United States Department of the Interior

National

Park Service
Region
Drive 68

Midwest 601

Riverfront

Omaha

Nebiaska

102-4226

October

16 2007

26-00568MWR-P/G

Mr

Jim

Wood
Grants

Manager
Michigan

Management
of Natural Resources

Department 30425 Michigan

P.O Box
Lansing

48909-7925

Dear

Mr Wood
is

This correspondence
Service

in to

response

to

the city

of Benton
for

Harbors request
22.11 This

for National

Park
to

NPS

approval

convey

control

and tenure

acres of Jean Kiock

Park

Harbor

Shores Community Redevelopment Inc from the Land and Water Park Bathhouse
lease the subject

HSCRI
Fund

park was developed with

grant 26-005 68
entitled to

assistance

Conservation
for this

LWCF under
is

Jean Kiock
perpetually

The
22.11

purpose
acres to

conveyance
for

to

allow

Benton
holes

Harbor

HSCRI

the placement

of

of an 18-hole
the citys

golf course
request

Based upon our review

is

of the information

provided

we

are denying

Following

the basis for our decision

Control

and Tenure

As

our independent analysis progressed of the conversion

conversion

one of the overarching

lease of 22.11
that

concerns

was measuring
the obvious

the full

extent

While
scenario

the perpetual
it is

acres creates

and of from

documented Jean Kiock Benton

our opinion

the control

and tenure

of the

entirety

Park and
to

that

of

all

of the proposed replacement lands have also been conveyed

its

Harbor

HSCRI

or one of

affiliates

We

direct

your attention

to

Article

II Section

2.01

of the document Harbor leases

described
as

entitled to

Harbor Shores
the Interior

Gof
Park
is

Course Agreement

Agreement
under Article

under which
is

Benton

HSCRI

Property The
specifically

Interior

Park Property

generally

comprising 22.11

acres and

defined

Section

1.01f as
by Harbor
public
set

Interior Park

Property
to

Shores necessary course

Exhibit

means the maintain and

improvements
operate three

to

be goif

constructed holes

of

goif
in

on

the

Interior Exhibit

and

Park Property according thereto

to

the

standards

forth

TAKE PRIDES INAM

ERtCA
D010000883

Also referenced

in

Section

2.01

and incorporated Access Rights easement

as

part of the Agreement Exhibit

is

Exhibit

Harbor

Shores Goif Course Agreement and conveys replacement

to

Under

Benton

Harbor

further grants

HSCRI
the

perpetual

across

Jean

Kiock

Park and the proposed

properties

for
construction installation operations

allowing replacement

evacuation of
the

inspection

repair

maintenance

and

removal
the

Interior
installation

Park

Improvements
inspection construction

for the purpose

the

of allowing

construction

and
the

of

Park

Improvements

for

the

purpose

of

allowing

installation

and

inspection

of the Parcel 8A
to

Improvements
the purpose but
is

for the purpose

its

of ingress
obligations

and from the public

in

and Park Expansion course and for which

trash includes

of

maintenance
to

detailed

Exhibit

not

limited

the following

sand

and dune maintenance and related

removal trimming

cleaning

of public

restrooms grass

mowing
park

landscaping items

and maintenance
Rights

and

other

customaly

maintenance

the Access

Easement
in Exhibit

It

is

further stated

The
guests

Access

Rights

Easement

shall

be for the

use

of Harbor Shores and

invitees

its

tenants

agents customers

employees
successors

contractors

subcontractors

licensees

and assigns
an easement
related to
that

Further
the

the final

paragraph operation

in

Exhibit

references

agreement

specifically

construction

and maintenance of marinas and associated

to

recreational Exhibit includes

facilities

will be built

on or adjacent

the parcel

replacement property

The

Harbor Shores
as attachments
east

Goif Course Agreement

the

Form Covenant

Deed and Easement

Agreement

covenant

deed for replacement parcel

an

separate

parcels
to

referred to as

and

west totaling 3.41 acres

easement

agreement agreement

relating

the 3.41

acre replacement

property

and

summary of

the golf course

From reviewing

these documents

we

understand

The covenant
from

deed conveys
to

and

transfers

the 3.41

acres comprising replacement

parcel

HSCRI

Benton

Harbor
from Benton
assigns

The easement

agreement conveys
its

Harbor

to

the Cornerstone

Alliance

Cornerstone and
contractors

successors

customers

employees

agents invitees over

guests

tenants and subtenants

perpetual

non-exclusive
in

easement

across

through
access

and under the 3.41-acre

to

replacement parcel River

order to permit

Lake

Michigan
installation installation

the St Joseph

and the

Paw Paw
to

River

construction construction

and inspection
operation
utilities

of improvements

parcel repair maintenance

inspection

replacement
fuel lines

and upon

removal of public
parcel construction

or private

and gas and

for

refueling

watercraft

installation

operation

evacuation

inspection

replacement

repair

D010000884

maintenance
parcel construction

and removal

of any portion

of the Harbor Shores Project upon

or near

installation

operation inspection

replacement

repair
as

maintenance

and

removal
this

of the private marinas

docks and

related improvements

further detailed in

easement

and
and from the Cornerstone
property

ingress and egress to

and any of

its

improvements

