Q1 Board Meeting + SAD Info session questions

On March 2, 2021 property owners submitted questions via email during the Q1 board meeting and Four Lakes Special Assessment District informational session. Due to time constraints, presenters were not able to answer all questions live. Below are questions submitted to the FLTF info email inbox. 

1. ​Could you address the news that came out today regarding the lawsuit against FERC filed by Dan and Cathy Allen of Sanford?
   • We do not take a position on individual or class action lawsuits that do not involve FLTF. 
2. What is the financial goal for obtaining funding from state, federal and private donations to fully minimize the financial impact on the property owners?
   1. State and federal funding of $100 million to $150 million would significantly offset the assessment amount. We also have a goal to raise at least $4 million in private donations. Regardless, property owners will have to pay some amount but we want to make this affordable to as many property owners as possible.
3. Who should we get in touch with to request legislative action for getting funding for the SAD?
   1. We suggest you contact your state and federal legislature representatives and say you appreciate the recovery support, and ask for their continued support for funds to restore the lakes.
4. Why has no discussion taken place regarding lake property owners assessment going towards ownership of the dams? Most residents would likely agree that the assessment is much more palatable if it was going towards ownership of the dams and not just return of the lakes.
   1. The assessment will alleviate expenses toward acquiring the dams, which are now publicly owned by Midland and Gladwin counties. 
5. Why isn't hydropower a viable option? I heard that it is not profitable in the first 10 years, but if this is a 40-year assessment why wouldn't hydropower offset costs past 10 years?
   1. There are significant issues with Boyce Hydro, the hydropower licenses and FERC. The hydropower licenses have become a burden to our mission to restore our lakes. The Edenville Dam license was previously revoked. The Sanford Dam will need to be relicensed for hydro, and Secord and Smallwood dams require electrical upgrades to the power plants and interconnections. These conditions make it economically unfeasible to recover the investments needed to keep hydro and will slow the time it takes to rebuild the dams. There may still be a future for hydro, potentially beyond the 2030 timeframe after the dams are rebuilt, but not in transition.
6. Will there be the operating expense plus the special assessment for dam repair?
   1. Yes, long-term there will be an overall operations assessment, then a dam-by-dam capital assessment for each dam’s repair. 
7. Are the base case assessment amounts flat costs without any grants?
   1. Yes.
8. Why aren’t the federal and state government taking more responsibility?
   1. There has been significant state and federal support for recovery of the dams with the state providing $22 million and the federal government providing $20-$30 million of 75% matching funds available for erosion, debris removal and dam stabilization from NRCS. To get significant funding to rebuild the dams will require a special act of Congress.
9. Why are property owners responsible for the dam failures and loss of lake front?
   1. The private owner shed its responsibility through bankruptcy leaving the counties and property owners to come together to develop a path forward. We agree that this situation isn’t fair, but we think it’s in the best interest of the property owners and the communities to bring the lakes back.
10. Why are backlots not equally charged as lake front lots in the Special Assessment District?
    1. They have less “benefit” because they have access to a waterway but less direct access.
11. Why start at 300 ft? Most property owners own 40-60 ft. 
    1. 300ft was chosen because we believed the benefits derived were much the same for all frontage up to 300 ft.
    2. If you have a question about your specific assessment please email [email protected] and include your specific lot number and question.
12. Shouldn’t the City of Midland and/or Dow bear some responsibility for this cost since they have major benefits?
    1. Other than a general economic benefit that the county could assign to all county property owners, there is no flood control or environmental benefit these entities receive.