ELK RAPIDS — A lawsuit over the village's purchase of a riverfront parcel is resolved, and officials are ready to hear what the public thinks should be done with the property.
A lawsuit filed by former property owner Johan Bech was dismissed this month in 13th Circuit Court, and Elk Rapids now holds clear title on the waterfront parcel between Dexter Street and Elk River, village attorney Scott Howard said.
Village officials said they hope to receive public suggestions for future uses beginning in early September.
Elk Rapids bought the land in April for $600,000 from The Private Bank & Trust Co. of Chicago. The bank foreclosed on that and other Bech-owned property that had been used as collateral for a $1.5 million commercial mortgage Bech obtained in 2006, according to court records.
Bech challenged the sale to Elk Rapids village and alleged the bank didn't properly follow state foreclosure laws. Bech agreed to drop the suit after depositions were taken, Howard said, and Bech signed a quit claim deed that turned over the property to the village.
"It's very helpful to have everything cleared up once and for all so there's no question about title," Howard said.
The property is adjacent to the village marina. It's one of the earliest commercial properties in the village and dates to a general store that opened in the 1850s.
It's also been home to a private marina, an oil company and a small manufacturing plant, before Bech and his wife bought the site in the 1980s and ran a gourmet mustard operation there for several years.
Now the public will get a chance to offer ideas for the next use. Open houses will be held Sept. 7-8 from 6 to 8 p.m., and property tours will be available. Next will come a Sept. 12 public meeting and discussion at the village office, Village President Dan Reszka.
"It's an important part of the community," Reszka said. "It's nice that it's going to be in the public's hands now."
Reszka said officials hope to generate a wide range of ideas, but the property has limitations, including soil contamination that could impact future plans. The village's use of restricted marina funds to buy the property also limits what it can do.
"We can't put a McDonald's in there, for instance," Reszka said.
The village could sell the property for future development if that's what the community requests, he said.
Design work is underway for about 20 boat slips on the riverfront side of the parcel. Village manager Robert Peterson said officials want slips available by next spring so they can generate revenue to cover property acquisition costs.
