Time spent trying to settle a long-running lawsuit concerning Elk View Estates ended up costing Oxford Township nearly $300,000 in state grant money it had secured in 2013 to help fix the storm water drainage problems that have plagued that subdivision since the late 1990s.

“It’s technically a one-year grant,” explained Treasurer Joe Ferrari, who was handling the grant. “They allow you to extend it up to three times. We hit our max.”

During last week’s township board meeting, officials discussed the fact they’re not going to be able to meet the requirements necessary to receive $295,000 in grant money from the Michigan Department of Environmental Quality (MDEQ) before the Sept. 30 deadline.

“The lawsuit delayed the ability of the township to implement the grant conditions,” said township attorney Gary Rentrop.

“It is possible to reapply, but we would not qualify for the monies until 2019,” Rentrop noted.

Reapplying would require a delay in the drainage construction until then.

Back in 2013, the township signed an agreement with the MDEQ accepting the grant money to help fix the storm water drainage problems in Elk View Estates that routinely led to the flooding of some residents’ properties.

Located on the east side of Baldwin Rd., south of Hummer Lake Rd., Elk View has been the focus of much controversy, a seemingly endless stream of tax dollars and many headaches for both its residents and township officials.

In terms of legal fees, the township has expended $439,588 on Elk View since 2001, according to Clerk Curtis Wright.

Since November 2013, the township has spent $50,708 on engineering services, provided by the Oxford-based Sharpe Engineering, related to Elk View. That doesn’t include fees paid to the township’s previous engineering firms over the years.

In addition to drainage problems, neither of Elk View’s main roads – Elkview and Bull Run – legally exists because they were never dedicated as either public or private roads nor were they ever approved by the Road Commission for Oakland County. Both roads are still technically private property owned by Bronco Investments, LLC.

Most everyone involved agrees it was the allegedly improper actions of Scott Constable, the developer who created Elk View Estates, that were primarily responsible for the current situation. Constable declared bankruptcy in 2005 and moved out of state.

However, it’s also understood that errors made by both Oakland County and the township’s building department contributed to creating the long-standing mess.

Thanks to a consent/default judgment regarding a lawsuit involving multiple Elk View property owners and the township, signed by Oakland County Circuit Judge Cheryl A. Matthews on Aug. 9, the situation is finally going to be resolved.

“We’re getting near the end of an 18-or-19-year ordeal, not only for the township, but for (17) property owners out there at Elk View,” said Supervisor Bill Dunn. “I’m glad it’s almost finished.”

However, the time it took to finally settle the lawsuit cost the township the MDEQ grant.

“The $295,000 grant had conditions that had to be met in order to . . . receive that grant money,” Rentrop said.

The “principle condition,” the attorney explained, was the township had to award a contract for the drainage improvements and expend the $200,000 in matching funds the municipality was required to provide as part of the grant. “All this had to happen before Sept. 30,” Rentrop said.

“In that the township does not have a contract for improvements and has not spent any of the money, it’s virtually impossible for them to achieve that,” Rentrop said. “There’s even a clause in the agreement (with the MDEQ) that (states) you’re supposed to have all that in 30 days before Sept. 30.”

Rentrop explained the township “could not do the improvements until they controlled the land and they could not control the land until the consent/default judgment was entered into.”

The land he’s referring to are the properties it’s necessary for the township to acquire or obtain drainage easements across in order to implement the necessary storm water drainage improvements.

Legally, a person can’t create a drainage situation where the rate and/or volume of storm water that flows onto another property increases unless they either own it or have the landowner’s permission.

As part of the judgment, the township has agreed to purchase 100 acres of adjacent, vacant property owned by Bronco Investments, LLC., for $500,000.

The township is also acquiring a drainage easement across a lot owned by BBJ Mortgage Services, Inc. for $100,000 and buying a wetlands area owned by Nektarios and Jean Roukounakis for $35,000.

The township is expected to close on all three of these key properties Sept. 20.

With regard to the lost grant, Ferrari said the township simply ran out of time and extensions.

“This has been going on for so long, so many different delays,” he said. “They wanted it wrapped up three years ago.”

“It would have been nice to know about this a year ago, so we could (have planned) it a little better. Shame on us,” Dunn said. “I never heard this until a couple days ago.”

“I just can’t see how that happened,” said Trustee Elgin Nichols, who described the situation as “very disappointing.”

Ferrari noted the township board approved grant extensions year after year.

The township anticipates implementing the drainage and road improvements next spring.

Township Engineer Jim Sharpe, president of the Oxford-based Sharpe Engineering, estimates the total project cost to be $495,000.

That includes $272,500 for the storm water drainage improvements and $222,500 for the roadway improvements to Elkview and Bull Run that will bring them up to public standards, so they can be accepted, owned and maintained by the county road commission.

The township won’t have an exact cost until it solicits bids for the project.

Township officials have agreed to pay at least 65 percent of the improvement costs.

The remainder will be paid by Elk View property owners via a Special Assessment District (SAD). The SAD includes 17 parcels with one of them, owned by Bronco Investments, being charged as five lots, for a total of 21. Bronco intends to split its single parcel into five lots.

Addressing the board during the meeting, Rentrop remarked, “You guys sound like you’ve had enough of this case.”

“We’re fed up with it,” Dunn replied.