What’s the lawsuit about?

In 2020, a coalition of 11 Old Mission Peninsula wineries sued Peninsula Township, challenging zoning rules that severely limited their rights to host events like weddings, sell wine-related merchandise, or serve full meals. They argued these restrictions violated constitutional protections such as the Commerce Clause, free speech and Michigan alcohol laws.

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During the court battle, wineries claimed these rules hindered their business, forcing some to reconsider operations, while the township relied on outdated documents and offered no witness testimony in its defense.

According to the Traverse City Ticker, on July 7, 2025, U.S. District Judge Paul Maloney ruled the township’s zoning ordinances unconstitutional, awarding nearly $50 million in damages to the wineries.

Township’s response: budget collapse on the horizon.

Despite filing an appeal, township officials are preparing for the worst-case scenario as the judge’s decision becomes a financial reality. Supervisor Maura Sanders has circulated a memo recommending a moratorium on all non-statutory activities, while the township figures out how to shield taxpayers from the fallout.

The proposed cuts are sweeping and include closing township offices with just the supervisor, clerk, and a treasurer working remotely; suspending permitting, planning and zoning; halting maintenance for cemeteries and parks; and possibly selling off public land including Mission Point Lighthouse, Archie Park, Haserot Beach lots, and Bowers Harbor Park to offset damages.

However, local news sources and township officials acknowledge that even selling high-value property would likely only cover a fraction of the judgment, leaving the township to grapple with a massive tax burden and/or even deeper service cuts.

Joe Infante, attorney for the wineries said in a statement to UpNorth Live, “This nearly 20-year process has always been about the rights of 11 family farms and wineries, but where we are now is the result of a Township that has been unwilling to compromise at any point along the way. We’re dismayed to see the Township’s reckless disregard for its responsibility to the citizens of this community.”

A “publicity stunt.”

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He went on to say, “The memo from the Township supervisor appears to be a publicity stunt and serves as further evidence of the Township’s lack of interest in pursuing a positive, collaborative resolution. Since the opinion and judgment, we have not been approached by the Township to schedule a settlement conference or open negotiations of any kind. We have been and remain willing to consider a settlement proposal, as we want to continue being good stewards of the open spaces on Old Mission Peninsula – and good neighbors to the community.”