(Source: MIRS.news, Published 06/18/2024) The Michigan Court of Appeals Tuesday affirmed the dismissal of a citizens’ group’s lawsuit challenging a zoning change that cleared the way for Ford’s electric vehicle battery plant. 

The three-judge panel wrote in its opinion that the trial court correctly held the “Committee for Marshall – Not the Megasite” didn't take the correct legal steps in challenging the rezoning. The citizens' group tried to overturn the rezoning through a referendum, the local clerk said since they couldn't do that. The rezoning action contained an appropriation and the city charter didn't allow for public referendums on spending items. 

From there, the citizens' group should have followed a certain appeals process, but didn't, the court ruled. The citizens' group also tried to claim the ordinance violated the Marshall city charter, but Appeals Judges Thomas Cameron, Noah P. Hood and Adrienne N. YOUNG all agreed that it did. 

Robby Dube, who represents the plaintiffs, said his clients are pleased the appeals court agreed they have standing to bring their legal action and the panel affirmed the Marshall Area Economic Development Alliance (MAEDA) could not intervene in the case. 

However, Dube said, his client disagrees with the appeals court ruling, which overturned a century of precedent by holding their legal strategy was not the proper remedy.  

MAEDA applauded the decision, saying it keeps BlueOval’s project on track to create 1,700 local jobs. 

“Our elected officials and local leaders in Marshall are always thinking about what’s best for our community and that’s why they took action and followed the letter of the law to create a campus that will create thousands of jobs,” wrote MAEDA CEO Jim DURIAN in a press release. “This project is already having an impact on our community with dozens of construction workers visiting our area businesses, eating at our restaurants and staying at our hotels.” 

The lawsuit was filed after the Marshall city clerk rejected a petition seeking a referendum on an ordinance that rezoned 741 acres of land in Marshall for industrial use, which would allow for the battery factory that got $210 million from the Michigan Economic Development Corp.’s Strategic Outreach and Attraction Reserve Fund. 

Since that grant, the expected 2,500 jobs and the capacity of 35 gigawatt hours was scaled back to 1,700 jobs and 20 gigawatt hours. 

Muskegon County Circuit Court Judge William Marietti, who was appointed to hear the Calhoun County case, dismissed the Committee’s initial complaint in fall 2023 and he dismissed its amendment complaint, which introduced a new claim that the City Council violated a contract with Marshall Township in January. 

Earlier this month, the city and MAEDA’s attorneys told the appeals panel that the Committee lacked standing. The city also argued the committee did not have a “clear legal right” to a referendum on a municipal ordinance containing an appropriation – in this case $40,000 for site plan and $250,000 for building inspection services. 

The committee’s attorney disagreed, arguing the certificate of insufficiency denied the referendum and a ballot committee has standing to challenge such a denial. 

The appeals panel rejected the city’s standing argument, holding that once the clerk certified the petition insufficient, the plaintiffs had standing to challenge the decision. 

“Exciting things are happening in Marshall and with today’s appeals court decision, we’re continuing that forward motion to add new jobs and create new opportunities,” said Marshall Mayor Jim Schwartz.