Mackinac County will contribute about $9,000 to Portage Township to support an ongoing appeal of condominium assessments, which the township says is depleting its financial resources. Meeting Thursday, April 23, the Mackinac County Board of Commissioners voted to contribute $9,109.66 in a one-time payment to the township, with the stipulation that the county will have a say in the settlement process in the case, which is before the Michigan Tax Tribunal.

Portage Township is fighting an appeal by 31 site condominium owners who contend their value should be less than half of what the township has assessed them at.

The condominiums were built in 2007 and later sold by owner John Bertsma of Grand Rapids. Township assessor Richard Oliver assessed the properties between $135,500 and $143,700 when they were built in 2007. The assessed value is typically one-half the value of what the property should sell for, called true cash value. The properties were sold for an average price of $273,417, according to a letter submitted last October to the county commission by former township supervisor Donald Ferris. The petitioners, however, he wrote, are asking that the assessed value of their properties be lowered to $61,500, implying their true cash value would average $123,000.

The petitioners include 31 owners of sites in the Cedar Ridge and Pine Bluff condominiums on South Manistique Lake. They are challenging 2008 and 1009 assessments and have hired a former tax tribunal judge, Jack Van Coevering of Grand Rapids law firm Varnum Riddering, according to the current supervisor, Donna O'Grady.

The attorney, said Mrs. O'Grady, knows his way around the tax commission and "has bombarded us with paperwork."

The disagreement over the value of the property will be heard by the Michigan Tax Tribunal, although no date has been set.

Commissioners took no action to help the township last October, but Mrs. O'Grady made an impassioned appeal before them on April 14 and said the township is broke and needs to the county to help it defend its assessments, which it believes are accurate.

"We are in dire straits of shutting down township government right now," she told the county commissioners.

Mr. Oliver told commissioners the county would lose $10,150 a year in taxes and the township's loss would be $17,920 if the township loses the case.

Owners say the true cash value of their property averages $123,400, not the average $259,000 per property that they are being taxed for. This is what they appealed for the 2009 assessments, said Mr. Oliver. The township has 31 deeds, which are based on an average $259,000 per property.

Mrs. O'Grady has discussed the assessments with other communities that have site condominium developments and believes her township's assessments are accurate.

"I'm convinced our assessments are valid," she said, "so I don't feel as though we can cave on this. It has implications for everybody a long way down the road. I feel committed to defending those values."

She continued, "We certainly will go to the tribunal and defend our values, but how skilled we will be doing that is questionable."

The township hired Robert Kerzka of Indian River, who specializes in defending similar cases, she said. Legal fees paid by the township so far amount to $52,145.52. Still owed are two bills totaling $13,572.15.

"It's broken the bank," she told commissioners. "We are having trouble right now meeting our dayto day operation and running township government."

The township no longer can afford an attorney to represent it, she said, and to attend the tribunal hearing along with Mr. Oliver.

"This is a daunting task ahead of us," said Mrs. O'Grady.

The township's fiscal year runs from July 1 through June 30. To get the township through the next fiscal year, said Mrs. O'Grady, the township is planning to borrow from its road fund, until tax revenue is received in December. The move will delay some road projects.