Monday brought updates on two major stories from the past week, with Peninsula Township trustees voting unanimously to appeal a verdict that awarded nearly $50 million in damages to Old Mission wineries and Traverse City commissioners approving a separation agreement with former City Manager Liz Vogel.

Winery Lawsuit
After nearly two-and-a-half hours in closed session Monday, Peninsula Township trustees voted unanimously (with Trustee J.P. Milliken absent) to appeal a verdict that awarded nearly $50 million in damages to Old Mission wineries last week.

Judge Paul Maloney of the U.S. District Court for the Western District of Michigan handed the wineries a major victory in their years-long federal lawsuit against Peninsula Township – with citizen group Protect the Peninsula intervening in the case – challenging the constitutionality of several township zoning ordinances. Though Maloney did not provide injunctive relief, noting that Peninsula Township already repealed the zoning ordinance at the center of the case, he awarded monetary damages for restrictions that limited wineries from hosting events.

Peninsula Township faced an August 6 deadline to appeal. Township trustees called a special meeting Monday to hear public comment, have their attorneys address the audience, and determine next steps. Public comment lasted an hour, with nearly two dozen people addressing the board.

While a few speakers expressed support for trustees – such as former Traverse City Mayor Jim Carruthers, who encouraged the board to appeal and not be "bullied” by the wineries – the majority of public comment was critical of the township and Protect the Peninsula. Residents said officials erred in not cooperating or settling with wineries sooner and expressed frustration with an environment they said was antagonistic to farmers and commercial operators on Old Mission. Multiple speakers encouraged trustees to seek ways to reduce the township's exposure and find a path forward with business owners.

After extensive discussion in closed session, trustees came back and voted to appeal the verdict. Trustees said such a step was a fiduciary duty and necessary to preserve the township’s options, emphasizing that negotiation with the wineries is still on the table. However, multiple trustees were also defiant in their remarks.

“(The wineries) say they never wanted money...but money is all they were granted in the judge’s ruling,” said Township Clerk Becky Chown. “Now we will have an opportunity to see if they are going to put their money where their mouths are. Will they take the money they say they never wanted from the residents of Peninsula Township? It’s up to them. They’re not required to collect on the judgment. So will they?”

Trustee and Ordinance Enforcement Officer Dave Sanger called residents the “victims” of the lawsuit, saying it was “tragic” that other township priorities are being neglected to focus on the case. In response to comments that trustees had been unwilling to compromise, Trustee Isaiah Wunsch noted the township previously appointed a winery representative to the planning commission. However, that representative chose to focus on organizing the lawsuit instead of “surfacing” zoning issues with that board and later won millions in damages, Wunsch said. He dryly encouraged audience members who “think they have all the answers” to join the planning commission, as it “could be a very lucrative opportunity for you.”

Township Supervisor Maura Sanders said she wasn’t and is “still not opposed to anybody from (the wineries) reaching out to me and offering to engage in a settlement discussion.” Sanders said in a public letter released before Monday’s meeting that in the event of an appeal, trustees would ask the court to the stay the collection of damages while the appeal is pending. Sanders wrote that the township “does have insurance coverage for certain types of claims, and that coverage may apply to some of the judgment amount.” But she warned that the township is still working with insurers “to determine the scope and extent of that coverage,” and that any amount not covered will be “placed on the tax rolls.”

Liz Vogel Separation
Traverse City commissioners voted unanimously Monday to approve a separation agreement with former City Manager Liz Vogel, whose abrupt resignation was announced last week. The terms of the agreement, which list Vogel’s official departure date as July 14, include standard mutual liability waivers and non-disparagement clauses and a severance payout totaling $112,071. That figure includes a combination of severance, accrued vacation, and short-term-leave payments, plus a year of health insurance coverage. Vogel has one week to reject the agreement, after which it will become binding.

Commissioners did not discuss the reason for Vogel’s departure, which followed a 360 performance review that was recently conducted but not released. The board said Monday that given the length of time it can take to hire a new city manager – often several months at a minimum – they would wait until after the November election when a new board is seated to find Vogel’s long-term replacement. In the meantime, the city charter requires at least an interim manager to be appointed within the next 90 days.

Commissioners expressed interest in having City Clerk Benjamin Marentette serve in that role, as he was previously offered the position of city manager but turned it down. Mayor Pro Tem Mark Wilson said it would cause “less disruption” to have an internal candidate serve as interim than to bring in an outside temporary hire. If appointed, Marentette would likely serve through at least early 2026 until a permanent hire is selected.

Commissioners agreed to speak with Marentette publicly at next Monday’s commission meeting about his interest and capacity to take on the role. He could not serve as both interim city manager and city clerk, so Deputy City Clerk Sarah Lutz would also need to weigh in on her ability to temporarily assume Marentette’s role. Assistant City Manager Deb Allen told commissioners she could continue acting as interim city manager for another week or two – a role she assumed while Vogel was out on leave prior to her resignation – but did not want the role beyond that, preferring to serve as assistant city manager.