Township’s Future at Risk After $50 Million Legal Defeat to Local Wineries
In a picturesque township that extends into Grand Traverse Bay, a significant legal battle has culminated in a $50 million loss for the local government. The repercussions of this verdict may compel the township to sell notable assets, including the iconic Mission Point Lighthouse, and implement severe budget reductions. Residents might also face a special assessment to cover the financial judgment.
The lawsuit, filed by eleven wineries within Peninsula Township, challenges longstanding restrictions imposed by the local government. Represented by Attorney Steve Ragatzki from Miller Canfield law firm, the wineries argued against prohibitions on hosting events like weddings, conducting off-site catering, advertising wine tastings, and selling non-wine merchandise. Additionally, they were restricted from producing wine with more than 15% non-local grapes.
Ragatzki emphasized the ongoing struggle the wineries faced in obtaining permits, stating, “Over and over and over again the wineries tried to do things, and over and over and over again the township zoning officer said no. He didn’t say why it was no. It was just ‘no.'” The perceived inaction by township officials led to the lawsuit after an attorney’s demand letter was ignored by the township board, despite acknowledgment of ordinance issues by the township attorney.
The township defended its ordinances as a measure to balance the interests of wineries with residents’ desire for tranquility. However, after an eleven-day trial, Federal District Court Judge Paul L. Maloney found most of the township’s restrictions unconstitutional, citing violations of free speech rights and the Dormant Commerce Clause, which restricts state legislation from hindering interstate commerce.
During the trial, it was noted that the township failed to present a single fact witness. The judgment also highlighted testimonies illustrating the wineries’ challenges, including one from a winery owner recounting a fundraiser for a teacher with breast cancer that faced bureaucratic obstacles.
Peninsula Township plans to appeal the ruling in the 6th Circuit Court of Appeals. Township officials have remained silent on the matter despite repeated inquiries. An upcoming board meeting on August 12th will address strategies for managing the financial consequences of the judgment.
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