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Dam flooding four years later: Heron Cove Association appealing assessment

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This weekend marked four years since the Edenville Dam failed and the Sanford Dam overflowed...

GLADWIN COUNTY, Mich. (WJRT) - Sunday marked four years since the Edenville Dam failed and the Sanford Dam overflowed, causing disastrous flooding in Midland and Gladwin County.

The Heron Cove Association continues to appeal property tax assessments that could be imposed to fund reconstruction of the dams.

A hearing in the appeal is set for May 29.

As the next hearing approaches, the Four Lakes Task Force, Heron Cove Association members and community members await the impact on the project timeline and the return of the lakes.

Jan Colton and George Kratz of the Heron Cove Association tell ABC12 if the assessment goes through, it would be unfair -- and even detrimental.

"The problem is the tax is astronomical," George Kratz, owner the River House Bar & Grill on Smallwood Lake in Gladwin County, said.

He said it's unfair that neighboring businesses are not subject to the same assessments.

"I'm being assessed three different maintenance fees. I have a tax that equals over a quarter million dollars assessed to this bar. I've tripled my taxes," he said.

He also said he now has to generate an additional $500 a week to pay for the extra assessments, unlike similar establishments a quarter mile away. Kratz says it could put him out of business.

"Now if this tax is assessed to me, they can sell their burger at a regular price or their food. To make this tax, I would have to sell a burger at $25. New York prices," he said.

In 2021, Four Lakes Task Force's total project cost estimate was $250 million. In January 2024, the total project cost estimate rose to $364 million. The January 2024 estimated capital assessment to be levied against property owners is $217.7 million.

It's added pain to the feelings that are still very real four years later.

"The water damage, squatters getting into it and everything, I went six months without running water in that house because the water table completely dried up," Gladwin County resident Jan Colton said.

Colton's home on Wixom Lake in Gladwin County will have to be torn down. Both she and Kratz agree that victims should not bear the entire burden of the disaster.

"When a hurricane comes by the government steps in and helps people get whole. That hasn't happened here," Kratz said.

Work does continue here on the Sanford Dam with available funding but work on the other three dams will eventually stop amid the court battle.

We reached out to the Four Lakes Task Force for comment, and they sent us this statement:

"Currently, all four dams remain under construction. Crews completed phase four of the Edenville Dam restoration project. Phase five -- the final phase of restoration -- is delayed until financing is secured. Work will suspend on the other three dams throughout 2024."

The task force will provide an update on timing later this month.

As far as a comment on the appeal, the Four Lakes Task Force tells ABC12 in a statement that each side has filed their briefs and oral arguments will be heard by Judge Beale on May 29. 

The task force says, "If there is a positive resolution by September, then the task force will be able to secure financing and maintain momentum on construction."

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