Northville Downs may have put the cart before the horse with the purchase of land in Plymouth Township before securing final zoning approval for a new racetrack, according to a court decision last week.
U.S. District Court Judge Brandy McMillion last week dismissed a lawsuit filed by Northville Downs in February 2024, claiming township demands “amounted to extortion” of millions of dollars in exchange for approval of a proposed harness racing facility. The lawsuit was filed within weeks of the January 2024 township board decision to end negotiations with Northville Downs.
Owners of the last operating harness racetrack in the state planned to move the facility from the historic location in downtown Northville to a 128-acre parcel at Five Mile and Ridge roads in Plymouth Township. The Northville racetrack site was sold to a developer and construction of a massive housing and retail project is under way in that community.
Terms of negotiations with the track owners included a $500,000 annual payment to Plymouth Township and use of the track facility grounds for community events and youth soccer, among other gatherings. The developer characterized those demands as “extortion” in court filings. The judge, however, disagreed and ruled that Northville Downs had no protected property interest as final approval for the new track was never granted by township officials.
“The Court finds that (Northville Downs) may have put the cart before the horse and is not entitled to relief,” McMillion wrote in the 23-page opinion.
McMillion also agreed that the township was within the law to exercise provisions of local zoning ordinances and that the negotiation for a township benefit from the track project was within the township Planned Unit Development practices, which allow flexibility in exchange for public benefits.
While the federal claims were dismissed “with prejudice” prohibiting any refiling, McMillion did not rule on other state-level claims filed by Northville Downs. In those documents, the developer claims violations of the Michigan Zoning Enabling Act and promissory estoppel—alleging harm due to relying on a broken promise. Those claims can be pursued in state court.
Northville Downs has 30 days in which to appeal the federal decision.
