Youth For Christ Applicant Takes Aim At Fishtown Preservation Society's Tax-Exempt Status

Tensions are rising in an already-heated debate about whether a local Christian youth ministry should be allowed to establish a clubhouse in downtown Leland.

The Leland Township Planning Commission was expected to make a decision at a meeting scheduled for this evening (Wednesday). That meeting has been cancelled due to inclement weather; a rescheduled date is expected to be announced soon. Raising the stakes in the meantime is a new letter from the applicant’s attorney, which takes aim at the neighboring Fishtown Preservation Society (FPS) and its tax-exempt status.

Apollos Properties LLC is seeking a Special Land Use Permit (SLUP) to use the north building at 110 North Lake Street for a “Leelanau County youth club center.” Apollos plans to lease the property to Leland Lighthouse, a local branch of the multi-national Youth for Christ (YFC) movement, as a new headquarters and gathering space. 

For months, opponents have argued the proposed use runs afoul of downtown Leland’s village commercial district (C-1) zoning. But Apollos seemingly got a lifeline last month when Brad Wierda, an attorney for the township, provided a written legal opinion siding with the applicant on multiple key questions. Wierda argued the township has no clear grounds to deny the application under zoning, and warned of “constitutional and federal law implications” if the SLUP isn’t granted.

Nevertheless, planning commissioners voted in February to postpone their decision to this month, in part because Wierda’s legal opinion was roundly challenged by members of the public. In a letter to the planning commission dated February 13, local resident and practicing attorney Jacob Danziger derided Wierda’s memo as “the worst legal brief I have ever seen,” criticizing how it “advocates for a single side of each possible determination, without illuminating any potentially countervailing facts or potentially contrary interpretations of the law.” Danziger insisted the township seek a second legal opinion.

Other residents echoed Danziger’s recommendation, with some accusing Wierda of being biased in favor of YFC because of his Christian background. Wierda is an alumnus of Calvin College, a Christian college in Grand Rapids, and previously served on the board for Traverse City Christian School.

Lee Cory, who was appointed planning commission chairperson last month following the January resignation of former chair Ross Satterwhite, concurred with public sentiment.

“In my opinion, the planning commission does not currently have sufficient legal analysis of the requirements of the ordinance, the applicable law, or the application of the ordinance and the law to the facts at hand in this application, which would allow us to make findings of fact required by the ordinance,” Cory said at last month’s meeting. “Therefore, I would like to make a motion to do the following: First, to engage outside counsel to provide another analysis; and second, to postpone the findings process and a decision on this application until the planning commission has had sufficient opportunity to review the additional analysis.”

Cory’s motion passed 4-1, paving the way for this month’s now-rescheduled meeting. There, the board was slated to review a second legal opinion, work through the findings of fact process, and perhaps vote on the Apollos application.

The township hasn’t publicly shared the second legal opinion, but another document has emerged which could influence the planning commission’s decision. In a letter addressed to Leland Township Assessor Julie Krombeen and members of the township’s Board of Review, attorney Timothy White of the Traverse City-based firm Parker Harvey encouraged a revocation of the tax-exempt status enjoyed by FPS. White noted he was writing the letter “on behalf of our client, Jim VanSteenhouse,” who owns Apollos Properties.

“It is important to our client that all parties are subjected to the same standards with respect to property taxation,” White wrote. “As such, we do not believe that FPS is properly considered a ‘charitable institution’ under MCL 211.7o, and that even if it were a ‘charitable institution’ it is not eligible for a property tax exemption…because it leases a number of parcels out to for-profit businesses and operates a short-term vacation rental business out of another. Therefore, we believe that the Assessor and/or Board of Review should review and revoke all of FPS's property tax exemptions.”

FPS has opposed the Apollos Properties SLUP application from the start. The organization submitted a letter to the planning commission in December, claiming approval of the application “would establish a precedent allowing additional non-commercial uses within C-1 zoning that would dilute the district’s purpose, undermine its long-term commercial continuity, and threaten the balance essential to both the preservation of Fishtown and the economy of Leland.” FPS’s attorneys also submitted a 32-page memo to the planning commission outlining arguments for denying the Apollos application.

“FPS stands by the submissions we have already made to the Leland Township Planning Commission,” the organization wrote in a statement provided to The Ticker. “Our position is that this is fundamentally a zoning issue, and we oppose the Apollos Group’s application for a Special Use Permit under the current C-1 zoning rules. We are aware of an attempt by Jim VanSteenhouse to persuade the Leland Township Assessor to revoke the property tax exemptions previously granted to FPS. We are confident that those exemptions were granted in compliance with applicable law and do not expect any changes.”