A township in Michigan is scrambling to gather cash after being ordered to pay millions in damages to local wineries for stifling their business.

Last month a judge ordered that Peninsula Township pay almost $50 million to the 11 local wineries of Old Mission Peninsula.

The order came after wineries won a five-year legal battle against the township over zoning regulations that they claimed affected their business. 

Peninsula Township officials are contemplating significant measures to generate funds, which might involve selling a historical lighthouse or halting maintenance of parks and cemeteries.

An attorney representing the wineries labeled the budget proposals a ‘PR stunt,’ accusing them of aiming to demonize the 11 plaintiffs who succeeded in their legal dispute with the township on July 7.

The dispute began in October 2020 when the wineries filed a federal lawsuit, claiming that stringent zoning restrictions hindered their businesses and infringed upon their constitutional rights.

According to the lawsuit, the zoning ordinances adopted by Peninsula Township regulated the vineyards’ activities. 

The zoning ordinances prohibited the hosting of ‘weddings, receptions, and other social functions for hire’ at these venues. 

Last month, a judge mandated Peninsula Township to pay nearly $50 million to the 11 local wineries of Old Mission Peninsula (shown: Chateau Chantal – a winery in Old Mission Peninsula).

Now, Peninsula Township officials are discussing drastic steps to find the money – including selling the historic Mission Point Lighthouse (pictured)

They also stated that a winery with at least forty acres may host a tasting room, but only with limited retail sales. 

Peninsula Township attempted to negotiate changes because they understood that the ordinances were unpopular with the wineries.

However, when negotiations stalled the wineries initiated a lawsuit against the Township, claiming the ordinances were unconstitutional. 

Now that the wineries have won the $50 million lawsuit, officials are publicly discussing how they can gather the money. 

“Selling property and reducing office expenses are immediate ways to alleviate the financial burden on taxpayers,” stated Township Supervisor Maura Sanders to MLive.

A special assessment, or additional property taxes, will be added to the Peninsula Township tax roll to collect the damages.

Liability insurance will also cover some of the cost, but Sanders said the township is still unsure about how much will be paid by that. 

The memo outlining potential cost-saving strategies to be discussed at the upcoming August 12 meeting also proposed the closure of all township offices and the suspension of planning and zoning activities.

The order came after wineries won a five-year legal battle against the township over zoning regulations that they claimed affected their business (pictured: Chateau Chantal – a winery in Old Mission Peninsula)

According to the lawsuit, the zoning ordinances adopted by Peninsula Township regulated the vineyards’ activities (pictured: A winery in Old Mission Peninsula) 

‘Selling property and cutting back things in the office are two ways that we can immediately have money in place to be able to lessen the burden all around for the taxpayers,’ said Township Supervisor Maura Sanders (pictured)

It also mentioned the ‘review and potential sale’ of township assets – like the historic Mission Point Lighthouse, an iconic site built in 1870 at the tip of Old Mission Peninsula. 

Other township assets listed include Archie Roadside Park, some lots at Haserot Beach and Bowers Harbor Park. 

Sanders described the lighthouse as the ‘crown jewel’ of the township and said it would be devastating to sell it. 

‘Nobody in the township, the region and all the folks that we’ve had visiting from elsewhere would want to see that go into private hands,’ she said. ‘But the township needs to look at all potential opportunities to limit the burden on our taxpayers.’ 

Joe Infante, a Miller Canfield attorney who represents the wineries – including Brys Estate Vineyard & Winery, says the dramatic measures are being discussed to ‘drive public opinion’ against his clients. 

‘The township’s litigation strategy for this whole case is really to try to rally the public against the wineries and (make the public) think the wineries are the bad guys,’ he said. 

the lighthouse had been described as the ‘crown jewel’ of the township and local officials said it would be devastating to sell it

Joe Infante, a Miller Canfield attorney who represents the wineries, says the dramatic measures are being discussed to ‘drive public opinion’ against his clients (pictured: Brys Estate Vineyard & Winery in Traverse City)

‘You read the judge’s opinion and the bad guys are the township. The person who violates somebody’s constitutional rights, that’s the bad guy.’ 

He also said he’s not sure how helpful it would be to sell the lighthouse.

‘There’s a lot of ways to do it, short of selling a lighthouse,’ he said. ‘Not sure there’s much of a market for a lighthouse.’ 

The Peninsula Township board voted to dispute the judge’s ruling in the Sixth Circuit Court of Appeals, and while the appeal is pending, the township on August 5 asked the court to pause any lawsuit payments.