Some neighbors of an Arbutus Lake resort allege the operation is a nuisance that violates a host of local ordinances, and they worry about the precedent that could set as development pressure continues in the region.

An attorney for the resort says it’s in full compliance with all applicable laws and characterizes the neighbors’ allegations as unfounded complaints from folks who don’t want to share the lake with others.

Now, long-running litigation in the matter could head to trial in a matter of months if mediation is not successful.

Lakemore Resort sits on the west side of Arbutus Lake, occupying the space held for years by a much more rustic resort named Mac’s Landing. Lakemore, opened in 2020, consists of seven large vacation homes, boat docks and other features.

A lawsuit was filed in early 2023 by an LLC controlled by local philanthropist Casey Cowell (who owns adjacent property) and a nonprofit group formed by neighbors known as Protect Forest Lakes (PFL). The suit alleges that the resort and its pontoon boats degrade the lake’s natural environment and interfere with the public’s “use and enjoyment of the lake.”

In addition, the suit claims construction of Lakemore violated multiple East Bay Township ordinances and conditions, and that resort operators continue to break the rules. Among the alleged violations listed in the lawsuit are the hosting of non-permitted events, operation of a marina and lack of appropriate setbacks. The plaintiffs also argue that Lakemore is using several loopholes to violate the “spirit” of certain rules.

“The defendants have demonstrated that they're not going to play by the rules, and the township hasn't stopped them,” Lawrence Garcia, an attorney for the plaintiffs, tells The Ticker. “So the point of the suit is to hold them accountable and to force them, using the court as a mechanism of enforcement, to stop doing the things that they're not allowed to do.”

Scott Tinker is a neighbor and member of PFL. He says Lakemore operations have had a significant impact on the relatively small and quiet lake. Change happens, he says, but it should only be acceptable when it happens within the four corners of the law.

“That facility and the approach that’s being used to manage it are completely changing the culture of this gem of a lake,” he tells The Ticker. “That can happen if you’re not breaking a set of rules and laws, but the fact that those continue to be broken is really bothersome. It’s very concerning from a precedent-setting standpoint.”

Tinker is frustrated at what he describes as East Bay Township’s relative inaction regarding Lakemore’s alleged violations, though he acknowledges that East Bay and other relatively small government bodies have limited capacity to enforce rules. He’s worried that if nothing is done with Lakemore, the precedent set there could lead additional developers to test (or outright flout) local government rules.

“These kinds of things need to have a new level of enforcement that we're not prepared for, or the nature of everything we are here will change, and we will be overrun,” he says. “So some of us have had enough. We’re willing to spend our time, our money, to maybe not be liked by everybody on the lake (to take a stand).”

Reached after hours, East Bay Township Supervisor Beth Friend said she could not comment on the nature of any alleged or actual violations as she did not have them in front of her, though she is aware of plenty of attention focused on Lakemore. 

"I am aware that potential violations have been submitted to us, and that we have analyzed them over time and we've taken action where it is prudent and advised on a legal basis," she tells The Ticker. "Some of those allegations are still ongoing in their analysis."

Friend says the township takes potential violations very seriously, rejecting Tinker's concerns about inaction. She also adds that just because someone reports something as a violation does not necessarily make it an actual violation. 

"While we are small and lean and use our resources efficiently, that does not in any way mean that we are either negligent or unsophisticated and cannot enforce our zoning ordinance," she says. "That would be a gross miscalculation."

Marc McKellar, an attorney for Lakemore, denies that the resort is violating any rules whatsoever.

“Lakemore has taken every step to ensure full compliance with all relevant laws and regulations…and it’s disappointing that some neighbors feel that they’re somehow operating outside the law,” he tells The Ticker. “They have a belief (that violations are occurring), and Lakemore simply disagrees.  That’s going to be for the court to decide, and that’s ok. That’s how this works.”

McKellar suggests that the plaintiffs' real beef is with the township’s ordinances, which he says have allowed Lakemore to do something the neighbors simply don’t like.

“As it is right now, the law still promotes the private right to utilize land as you see fit, so long as it meets the standards of the law and the ordinances. It's not what your neighbor thinks you should do or what your neighbor believes is best practice,” he says. “At some level, they just don’t like what’s going on. It’s change, and they don’t like the change.”

McKellar says Lakemore was founded and built on a genuine desire to provide wholesome family experience. The owners – Dean and Tricia Adams, Connie Deneweth and Mitchell Blue – are local residents with a vested interest in a quality development, he says.

“Some of the owners live on the lake, and they have every interest in keeping it nice and quiet and safe,” he says. “It’s a little incongruent to suggest they’re just bad actors…they actually do care.”

A trial is set for early next year. A settlement is always possible before then, but Garcia isn’t optimistic about reaching one. He says the Lakemore business model requires that it continue to break certain ordinances to supply the type of guest experience needed at the resort, where guests are paying $10,000 a week (or more) and expect “the time of their lives.”

“(Lakemore is) economically obliged to break the rules of this lake,” he says. “So we have two things colliding here with no hope of reconciliation because they can't voluntarily stop doing the things that violate the zoning ordinance because they'd go bankrupt if they did.”

Tinker is not sympathetic.

“Sometimes businesses fail because they start with a bad model, and you can’t make the model work by breaking the law,” he says.

Photo courtesy of Lakemore Resort.