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July 16, 2004Tondu sues for $100MCity says coal plant decision will standByRecord-Eagle staff writer MANISTEE - City officials say they won't back off a decision to reject a coal-burning power plant, despite a $100 million federal lawsuit filed by the developer. "I feel comfortable with our decision and the reasons for it," said Roger Yoder, chair of the city planning commission. "We knew from the onset that either way, somebody was going to take us to court." Manistee Saltworks/Tondu Corp. filed suit in U.S. District Court in Grand Rapids on Wednesday. Tondu alleged officials violated zoning laws and the company's right to equal protection and due process when they voted in April to strike down a $700 million plan to build the proposed Northern Lights power plant. "This is a violation of rights guaranteed under the Constitution," said Rodger Kershner, a Bloomfield Hills attorney representing Tondu. "Instead of applying the rules, the planning commission succumbed to political pressure." The suit also says city planners had no right to impose conditions on the permit before considering approval, including those the developer said should fall under the jurisdiction of state and federal environmental agencies. City Manager Mitch Deisch would not comment on specifics of the case or say what a lawsuit could mean to the community. "We operate on a $5 million annual budget," he said. "We have a $1.2 million fund balance. You can do the math yourself." Gerard Grabowski, a member of the Aurora Association, a grassroots group that opposed the project, said the suit appears to be sour grapes and an effort by the developer to avoid a city bill for project review. This month, Manistee's city council voted to seek a legal way to make Joe Tondu, company president, reimburse the city for the lengthy review. Officials said Tondu had asked for a bill when city planners made a decision, but invoices totaling $111,581 have not been paid. "This is all very typical of how Mr. Tondu chooses to operate his businesses," Grabowski said. "He's hoping he can litigate to intimidate. It's clear his intent is to not have to pay the money he owes for processing the special use permit." The suit addresses the invoice, and says city officials have no authority to bill Tondu for fees. "We want the court to decide we don't owe that money," Kershner said. The Michigan Municipal League, which insures the city, is expected to appoint an attorney to handle the case. Kershner said $100 million represents the potential lifetime profits from the plant, not an effort to bankrupt the city. "There is no legal reason why we shouldn't win a judgment that high," he added. "There are a couple of recent cases where developers have won higher judgments in the context of projects that weren't as large as Northern Lights."
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