July 2011 - Parks & Recreation - 35

As defined by the court, " use, " as it
applies to real property, does not mean
the thing itself, but means that the user is
to enjoy, hold, occupy, and have the fruit
thereof. On the contrary, " use " within the
context of real estate includes " its occupancy, or cultivation, etc., or the rent which
can be obtained for the same. " As a result,
the appeals court concluded " Benton Harbor's lease of the property for monetary
gain is thus a use of the property " within
the context of the deed.

golf course and audit and review Harbor Shores' records at any time.
In the lease, Benton Harbor also retains the right to access the leased
property for winter recreation (thus not
even granting Harbor Shores exclusive
use of the premises), requires

that Berrien County residents be given
discount rates, requires that the course
be available for local high school competitions, and requires that at least 40%
of the golf course employees be Benton
Harbor residents.

Public Ownership?
On appeal, plaintiffs had argued further
that " the deed also requires that property
remain in public ownership, and the Harbor Shores lease allowing for it to operate a golf course on the property removes
it from public ownership. " The appeals
court rejected this argument. In so doing, the court noted that " there is no proposed sale of the park to a private entity. "
On the contrary, the court found this case
involved " the lease of a portion of the
park to be used as a public golf course. "
While plaintiffs contend that a lease valid for up to 105 years (such as the one at
issue) is effectively a conveyance, plaintiffs have directed us to no binding
Michigan law to support this position.
Moreover, a provision in the lease provides that Harbor Shores acknowledges
that its permitted use of the leased
premises shall not be deemed an ownership interest, which remained with
the Benton Harbor... The lease provides,
among other things, that Harbor Shores
cannot use the property for any purpose other than that specified in the
lease absent the written consent of Benton Harbor;

As a result, the appeals court concluded that " the degree of control retained by
Benton Harbor clearly indicates that the
lease was not an effective conveyance. "
[A]n oversight panel created by Benton
Harbor and comprised of Benton Harbor city commissioners and residents
must approve Harbor Shores proposed
golf fees, determine whether Harbor
Shores is in compliance with the agreement, and has the right to inspect the

	

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July 2011 - Parks & Recreation

Table of Contents for the Digital Edition of July 2011 - Parks & Recreation

July 2011 - Parks & Recreation - 1
July 2011 - Parks & Recreation - 2
July 2011 - Parks & Recreation - 3
July 2011 - Parks & Recreation - 4
July 2011 - Parks & Recreation - 5
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