Zoning repeal document details financial liability, litigation strain

EAGLE RIVER -- The Keweenaw County Board of Commissioners approved a zoning ordinance amendment application Wednesday evening to permanently repeal countywide zoning. According to the three-page document, the application seeks the repeal because continued county zoning entails potential financial liability and consumes limited county resources which the board believes should be directed toward other public services.

During Wednesday's regular October meeting, Board Chair Don Piche emphasized that the issue extends far beyond basic operational costs.

"There's more to it than that," Piche said. "There's a lot more to it than that--the liability issues for one thing."

The document says the county has experienced ongoing litigation associated with its planning and zoning functions, voters have rejected additional funding for zoning administration, and the county's zoning expenditures have increased.

Private attorneys are currently representing the county on a circuit court appeal of the decision by the board of commissioners to remove an individual from the planning commission, a separate lawsuit filed by the same individual seeking monetary damages, and another circuit court appeal of an adverse decision by the Keweenaw County Zoning Board of Appeals involving a different party. Although county insurers have thus far covered attorney fees in these matters, the document notes that coverage does not eliminate the administrative burden of litigation or establish that all future defense costs and liabilities arising from county zoning will be covered.

"We've got three lawsuits on the books right now," Piche told the Daily Mining Gazette Friday, adding that the county will potentially face another lawsuit involving a sign on private property that was placed within a county road right-of-way.

The document notes that a zoning ordinance repeal would not itself resolve pending litigation or eliminate liability arising from prior conduct. It would, however, end county zoning administration once effective, and reduce the potential exposure associated with its continued operation.

At Wednesday's meeting, Board Vice Chair Del Rajala commented that residents had already voted against funding countywide zoning two years ago.

"The voters already told us not to pay for this," Rajala said.

Several audience members replied that they had not. Rajala's comment referred to a proposal placed on the ballot in November 2024, when county-funded zoning was a hotly debated issue across the county. At that time, the county asked voters to approve a 0.5-mill tax levy per year on all property to fund zoning administration from 2025 through 2028 inclusive.

The millage request was defeated countywide by a vote of 849 to 674. Of the five townships, only Houghton and Grant voted in favor of the funding measure, while Eagle Harbor Township continues to handle its own independent zoning operations.

Rajala's remarks echoed a statement he made immediately following that November 2024 ballot box defeat.

“We did say we need the money,” Rajala said in 2024. “We asked the people, the people said no. Now, we’re trying to find the money.”

Notwithstanding the defeat of the millage, the county continued to administer zoning using general fund monies, the document says. Zoning expenditures have since increased, due in part to an administrative decision to make the zoning administrator position full-time in order to improve zoning administration.

The county board has concluded that county funds devoted to zoning would be better spent on other public services, including law enforcement. Once the repeal becomes effective, savings from discontinued administration can be directed to other county services, facilities, and programs.

Piche reiterated on Friday that zoning administration properly belongs at the localized township level rather than with the county.

"We're giving a year for the townships to get together and form their own zoning," Piche said. "The three townships could certainly work together and come up with their own zoning ordinances. That's what it's going to have to be, because we're not backing down from this."

Repeal of the zoning ordinance will not abolish the Keweenaw County Planning Commission, the document says. The commission will continue its planning responsibilities, including maintaining the county's master plan and coordinating with township and other governmental planning bodies. The county will therefore retain a means of addressing countywide planning concerns while discontinuing county administration and enforcement of zoning.

Townships that elect to administer zoning will assume associated responsibilities and costs. The delayed effective date of the repeal, Oct. 5, 2027, provides time for the townships to consider individual or joint arrangements.

The document emphasizes that the county will continue administering applicable building code requirements. Applicable permitting requirements administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), the Western Upper Peninsula District Health Department (WUPHD), the Keweenaw County Road Commission, and the Michigan Department of Transportation (MDOT) will also remain in effect.

The county recognizes that these requirements do not replace every protection provided by zoning. The effects of the repeal on land-use compatibility, environmental conditions, and property values will depend in part upon the zoning arrangements adopted by the townships and the development that subsequently occurs.