News Story

Michigan township’s ban on short-term rentals brings lawsuit

Park Township’s enforcement of long-neglected ban began in October. Litigation soon followed.

“See you in court” may be the motto of some Ottawa County residents who have been battling township officials for over a year.

Property owners have rented out their homes on a short-term basis for years, as Michigan Capitol Confidential first reported in April 2022, but in December of that year, township officials voted to enforce what had been an inactive ban on the practice. They started enforcement actions in October 2023, prompting a group of residents to file suit on Oct. 5.

Approximately 250 residential homes were being used as rentals on a short-term basis before the ban. When officials considered the ban, homeowners offered various alternatives, such as a permit system, a limit on the number of rentals, and ordinances related to health, safety and noise complaints. Officials rejected those proposals, choosing a ban instead.

Over 100 homeowners created a nonprofit organization, Park Township Neighbors, to oppose the ban. The group alleges in its lawsuit that officials violated laws requiring public notice and comment. Officials, they say, have tried to cover their missteps.

The lawsuit asks Michigan’s 20th Circuit Court to strike down the ban and to enjoin township officials from enforcing the ban while the lawsuit is still active.

Jeremy Allen, president of Park Township Neighbors, says the township tried, unsuccessful, to pay its legal fees with an insurance claim. He faults officials for using taxpayer funds to defend the ban.

The township has been enforcing the ban, Allen said, adding that it sent someone to various residential properties to record the license plate numbers of the cars located there. He also told CapCon that this person had contacted the owners of those vehicles to ask if they were renting the homes.

CapCon asked Howard Fink, township manager, to comment. Fink declined comment, citing the pending litigation.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Pork Stories

Michigan lawmakers roll the dice on grant for Greektown

Street redesign in downtown Detroit bags $20M of taxpayer cash

The Greektown Neighborhood Partnership secured a $20 million grant from the state’s 2024 budget for local infrastructure improvements. The partnership became a nonprofit organization in 2014 with the purpose of “long-term economic and cultural vibrancy of Greektown,” according to its 990 form for 2021.

Greektown is a popular commercial and entertainment destination in Detroit. A casino there is one of the district’s biggest attractions, generating $331.7 million in revenue in 2022, according to Zippia. Lawmakers did not explain how they determined Greektown needs state taxpayer money for its local improvements.

Legislative leaders pledged to be more transparent this year in describing enhancement grants such as the $20 million given to the Greektown partnership. A document from the House Fiscal Agency reported the grant was for an “Intermodal road and revitalization project, Monroe Street redevelopment project.” The money will be used to redesign Monroe Street.

“Lawmakers should have the public interest in mind rather than what benefits a legislator’s constituents,” said James Hohman, director of budget policy at the Mackinac Center.

“If they think that the state could use more streetscape projects,” Hohman continued, “they ought to fund grant programs to identify the best projects for taxpayer funding.” Lawmakers should not use the political process to take money from everyone to serve their own desires, he added.

Greektown Neighborhood Partnership raised $417,457 from grants and fundraising in 2022. The nonprofit reported $243,963 in contributions in 2021.

The organization did not respond to an email seeking comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.