Frequent Questions & Answers
Q: Did the creation of East Park and the Bay Harbor development cause the environmental problems?
A: Absolutely not. East Park and Bay Harbor were developed as a brownfield project. The whole idea was to take a site with known environmental problems and turn it into something safe and productive for the community. East Park and Bay Harbor were built on the site of an abandoned cement plant and limestone quarry. About 2.5 million cubic yards of cement kiln dust, a by-product of cement production, was left in piles around the site by the former owner. Before the development, the dust piles were open to the weather. Wind freely blew the dust around while rain and melted snow worked its way through the piles. In the process, water absorbed chemicals and flowed freely into the Little Traverse Bay. As part of the brownfield redevelopment, the dust piles were consolidated and covered by rocks and clean soil to form East Park and part of the Bay Harbor golf course. A collection system was installed in Bay Harbor to gather the water working its way through the largest pile. When all the work was done, East Park and the Bay Harbor development substantially improved environmental conditions at the 1,200-acre site and turned it into a beautiful resort and an engine for economic growth.
Q: Did CMS Land Company and Bay Harbor cut corners during the development process?
A: No. The work on East Park and Bay Harbor began in 1994 following an environmental study and reclamation plan that were fully reviewed and approved by the state. That work was conducted under a brownfield redevelopment agreement that recognized the long-standing environmental issues on the site and met all environmental standards at the time. Under that agreement, a site once described as an industrial “moonscape” was transformed into an award-winning community and resort that draws visitors from around the world. Bay Harbor is recognized nationally as a success story and has received many awards for its success in turning a brownfield site into a productive use. The Bay Harbor community is responsible for about 700 jobs and has contributed more than $110 million in taxes and more than $40 million in wages and services to the local economy since its inception.
Q: How safe is the water around the site?
A: The work done at East Park and the Bay Harbor development has been very successful. Water monitoring results verify that pH readings are below the action level of 9.0 over the vast majority of the site and human health and safety concerns have been effectively addressed. These results come after months of increasingly positive results and are a dramatic contrast to the dozens of elevated pH reading that were recorded in 2005, before CMS Land began its work at the site. Any areas where health advisories remain are clearly marked.
Testing conducted under the oversight of the U.S. Environmental Protection Agency (EPA) gave Bay Harbor Lake a clean bill of health.
Q: How much profit did CMS Land make on its investment in Bay Harbor?
A: CMS Land sold its interests in the Bay Harbor development in 2002, but retained responsibility for certain environmental matters at the site. At the time of the sale, the company estimated that its participation resulted in a total net gain of $7.8 million. Since 2004, CMS Land has spent about $105 million on environmental work at East Park and the Bay Harbor development and estimates it will need to spend about $179 million total. CMS Land remains committed to resolving the environmental issues there.
Q: Is there a big problem with mercury in the water coming out of East Park and the Bay Harbor development?
A: While there is a trace amount of mercury in the water coming from the piles, the system installed by CMS Land is collecting an average of 150,000 gallons a day, treating it, and disposing of it offsite. The mercury levels in that water are about 10 times less than what the government considers safe for drinking water.
During its short-term work, CMS Land has installed proposed final remedies at East Park and Bay Harbor. Utilizing data collected from monitoring wells, CMS Land estimates that the current and additional, proposed remedies will reduce the trace amount of mercury making its way to the lake by about 80 percent; to roughly the equivalent of two nickels a year.
Q: What does CMS Land do with the water that it collects?
A: The water collected is treated and then trucked to a licensed disposal site. About 15 truckloads a day are sent to a deep injection disposal well near Johannesburg. Collected water also was sent to the Traverse City water treatment plant until April 2010. CMS Land is spending about $6 million a year to collect, treat and dispose of this water. Trucking the treated water offsite is not a cost-effective, long-term solution, because it increases truck traffic on Northwest Michigan roads. CMS Land is actively seeking a local water disposal option.
Q: Why does CMS Land plan to dispose of the collected water in a well in Antrim County?
A: While the water collected is non-hazardous, it must be disposed of in accordance with state and federal standards. The well near Alba will meet those requirements and is much closer to the site than the Traverse City water treatment plant or the well in Johannesburg that CMS Land is currently using. When the proposed well is finished, it will cut in half the miles that the trucks will have to travel on Northwest Michigan roads. CMS Land intends to use the well as an interim measure and continues to work with the EPA and the MDNRE to identify a local disposal option for the treated water. The permits for the Antrim County well are currently the subject of litigation.
Q: Are there local water disposal options?
A: CMS Land has proposed to treat the collected water locally to lower the pH level and reduce the mercury content using the best proven technology, then discharge it back to the lake. That approach is in line with proven methods used at similar sites around the state and the Great Lakes. CMS Land continues to work with the EPA and MDNRE to explore local water disposal options. Please see the Recent Developments section for more information concerning local water disposal options.
Q: Is it true that CMS Land is increasing my electricity and natural gas bills at Consumers Energy to pay for this project?
A: No. This project has no connection to or impact on Consumers Energy’s gas or electric bills. This project is entirely separate from Consumers Energy. The CMS Energy shareholders bear the cost for this project.