Lakeshore developer says state environmental crackdown won’t stall $250M project

Construction on the $250 million Adelaide Pointe marina, luxury condo, hotel and mixed-use project remains on track despite receiving notice from the state of multiple environmental violations. 

That’s according to Ryan Leestma, co-developer of the project taking shape along Muskegon Lake.

The state Department of Environment, Great Lakes and Energy (EGLE) sent the violation notice to the project’s development team on Monday. The document details “significant violations of environmental laws and the company’s permit to construct the Adelaide Point (sic) marina and associated projects,” according to an emailed statement from EGLE spokesperson Hugh McDiarmid Jr.

An enforcement specialist with EGLE’s Water Resources Division found the alleged permit violations when walking the property with Leestma on May 17. 

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According to the state, Leestma’s “extensive modifications” to two onsite peninsulas included the unpermitted filling of wetlands and the unauthorized taking of public trust waters, among other alleged violations.

Leestma and his wife, Emily Leestma, are developing the Adelaide Pointe project, which broke ground in May 2023. The marina was recently completed, and the nearly finished mixed-use retail building will be anchored by Muskegon Brewing Co. restaurant and bar. 

Leestma said the brewery could open as early as next week. The restaurant will pay homage to the long-dormant Muskegon Brewing brand and seat 250 people overlooking Muskegon Lake. The retail store and event center in the mixed-use space are expected to open in the coming weeks, Leestma added.

The 55-unit luxury condominium building is still under construction, with 20 of the units sold so far. The project will also include a 125-room hotel that’s set to break ground this year. Leestma also is working with EGLE to secure a permit for a dry marina. 

Despite the violation notice, work remains ongoing at Adelaide Pointe.

“There are a lot of happy people here and we’re almost done with construction and have our first big event this weekend,” Leestma said. 

Disputing allegations

Leestma told Crain’s that most of the violations in the letter are based on a misinterpretation of the company’s permit. The state’s alleged violations, which were first reported by MLive, include the unauthorized dredging and filling of regulated wetlands in several areas, as well as dredging and placing concrete structures in lake bottomlands.

Other alleged violations involve: 

• widening peninsulas beyond permit
• constructing a marina at the Hartshorn Marina property without authorization 
• expanding and reconfiguring the central marina without permit
• failing to maintain sediment runoff from construction
• building a fishing pier that didn’t follow initial plans
• an unauthorized rock riprap placed along the shoreline
• installing an unpermitted fourth gangway to the perimeter walkway
• installing a marina docking system outside of permit-approved plans

Leestma pushed back against nearly all of the allegations, saying he is “startled at (EGLE’s) inability to interpret their own records properly.” 

For example, one of the violations claims 2.4 acres worth of wetlands in one area was filled improperly, when there are just 2.2 acres of wetlands across the entire site, he said. 

Another violation cited in the letter details dredging in the wrong area, which the Adelaide Pointe development team admitted to and self-reported, Leestma said. 

He maintains that all of the work done on site, especially pertaining to wetlands, filling and widening, were built to the permit specifications.

Leestma admits to a few of the violations, including that stormwater runoff on the property was improperly managed during construction and some sediment from the site ran into the lake. As well, the fishing pier was not built to specifications in the permitted plans, although Leestma said the deviation has no effect on the environment. 

“I’m not going to say that everything was perfect, but the vast majority of their accusations is a misinterpretation of the permit and are coming from an ignorant willingness to look the other way as to what the facts are,” Leestma said. “Frankly, if it was my staff member that did (the inspection), I would be having a serious conversation with them and am frankly flabbergasted after going through it for the past three hours. I think it was a terrible piece of work.”

The May 17 inspection occurred after the WRD issued a violation and enforcement notice on March 19. State officials then met with the developer to find a resolution to alleged violations. Subsequent complaints regarding the construction of a boat launch below the ordinary high-water mark and construction of an unpermitted marina on municipal property led to the May 17 inspection, when the new violations detailed in the letter were found, according to the state. 

Leestma said he plans to respond with a letter to EGLE. A Powerboat Weekend event this Friday and Saturday at Adelaide Pointe at their recently opened marina will continue as planned, he added. 

EGLE will consider a voluntary Administrative Consent Agreement, which would be legally binding, to resolve all of the violation and enforcement notices at the site, according to the letter. The development team is required to respond in 10 days to indicate if they plan to resolve the violations through an agreement, the letter states. 

“EGLE anticipates conversations with the developer to discuss resolution of the violations, which could include fines and requirements to remediate environmental damages that are occurring or will occur as a result of the unauthorized work,” McDiarmid said in a statement.

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