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Judge rules Muskegon acted in "bad faith" with property sale

USS LST 393
lst393.org
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Courtesy Photo
USS LST 393

A judge has ruled that the city of Muskegon acted in bad faith when it sold waterfront property to a local developer for $2

A World War II Landing Ship Tank is an icon on the Muskegon lakeshore. The LST doubles as a museum, and according to its owners, the West Michigan Dock & Market, or Mart Dock, needs repairs and moving to dry land.

Mart Dock agreed to what it said was a promised land swap deal with the city of Muskegon in 2022, but says the city withdrew $2.8 million in grant money for funding the transaction and ship’s relocation.

At the time, Mayor Ken Johnson wrote that this was not true, and that “the $2.8 million was never committed to the Mart Dock, and further, the city offered to purchase the land from the Mart Dock and move the boat there.”

Mart Dock President Max McKee says selling the land was never part of the original land swap agreement and something they’re not willing to do.

It filed a lawsuit in 2023 against the city for selling land adjacent to the proposed LST relocation site to local developer Jon Rooks for $2. Rooks planned to build a large boat launch behind the Shoreline Inn & Conference Center, which he owns.

A judge has now ruled on that lawsuit, stating that the city acted in “bad faith” when it sold the property to Rooks for $2. Circuit Court Judge Kenneth Hoopes wrote, “The parcel is valuable lakefront property and the easements are dedicated public spaces. The City gave them to the developer for $2 and nothing else,” concluding, “the transactions are void.”

According to Max McKee, the land swap is now stalled along with any use of the $2.8 million in grant funds, which were earmarked two years ago for the Third Street Wharf. That swap and those funds are crucial for preserving the LST Museum so it doesn’t sink.

We reached out to Jon Rooks’ attorney and Mayor Ken Johnson for comment, but they have yet to respond to our request for an interview.

Dave joined WGVU Public Media in November of 2023 after eighteen years as a Michigan Association of Broadcasters Emmy-nominated photojournalist and editor at Grand Rapids' WOOD TV8 and three years at WEYI TV25 in Flint, Michigan. As a General Assignment Reporter, Dave covers daily news and community events all over West Michigan.
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