UpNorthLive reported that Peninsula Township Supervisor Maura Sanders said, "It's still such a large amount of money that it would force some people to have to sell their homes."
The remark came as the township weighed how to cover a court judgment that dwarfs anything it has ever budgeted for. She wasn't talking about the wineries that won the case. She was talking about the roughly 6,000 residents who live across the 18 miles of Old Mission Peninsula, whether their property sits on 80 acres of vineyard or a quarter-acre lot near Old Mission Village.
If you've looked at listings on the peninsula this year, you've seen the numbers most sites lead with: a median sale price near $815,000 as of late 2025 and early 2026, inventory that rarely tops 100 active listings across the entire peninsula, waterfront estates priced between $1 million and $3 million. Those numbers describe scarcity and demand. They don't describe the one figure every serious buyer here should be asking about before getting comfortable with the rest: what happens to property taxes in Peninsula Township if a $49.2 million federal court judgment against the township isn't overturned or settled.
Peninsula Township runs on an annual budget of about $1.6 million. In July 2025, 9&10 News reported that U.S. District Judge Paul K. Maloney ruled that the township's zoning ordinances had unconstitutionally restricted the eleven wineries operating on the peninsula, including Bowers Harbor Vineyards, Chateau Grand Traverse, Bonobo Winery, Two Lads Winery, Mari Vineyards, and Brys Winery, and awarded them $49.2 million in damages. The wineries had sued back in 2020 over restrictions on hosting weddings, advertising wine tastings, selling branded merchandise, and sourcing grapes from outside the peninsula.
There's no line item in a township this size built to absorb a number like that. The Michigan Townships Association, filing a brief in support of the township's appeal, called it among the largest judgments ever levied against a local government in U.S. history relative to the municipality's size. That comparison matters if you're weighing a purchase here, because it means the township's options for paying this are not routine budget adjustments. They're structural.
The township still has to decide how to cover a judgment this size. Sanders has floated township-owned parkland, including Archie Park and Bowers Harbor Park, along with the lighthouse property at the peninsula's tip, as partial offsets. She's acknowledged those sales alone wouldn't come close to covering it.
The mechanism that matters most for a buyer is what happens if the township ends up funding this through the tax roll rather than a settlement. Reporting from Michigan Public in December 2025 described a scenario where, absent a negotiated resolution, the state's tax assessment process would determine each homeowner's share based on the value of their home, with that assessment appearing on 2026 summer tax bills. That specific timeline has since been paused. The U.S. District Court for the Western District of Michigan entered an order in March 2026 stayed enforcement of the judgment and waived the bond the township would otherwise have had to post while its appeal proceeds, which means no assessment tied directly to the $49.2 million figure has hit anyone's tax bill yet.
Here's the detail that's easy to miss if you're only following news coverage: Peninsula Township's assessing department explains the cap on taxable value. A longtime owner on the peninsula may be paying tax on a value that hasn't caught up to the market in years, capped at the lesser of inflation or 5 percent growth annually.
As of this summer, nothing about the $49.2 million figure is final. Peninsula Township voted unanimously to appeal within a week of the July 2025 ruling, filed its formal appeal brief with the U.S. Court of Appeals for the Sixth Circuit in February 2026, and picked up amicus support from five organizations, including the Michigan Townships Association, the Michigan Municipal League, and the American Farmland Trust, all arguing the ruling threatens township zoning authority well beyond Old Mission Peninsula. Reporting from earlier this year indicated the appeal was still in the briefing stage into the summer, with oral argument not expected until fall or winter 2026 at the earliest.
Settlement talks have run in parallel and haven't resolved the damages question. In October 2025, the wineries presented the township with a proposal focused on operating terms: noise standards after 9 p.m. on weeknights and 11 p.m. on weekends, capacity limits tied to fire code rather than arbitrary caps, and permission for normal food service and merchandise sales, while leaving the $49.2 million figure itself unaddressed. The wineries' attorney has said publicly they'd consider accepting a reduced amount if an operational agreement is reached. The township formed a board subcommittee in December 2025 to continue those conversations. Nothing public since suggests a deal has closed.
None of this changes what makes the peninsula desirable. The dual bay frontage, the vineyard acreage, the proximity to downtown Traverse City are real and don't disappear because of a lawsuit over event permits. What it does change is how you should weigh a purchase here against comparable waterfront on the Grand Traverse County mainland, or across the bay in Leelanau County, neither of which sits inside a single small township carrying a judgment this size relative to its tax base. Old Mission Peninsula is entirely within Peninsula Township, Grand Traverse County, so this exposure is specific to Peninsula Township government, not the county as a whole.
A few questions worth asking before you write an offer on the peninsula:
These aren't questions with easy answers right now, and that's the point. The peninsula's scarcity premium is well documented. The liability sitting underneath the township that governs every property on it is discussed far less, and it's still working its way through federal court.
Does this affect only winery properties, or every home on the peninsula? Peninsula Township is the sole municipal government covering the entire peninsula, but the potential tax impact remains unresolved while the judgment is on appeal.
Is the $49.2 million figure final? No. The township is appealing to the Sixth Circuit, and a March 2026 court order paused enforcement while that appeal proceeds. The figure could be reduced, upheld, reversed, or replaced by a negotiated settlement between the township and the wineries.
Should I wait until the appeal resolves before buying on Old Mission Peninsula? That's a personal risk calculation, not a market timing call we'd make for you. What we can do is walk through the current status of the case, how it might eventually show up on a tax bill, and how that compares to what you'd be looking at on similar waterfront elsewhere in the region.
If you're weighing a purchase on Old Mission Peninsula against other waterfront on the Grand Traverse mainland or in Leelanau County, Molly Buttleman can walk you through what's actually priced into a listing here and what still needs to be asked before you write an offer. Inquire Now.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
Molly is Michigan native and has called the Grand Traverse and Leelanau County region home for more than 30 years. Understanding the demands of today's buyers and sellers has allowed her to be a top producing agent when it comes to Antrim, Grand Traverse, and Leelanau County real estate year after year. As a relationship building person, she enjoys developing loyal friends and customers. As a Real Estate Professional, she builds those same lasting relationships with both Buyers and Sellers. Service is Molly's top priority.
Molly is known for listening and problem-solving, often putting her own real-life buying, selling, and renovating experience to use for her clients. Her construction industry connections also give her clients an extra sense of trust, especially if they are looking to add value to a property with a remodel.
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