Land Acquisition for Beaver Island Townshipsâ?? Airport
To: Peaine Township Residents and Property Owners:
Regarding: Recent developments on the Townshipâ??s longstanding efforts to acquire land for the Public Airport (underway since 2001). This report is a follow-up to the original one posted here on the Forum on November 13, 2011. That original update referred to the claims and circumstances that led to the court decisions described below.
Conclusion of Townships vs Albin Lawsuit:
At its Special Board meeting on December 21, 2011, the Peaine Township Board decided against filing an appeal in the Albin lawsuit. Subsequently the attorneys for St. James and Peaine Townships sent the Judgment Order to the Charlevoix County Circuit Court for entry. Upon entry by the Court, the Judgment becomes final and the Albins are then entitled to collect on the Judgment.
Judgment Information
The amount of the Judgment against the two Townships was $1,085,992.61 and was made up of the following elements:
Code: Select all
Value $ 693,000.00
Less Amount Previously Paid 191,000.00
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Difference $ 502,000.00
Add Interest From 8/18/03 to 12/31/11 292,910.69
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Subtotal $ 794,910.69
Albinâ??s Attorney Fees (1/3 of Subtotal) 264,970.23
Taxable Costs 26,111.69
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Total Judgment $1,085,992.61
Probable U.S. and State of Michigan Financial Assistance:
The following information is based upon discussions between the Townshipsâ?? attorney and members of the Michigan Office of Aeronautics:
1) The U.S. Federal Aviation Administration has determined that the above Judgment is â??grant eligibleâ?. This authorizes the State of Michigan to provide the Townships financial assistance through the â??Block Grant Programâ?.
2) The Michigan Aeronautics Commission has authorized the transfer of $1,200,000 for use in satisfying the above Judgment. This amount is expected to be used in providing a â??Block Grantâ? to the Townships.
3) Upon receipt of the Judgment Order from the Charlevoix County Circuit Court, the Office of Aeronautics will prepare a grant for acceptance by the Townships. If the Judgment Order is received shortly, it is probable that the grant will be prepared in January of 2012.
Probable Cost to Beaver Island Townships:
The Townshipsâ?? contributions to Airport developments have recently been 5% of the total grants awarded. Each Township has shared these contributions 50/50. It is estimated that the Townshipsâ?? 5% contribution will be in the range of $40,000 to $50,000. This is an estimate only; the Michigan Office of Aeronautics will determine the actual amount when the grant is written. Such a contribution may require an increase in the Airport budget, but it is likely that the contribution can be made from the Airport Fund.
Status of Investments in Airportâ??s 10 Year Plan:
The status of investments shown in the current 10-Year Plan, in particular the new Airport Terminal, is unclear at this time. The status of these investments will become clearer as the Office of Aeronautics writes the grant. It will depend on the availability and timing of U.S. and State government assistance and the Townshipsâ?? ability to provide their share of the funding.
Additional Information Will Be Provided After the Grants Have Been Accepted by the Townships. If readers have questions or comments, you may contact me by telephone (Township Hall 448-2389 or Home 448-2441) or e-mail johngallagher@tds.net.
--Jack Gallagher, Peaine Township Supervisor