At a township board meeting Tuesday evening, a northern Michigan community discussed the ramifications of a federal judge ruling that said they have to pay out $50 million to 11 wineries in the area.
The wineries argued the township's zoning regulations were too heavy handed and prevented them from doing business activities like playing live music, hosting weddings, selling some forms of merchandise or advertising wine tastings. Peninsula Township, an area with around 6,000 residents, is appealing the ruling.
Township Clerk Maura Sanders said the city should still discuss the prospect of selling property and halting services.
"We have to have this on the top of our mind," she said during the meeting. Sanders has suggested making cuts to cemetery and park maintenance.
She also warns township offices might need to close and go to virtual work. In addition, all real estate owned by the township, including the historic Mission Point Lighthouse, might go up for sale.
"Even if the appeal gets cut in half, that's still $25 million. That is still a heck of a lot of money for some people to bear on their tax bill. It's a real concern," Sanders said.
Becky Chown is the Peninsula Township clerk. She said at the meeting, they should wait for the outcome of the appeal.
"Our insurance council is requiring us to appeal, and our attorneys believe we have valid defenses and that the judge's ruling is improper, something that is widely supported," Chown said. "In light of this, my strong recommendation is to carry on. We can always take austerity measures down the road if we must."
Chown said she was confident the board would prevail in the 6th Circuit Court of Appeals.
"None of us who are serving here caused this lawsuit. We are doing our darndest, and we have worked hard to have settlement discussions over the course of five years," Chown said.
The board did not make a formal decision on selling assets or reducing costs at the meeting.
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