Petition Attachment - Facts and Argument.pdf
White Birch Lakes Recreational Association Petitioner Vs. Township Of Lincoln Respondent · 26-001266-TT
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1 White Birch Lakes Recreational Association v Township of Lincoln Docket No 26-001266 In 2025, White Birch Lakes Recreational Association (“Association”) placed deed restrictions on all parcels that make up the Association’s common elements. The Declaration of Use Restrictions (“Declaration”) was recorded in the Clare County Register of Deeds prior to December 31, 2025, and is therefore part of the chain of title for each of the subject parcels. The Declaration described the permitted uses of the subject property and, with respect to authorized users, contains the following language: “Use of the Property shall be limited to members of the White Birch Lakes Recreational Association, together with their guests and invitees, all in accordance with and subject to the Association’s bylaws, rules, regulations, and the Existing Restrictions. No member of the general public shall have any right of access to or use of the Property.” For parcel number 010-027-400-01 the Declaration further specifies that the subject parcel shall be used solely as a clubhouse and associated recreational amenities; beach area; walking paths and recreational trails; putt-putt course; children’s playhouse and play structure; park area with gazebo; tennis courts; concrete boat launch; mechanical equipment and structures associated with lake maintenance, including the aerator structure; any existing well and septic facilities serving the Property; storage shed; and boat racks for small boats. These facilities may continue to be used for their current recreational and operational purposes. In addition to the foregoing, the Property may be improved with structures or facilities that are customary or expected in connection with these existing clubhouse, recreational, and operational amenities, including replacements, upgrades, or modest expansions of such facilities, so long as such improvements remain consistent with the recreational and community-oriented purposes of the Property. For parcel number 010-034-200-04 the Declaration further states that the subject parcel shall be used solely for stormwater drainage, water conveyance, and related hydrological functions necessary for the proper management of surface water within the White Birch Lakes community. The Property shall remain in its natural condition as a low-lying drainage area and may be used only for the passive collection, flow, retention, or infiltration of stormwater. No other use, activity, or occupancy of the Property shall be permitted, and the Property shall not be used for recreational, vehicular, structural, or any other purposes.
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2 No use of the subject parcels other than those permitted uses is allowed. The Declaration provides that it shall run with the land and be binding upon the Association and its successors and assigns, with an initial term of twenty (20) years, automatically renewing for successive ten (10) year periods. The Declaration may only be amended or terminated upon the approval of at least seventy-five percent (75%) of all Association members eligible to vote, and no amendment is eƯective unless recorded in the Clare County Register of Deeds. White Birch Lakes Recreational Association consists of seven (7) platted subdivisions and various common elements deeded to it by the original developers. The subject parcels constitute common areas within those platted subdivisions, held and maintained exclusively for the benefit of Association members. The restrictions recorded against the subject parcels are permanent deed restrictions that run with the land and are part of the chain of title. They are not internal Association policies or bylaws—they are recorded encumbrances binding on the Association and any future owner, enforceable by law. They can only be removed by a vote of at least 75% of all eligible Association members, and any such change must itself be recorded with the Clare County Register of Deeds to be eƯective. Because these restrictions so severely limit what the property can be used for and who can use it, they directly reduce the value of the subject parcels for assessment purposes. State Tax Commission Bulletin 1 of 1990 addresses the valuation of community property in recorded, platted subdivisions. It recommends that assessing oƯicers review the deed restrictions placed on common elements, and recommends that a zero assessed value be entered for certain types of common elements whose value is already reflected in the sales prices of the lots in the subdivision. The types of common elements identified in the Bulletin for zero assessment include: a park reserved solely for subdivision lot owners; a boat ramp or lake access reserved solely for subdivision lot owners; and a community building, swimming pool, or tennis court reserved solely for subdivision lot owners. The subject parcels fall within one or more of these categories. The Bulletin also specifies that this zero-assessment treatment applies only where the common element is restricted by a permanent, irrevocable plat dedication or deed restriction. The recorded Declaration satisfies that requirement. A copy of the recorded Declaration of Use Restrictions was hand-delivered to Lincoln Township in January 2026 by a member of the White Birch Lakes Recreational Association Board of Directors.