Developer, officials settle Sunkissed Hills appeal

Mar. 14—FRANKFORT — An appeal by owners of a residential development on Crystal Lake was dismissed this month after a judge approved an agreement between Sunkissed Hills LLC and Benzonia and Platte township officials.

The Terra Innovations development received permitting in 2021, and has been beset with periodic problems, as detailed in public meetings and in emailed communications between local and state officials.

At one point, Jason Barnard, Benzonia Township's supervisor, who also holds the job of zoning administrator for Benzonia and Platte townships, told a state environmental official the project had been a "complete nightmare."

Leaders with the Crystal Lake & Watershed Association, a nonprofit organization with about 800 members, monitored progress of luxury-home development, attending municipal meetings and requesting updates.

Last year, the association hired an attorney who researched local ordinances and, in March, wrote to the planning commission on the association's behalf, asking commissioners to deny the site plan for the private road.

"The applicant has failed to present a stormwater drainage plan that addresses all of the above requirements, and that has been approved and sealed by a Michigan Registered Professional Engineer," Traverse City attorney Kristyn Houle said in a letter dated March 14, 2023.

Other residents questioned the number of trees and other vegetation removed from the steep slope during construction and wastewater plans that Benzie-Leelanau Health Department records show changed more than once.

During initial construction, point-installed erosion control failed to contain issues from heavy spring rain, resulting in a wetland violation from Benzie County.

Terra hired a professional engineer and stated in court documents that developers in August provided a detailed report on the road, demonstrating compliance with terms and conditions of the March approval.

The private road was also the subject of the court case, settled March 7 and signed by 19th Circuit Court Judge David. A. Thompson.

Sunkissed attorney Jonathan Moothart said in court documents his client received final approval by members of a joint planning commission in March, rendering the new conditions imposed in December invalid.

On Dec. 7, members of West Benzie Joint Planning Commission voted unanimously to "conditionally approve" the private road, once developers reconstructed 775 feet of it, planted hardwood trees approved by a certified forester, agreed to never allow vehicles on a deeded easement between the eight homes and the shore of Crystal Lake and posted a performance bond.

Planning Commission members said the conditions were necessary; while developers said officials were bowing to pressure from an environmental group.

The newly imposed conditions would cost $300,000 to complete, the developer said in court documents, and the approval delay cost $500,000 in lost revenue.

The five-bedroom, four-bathroom homes, on the south side of the lake near a public boat launch, are listed for sale on Zillow, a real estate website, priced at $1.29 million.

In the original complaint, filed Jan 19, Sunkissed Hills asked the court to vacate the additional conditions in the "New Approval," enter an order approving the site plan, award attorney fees and whatever amount above $25,000 the judge saw fit.

The settlement agreement, however, calls for Sunkissed Hills to improve the road as documented in an amended site plan, in which shoulders are identified, guardrail fencing installed and trees planted.

The private road can be used for all eight new homes and seven more residential units, if built, but the easement, identified as Linda Lee Lane, cannot be paved or used for vehicle traffic for 10 years.

Sunkissed Hills also must pay the West Benzie Joint Planning Commission and Benzonia Township $2,632.45 for engineering reimbursement.