In 2002, Eastwood Custom Homes filled nearly 30 acres of wetlands only 680 feet from Grand Traverse Bay, without the necessary permits, for a 24-home subdivision called The Elk Rapids Preserve. When local citizens, lake associations, and Tip of the Mitt Watershed Council protested the destruction of these wetlands, located in the Village of Elk Rapids, officials from the Detroit District of the Army Corps of Engineers visited the site in April 2002.
The Corps joined with U.S. Congressman Bart Stupak to request a complete review of the matter by the USEPA. In August of 2002, the EPA ruled these wetlands to be in the jurisdiction of the Corps subject to the Clean Water Act (CWA), Section 404 because of their proximity to the Bay and Lake Michigan. "The developer of the Preserve must comply with the provisions of section 404 of CWA by applying for, and receiving from the Corps, a permit to discharge dredged or fill materials into the waters of the United States. Upon review, we find the wetlands of the Elk Rapids Preserve are part of a larger wetlands complex flowing into Lake Michigan. These wetlands have a hydrological connection to Lake Michigan, therefore, the Corps of Engineers now has jurisdiction."
In the fall of 2002, Eastwood's environmental advisor Voice Environmental, based in Boyne City, notified the Corps that "no wetlands are present in the area of the 24-home development." The Corps sent a team of three biologists to the site of The Preserve in April 2003. A Corps report issued May 23, 2003 confirmed wetlands to be present throughout the site.
Eastwood has two options remaining in Elk Rapids: 1) appeal the Corps report from May 2003, or 2) apply for an after-the-fact permit. So far, the Corps is holding firm and it is highly unlikely either an appeal or a permit for the development as planned will be allowed. Eastwood president William Clous and attorney Matthew Vermetten have said informally they intend to sue the Corps claiming no wetlands are present on the site.