Appellants.

Before: LETICA, P.J., and REDFORD and RICK, JJ.

PER CURIAM.

Defendants, Charter Township of Washington, Washington Township Planning Commission, and Washington Township Board of Trustees (collectively “the Township”), appeal as of right the order granting attorney fees to plaintiff, Seven Lakes Partnership, LLC (Seven Lakes). On appeal, the Township challenges the trial court’s award of attorney fees and costs to Seven Lakes. The Township also challenges the trial court’s earlier, October 30, 2020 order, requiring the Township to enter into a cost sharing agreement containing a payback provision with Seven Lakes, and adding Seven Lakes as a party-plaintiff. We affirm.

I. BASIC FACTS AND PROCEDURAL HISTORY

This case arises out of a consent judgment, entered in September 2000, between Seven Lakes Development, LLC, and the Township, concerning approximately 459 acres of undeveloped

-1- land owned by Seven Lakes Development, LLC, on the northwest corner of 31 Mile Road and Mound Road. The relevant portions of the consent judgment are:

9. The Special Land Use Development Plan represented by Exhibit “A” is approved in its entirety under the prior ordinance for the Residential Open Space Development being 190.2137, with the density of 201 residential units, subject to the following:

* * *

g. Extension of Township water is not guaranteed by the Township to service any of the sites. As long as there is capacity and water is available, the Plaintiff shall be entitled to avail itself of water at the site. If Plaintiff desires to obtain water prior to the Township bringing it to the site, Plaintiff may advance such sums as are necessary for such off site improvements or extensions, as long as there is proper capacity. The Plaintiff and Township shall then execute and enter into a pay back agreement substantially in conformance with the terms and conditions set forth in Exhibit B attached;

11. . . . This Consent Judgment is binding upon the parties hereto, their respective heirs, personal representatives, successors, successors-in-interest and assigns; and further, the terms and conditions of this Consent Judgment as the same may be amended from time to time, including without limitation uses permitted on the Development Property pursuant to this Consent Judgment, shall be deemed to run with the land for the benefit of the Development Property only, and not for the benefit of any surrounding property.

14. In the event that any party makes a determination, in said party’s sole discretion, that any other party is not acting in a reasonable and timely manner, said alleged aggrieved party may petition this Court to resolve said dispute and the parties shall make themselves immediately available for hearing on a date to be set by this Court as soon as possible subject to the Court’s schedule. In the event this Court finds that any party has not acted in good faith or in conformity with this Consent Judgment, then this Court may order all costs and attorney fees incurred to such prevailing party.

Relevant portions of Exhibit B, referenced in paragraph 9(g) of the consent judgment, include:

2. Payback District. The area and properties benefitted by the Water Improvements (“Water District”) are set forth on Exhibit “C” attached hereto and made a part hereof. Fees and charges paid by persons or entities in the Water District for use of the Water Improvements shall be paid to Owner [Seven Lakes Development, LLC] in accordance with Paragraph 8 hereof.

-2- * * *

8. Payback.

(a) Owner shall be entitled to receive from the Township all Water Main Benefit fees and any subsequent similar, or replacement fees, but excluding the proceeds received by the Township from Water System Benefit fees or in connection with the creation of any special assessment district(s) for improvements which connect to the Improvement (collectively, the “Connection Charges”), paid by anyone within the Water District who has hooked up to, tapped into, is using, or is benefitted by the Water Improvement and who requires more than one (1) single- family residential capacity unit . . . .

Seven Lakes Development, LLC, sold approximately 104 of the 459 acres (Seven Lakes’s property) to Seven Lakes, in May 2016, and Seven Lakes acknowledged and consented to be bound by the consent judgment. In the summer of 2020, the Township began a plan to extend the municipal water main from 30 Mile Road to the northeast corner of 31 Mile Road (Segment 1), to commence construction in October 2020. Seven Lakes negotiated with the Township to expand the project from the northeast corner of 31 Mile Road, past Seven Lakes’s property (Segment 2), which would attach to the Township’s additional planned extension further north (Segment 3). The Township mandated Segment 2 continue beyond the end of Seven Lakes’s property and connect to Segment 3.

Seven Lakes alleged the Township, at a meeting in July 2020, agreed to a cost-sharing agreement for Segment 2 that would include a payback provision, but the first draft of the cost- sharing agreement Seven Lakes received did not contain a payback provision. Seven Lakes’s counsel sent a letter, in which he alleged the consent judgment required the Township to agree to a payback provision with Seven Lakes, indicating time was of the essence, and notifying the Township of Seven Lakes’s intent to file suit if the Township did not comply.

When an agreement was not reached, Seven Lakes moved to show cause to enforce the consent judgment, contending the Township was required to enter into a cost-sharing agreement with Seven Lakes containing a payback provision. Seven Lakes sought the payback provision because it gave the entity water benefit fees. Specifically, the water benefit fees paid by those who tapped into the Segment 2 water main would be used to reimburse Seven Lakes for a substantial portion of the expenses it incurred in building Segment 2.1 Seven Lakes claimed that the Township would not allow Segment 2 to be built unless Seven Lakes entered into a cost-sharing agreement. Seven Lakes further asserted that time was of the essence because the project’s contractor had ordered the pipes for the project and was planning to begin work on the site within a week of the motion’s filing.

1 Washington Township Ordinances, §§ 186.4101(B) and 186.4102, require properties connecting to the municipal water line pay various fees. Among these fees is a Water Main Benefit Fee, which is charged to connecting properties on a pro rata basis.

-3- At the motion hearing, Seven Lakes argued, since acquiring the 104 acres from Seven Lakes Development, LLC, it had acted in accordance with the terms of the consent judgment and its amendments. Seven Lakes explained, under the consent judgment, it was required to provide all costs for the extension of Segment 2 under a cost sharing agreement, but was entitled to a payback provision entitling it to water benefit fees of properties that would be able to tap into Segment 2. Seven Lakes stressed the urgency of the matter, explaining the contractor was ready to begin work, and the pipes had been ordered for Segment 1, but not Segment 2, which could cause increased costs and scheduling problems.

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Cite This Page — Counsel Stack

Bluebook (online)
Mitchell B Foster v. Charter Township of Washington, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-b-foster-v-charter-township-of-washington-michctapp-2022.