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December 17, 2004Tondu demands $810MFormerly, company asked for $100 millionByRecord-Eagle staff writer MANISTEE - A would-be power plant developer now wants $810 million in damages from the city for blocking a plan to build a coal-fired power plant on the shore of Lake Manistee. Manistee Salt Works Development Corp., an arm of Tondu Corp., sued the City of Manistee in federal court in July and originally asked for $100 million in damages. In a statement of disclosures filed in the U.S. District Court for the Western District of Michigan, the company's lawyers now say the damages reach $810 million. That figure is based on "an expected annual profit of approximately $27 million, projected out 30 years," according to the filing. Roger L. Myers, attorney for Manistee Salt Works, did not return messages seeking comment. "The number is certainly shocking," said Chris Bzdok, attorney for the Little River Band of Ottawa Indians and the Manistee Citizens for Responsible Development, who have intervened as defendants in the suit. "The use of these numbers as an attempt to bully and intimidate by Tondu and its lawyers comes as no surprise, however." Bzdok said he does not understand how the profits were calculated to come up with the $810 million figure. "The question is whether these outrageous claims will withstand judicial scrutiny," Bzdok said. In the filing, Manistee Salt Works said the damage figure was based on a preliminary calculation and was subject to change. The figure also does not include attorney fees. Attorneys for the City of Manistee did not return messages seeking comment. The lawsuit stemmed from Manistee's refusal to approve a special use permit for the plant proposed by Tondu Corp. The case is scheduled for a settlement conference in February and a jury trial is scheduled for January 2006.
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