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News from the Keweenaw Peninsula January 3, 2002 Text © 2002 Michele Anderson  Photos © 2002 Jeff Knoop. Published with permission.

First closing on Keweenaw land sale expected Jan. 3

MARQUETTE -- The Nature Conservancy (TNC), as broker for the Michigan Department of Natural Resources (DNR), expects to close Thursday, Jan. 3, on the first part of the Keweenaw land sale -- 4,069 acres at the tip of the Keweenaw Peninsula to be purchased from International Paper/Lake Superior Land Co. (IP/LSLC).

This aerial photo shows Hoar Lake and part of the south shore of the Keweenaw Peninsula. Hoar Lake, other inland lakes and several miles of undeveloped Lake Superior shoreline such as this are included in the acreage that The Nature Conservancy will purchase from International Paper/Lake Superior Land Co. for eventual ownership by the Michigan Department of Natural Resources. (Photo by Jeff Knoop of The Nature Conservancy)

The closing will take place at the Copper Range Abstract and Title Company in Houghton. 

The acreage, which will eventually belong to the State of Michigan when Michigan Natural Resource Trust Fund money becomes available, includes Schlatter Lake, Keystone Point West, land west of Schlatter Lake, Hoar Lake and South Horseshoe Harbor (tracts 1-5 on map below).

This map shows the 10 parcels that will soon belong to the State of Michigan DNR once Michigan Natural Resource Trust Fund money is available. On Jan. 3 The Nature Conservancy, broker in the land sale, will close on the first 4,069 acres of the sale -- tracts 1-5 above. The closing on tracts 6-10 (2,206 acres)  is scheduled for December 2002. TNC will contribute $500,000 in loan interest to the project. (Map courtesy Jeff Knoop of TNC)

"I think it's great," said Jeff Knoop, director of land protection in TNC's Upper Peninsula office in Marquette. "I feel relieved and glad we got the property protected. I think it's going to be a real asset to the people of Michigan."

Knoop said TNC expects to close on the remaining 2,206 acres (tracts 6-10 on map) in December 2002. These include Hoar Creek, Fish Cove, the Mouth of the Montreal River, land west of the Montreal River and Keystone Point East. Transfer of the first acreage to the State of Michigan DNR is anticipated for February 2002, when Trust Fund money becomes available; and transfer of the second acreage to the DNR should occur in August 2003.

Until the Trust Fund money is available, TNC will provide funds for the purchase through a loan, for which they will have to pay interest (at 7.5 percent) totaling about $500,000.

"We've got to fundraise for it (the interest)," Knoop said.

This is a closer view of Hoar Lake, one of the inland lakes included in the Keweenaw Tip sale, which will preserve 6,275.2 acres of undeveloped land and several miles of shoreline for state ownership, public recreation and use. (Photo by Jeff Knoop)

While Knoop said on Jan. 2 he could not yet disclose the exact amount of the sale, he noted the Trust Fund money, to be appropriated over two years, will be sufficient to cover the recent addition of Keystone Point East (138.3 acres), which brings the total land sale project to 6,275.2 acres.

On Sept. 12, 2001, the Trust Fund Board recommended $5 million for the Keweenaw Tip project, or nearly 40 percent of the anticipated costs to the state to acquire the acreage and ensure availability for public recreation and use. The Trust Fund Board also committed to recommending the remaining $7.5 million in 2002 to complete the purchase.

Walt Arnold, director of marketing and sales for IP/LSLC, said he would celebrate when the closing is finalized.

"Obviously I've worked very, very hard on this for a long time; and I'm happy to see it happen," Arnold said. "I think it's a good example of how a for-profit company can still benefit the shareholders as well as the general public."

Schlatter Lake, seen in this aerial photo, will add more than 1,000 acres to the Keweenaw Tip land purchase. (Photo by Jeff Knoop)

Knoop said the question of mineral rights is nearly settled.

"The state (DNR) is getting the sand, gravel and stone (surface) mineral rights," Knoop said. "IP/LSLC and the state will continue negotiations on either the trade or the sale of the deep mineral rights."

Arnold noted TNC deserves credit for working as facilitator for IP/LSLC and the DNR.

"I think they (TNC) deserve recognition for stepping up to the plate and negotiating with us and acting as the intermediary to make it happen," Arnold said. "It's not without cost to them ... I hope the public will support them financially. That encourages them to do that kind of work."

Added Knoop, "The biggest chunk of interest will be from December 2002 to August 2003."

He said contributions to TNC (to be applied to this land purchase) can be sent to:

    Tina Hall
    Upper Peninsula Field Office
    The Nature Conservancy
    125 West Washington St.
    Marquette, MI 49855

"It's been a long, uphill struggle, but I think we've made it," Knoop said.

Large land parcels near Keweenaw Point, seen in this aerial photo, will be included in TNC's Keweenaw Tip land purchase on behalf of the State of Michigan, which will own the land once Michigan Natural Resource Trust Fund money is available. (Photo by Jeff Knoop)

Tracts 1-5, to be purchased with this year's Trust Fund money, include the following parcels, with approximate numbers of acres:

1. Schlatter Lake (1,191.20 acres)
2. Keystone Point West (666.80 acres)
3. West Schlatter Lake (953.70 acres)
4. Hoar Lake (97.65 acres)
5. South Horseshoe Harbor (1,160.00 acres)

Tracts 6-10, to be purchased with next year's Trust Fund money (committed by the Trust Fund Board but not yet appropriated by the state legislature):

6. Hoar Creek (293.20 acres)
7. Fish Cove (282.30 acres)
8. Mouth of Montreal River (846.55 acres)
9. West Montreal River (645.30 acres)
10. Keystone Point East (138.30 acres)

Editor's Note: DNR land acquisition projects such as the Keweenaw Tip purchase are funded through revenues from state-owned oil and gas resources. See the Oct. 2, 2001, article, "Legislature approves Trust Fund projects, including potential Keweenaw Tip sale."

See September 2001 stories on the Keweenaw Tip project and public support for it on the Pasty.com Keweenaw Issues Land Use Forum. To learn more about the negotiators in this project see the Web sites of The Nature Conservancy and International Paper.

Visit the Keweenaw Now discussion forums to comment on this article.