e.g

private

marinas

docks and

related

improvements
Harbor
to

The easement

agreement conveys employees easement

from Benton

Cornerstone

and

its

successors

assigns customers
perpetual parcel exclusive

agents invitees over

guests contractors

tenants and subtenants replacement

across through

and under the 3.41-acres

in order to permit

docking
or
its

and mooring

of watercraft

sunbathing

lounging

and picnicking

by Cornerstone

Affiliates installation

construction

operation evacuation of docks wharfs

inspection

replacement
to

repair

maintenance
parcel fishing related loading
its

and removal

andlor

marinas adjacent

replacement

swimming
recreational

waterskiing
activities

bathing watercraft
Cornerstone andlor or
its

navigation Affiliates

or

mooring and

all

other

by

and by
Cornerstone or

and unloading

watercrafi

other supplies

and passengers

Affiliates

The easement The easement would

agreement prohibits Benton

stated

Harbor from using

replacement parcel

for any

of the purposes

above
that

agreement requires

Benton

Harbor must keep replacement parcel

open

and unobstructed
that

by any building fences

or
its

trees barriers or other structures access

or improvements or under parcel

prohibit Cornerstone

Affiliates

over

across through

We now
grants

direct your attention

utility

to

Agreement over

Article II Section

2.08

in

which Park

Benton
for

Harbor

easement

to

HSCRI

across and under Jean Klock

repair maintenance

the construction

installation private

operation inspection

replacement

and removal

of public or

utilities

Finally Shores

we

direct your attention

this

to

Agreement
interest

Article therein

VII

Section

7.12

which

allows

Harbor
sublease

to

assign

agreement or any

as collateral

security

or create

by way of mortgage of HSCRIs

In the
its

leasehold

interest

summary we
Affiliates

believe

the subject

Agreement

in effect

transfers

perpetual

control

and tenure
to

of
or

entire Jean Kiock

Park and the proposed replacement lands

from Benton

Harbor

HSCRI

Replacement

Lands

It

is

our opinion

that

the proposed

replacement

lands

fail

to

meet the basic

LWCF

eligibility

D010000885

requirements specifically the equal

evaluated recreation
in

utility

requirement

Property

to

be converted

must be of outdoor

order to

determine

what recreation needs

available

are being fulfilled property

if
it

by

the types
for

resources

and opportunities
in

The

being proposed

substitution

must then be evaluated

are at
least like in

similar maimer to

determine

will

meet recreation needs which

site

magnitude

and impact

to the user clear

community

as the converted access

Further the replacement lands must have

constitute viable recreation

and immediate
proposal

public

and use

and
lands
that

area

Although

the citys
to

refers to

the replacement believe

being linked together any parcel

is

we

see no connectivity as

other park units

We

also do not

self sufficient

viable park or recreation unit

is

Accordingly magnitude

the proposed

replacement package
to

comprising 42.57 acres

22.11

insufficient

in

capacity

and

viability

mitigate

the subject

acre or any larger conversion

Environmental

Analysis

Although

numerous

meetings over the past several

years included

discussion

regarding

the role

of Jean Kiock evidence

that

Park within
the public

HSCRIs
to

overall

project entitled

Harbor Shores we can

period during

find no

was accorded

minimum 30-day

which they could

conversion with

provide comments specific replacement proposals

Policy

the environmental analysis of the subject before the

and
the National

Consequently
this

NPS

can

finalize

compliance

Environmental

Act

opportunity

must be made

available

Appraisals

Initially

we were concerned

that

the appraisals met requirements

In

for

approval

under the Uniform

Appraisal
property

Standards for Federal Land Acquisition under

its

general appraisals must evaluate

it

highest

and best economic

use

However

is

my opinion
for

that

the January precludes

27
this

2004

Berrien

County

Circuit Court Consent Judgment the use

and Permanent

Injunction

requirement
property
is

Accordingly

of

recreational
in this

highest

and best use

the Jean

Klock

Park

substantiated

and acceptable

matter

Summary The above

patience experts stated option
as

issues

have been somewhat unusual our review

in

complexity

and

we

thank

you

for

your
matter

we

completed
the

For your information

our conclusions

we

invited
in

several

subject

within

NPS

to

comment on
is

and they are proposal

later

agreement on each

As
the

above our
to

rejection

on the basis of the existing and resubmit

at

As you know you have

If

revise the original proposal

that

date

you choose

that

option

we

would recommend
for detailed

prior

to

formal

resubmission

you

contact
all

Jim Krejci or Bob Anderson

other prerequisites
for at

discussion

on each of the above issues as well as

Krejci

conversion

approval

Mr

may

be contacted

at

402-661-1560

and

Mr

Anderson

402-

661-1540

D010000886

Because
returning

we

cannot

approve the subject

conversion

conversion

and associated

LWCF

amendment

we

are

the entire

package

Sincerely

Ernest

Quintana
Director

Regional

Enclosure

D010000887