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October 15, 2004Former DNR director works for developerCool now a consultant for JohnsonByRecord-Eagle staff writer PETOSKEY - Former state Department of Natural Resources director K.L. Cool has landed work as a consultant to Bay Harbor developer David V. Johnson, just months after he left office. Some environmentalists lashed out at the arrangement and said Cool took extraordinary action as DNR director to help Johnson with a controversial land swap on Lake Michigan's South Fox Island, about 25 miles northwest of Leelanau County. "It stinks. My stomach hurts," said Hans Voss, executive director of the Michigan Land Use Institute. "It just shows how close that revolving door between government and people with influence is, and it has to stop," Voss said. Johnson is chairman of Bay Harbor Co. and Victor International Corp. of Auburn Hills, a resort development firm. Johnson said he hired Cool to help address cement kiln dust leachate contaminating Little Traverse Bay from Bay Harbor. The mega resort was built on the site of a former cement plant. "There's nobody better to make sure we are doing it right; someone who can help us understand what we need to do, what to address and who we need to address it to," Johnson said of Cool. Cool was DNR director for eight years, mostly under former Gov. John Engler. His contract was not renewed after Gov. Jennifer Granholm took office in 2003 and he left the DNR June 1. Cool came under fire for his role in a deal giving Johnson 219 acres of South Fox Island's southern tip in exchange for a similar amount of property on the northern part of the island. The Grand Traverse Band of Ottawa and Chippewa Indians sued, alleging tribal land was improperly involved. Environmental groups contended the public lost far more valuable, unique and environmentally sensitive island properties to the developer. Lana Pollack, president of the Michigan Environmental Council, said the relationship between Johnson and Cool underscores a need for state ethics legislation to ban high-level state employees from taking jobs with private sector interests over which they held regulatory duties. "(Cool) violated the public trust. We lost the land, Johnson was the clear winner and Cool ends up working for him," she said. "It was so apparent that he was not working in the public interest." Messages left with Cool were returned by his wife, Vicki Cool, who said she is vice president of Cool Consulting Co. of Auburn Hills. "Frankly, what is the benefit of him talking to the Traverse City Record-Eagle?" she said. "I think what you are doing is trying to find a conspiracy where there is none," she said. "These are very honorable people doing very good work in an honorable way. Surely you've got better things to do with your time." Natural Resources Commission Chairman Keith Charters was instrumental in Cool's hiring in 1996, but didn't push to extend his contract this year. "We can't control what happens to somebody when they leave the DNR," Charters said. "I don't think there was any collusion, any pre-determined collusion. Charters added: "The perception is not good, anyway." Johnson said he "did not have much contact with Cool when the South Fox exchange was going on. "I had contact with his people, most of which was not pleasant. But they did their jobs and we did our jobs," he said. Cool nixed a proposed swap of North Fox island for the southern South Fox property, Johnson said, "much to my disappointment." Cool helped bring about the state's purchase of North Fox in 1997, preserving the island for the public, Johnson said. Johnson said he had more contact with Cool as a member of the state Waterways Commission. Engler appointed Johnson to that post in 2002, and he served there until July. Tom Bailey, executive director of the Little Traverse Conservancy in Petoskey, said he doesn't see anything unusual in Cool's transition to the private sector. Former public officials often are sought for their expertise of regulations and "knowing the system," he said. "I don't know that there is anything wrong with people working in the field they are affiliated with, as long as they do so ethically and appropriately," he said. Voss, of the land institute, said the deal never made sense for state residents. "This deal benefited Dave Johnson. It did not benefit the citizens of Michigan," Voss said. "Why was the DNR pushing this trade, which was not in the public's best interest? No environmental, hunting or conservation groups supported this swap. Yet K.L. Cool pressed and pressed and pressed." The local health department in September closed a section of Bay Harbor's shoreline after finding the kiln dust leachate caused high enough pH levels in the bay to cause second-degree burns. Johnson downplayed the risk posed by the contamination. "It's not like it's sulphuric acid," he said. "High pH is like a Jacuzzi that gets out of whack." Johnson said he and Cool attended 25 annual homeowner group meetings at Bay Harbor over Labor Day weekend, explaining the leachate issues to resort owners. The responsibility for dealing with the contamination ultimately lies with former Bay Harbor partner CMS Energy, Johnson said. Cool has been "making sure CMS was educated, informed and did the right thing" with regard to the contamination, Johnson said.
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