Many government agencies are understandably concerned when property owners suggest new uses for their land, a concern which sometimes ignores basic property ownership rights.

When the owners conceived Gibraltar Bay at Humbug Marsh, they envisioned a lovely, extensive 406-acre community. It would include 325 luxury houses, a golf course, a marina and retail stores.

Soon, however, property owner Made In Detroit was embroiled in a battle to bring Gibraltar Bay to life. A report by the U.S. Army Corps of Engineers, supported by local environmentalists among others, essentially stripped Made In Detroit of the right to improve its property.

Now, Several years and plan revisions later, ground still has not been broken at Gibraltar Bay. But don't count Made In Detroit out quite yet.

Made In Detroit first proposed the Gibraltar Bay project, which is on the Detroit River, back in 1997. The company made a request to build on wetlands, which was rejected by the Michigan Department of Environmental Quality.

So it was back to the drawing board for Made In Detroit. After a round of complex revisions, the state of Michigan approved the project. But then the federal government stepped in. Despite the fact that it has no technical authority to regulate marshlands, the U.S. Army Corps of Engineers denied the building permit. The Corps cited environmental concerns.

Made In Detroit again revised its plans. First, it offered to build only on the mainland, rather than in the marsh. Only about 100 of the property's 400 acres could be used, the Corps said.

Again, Made In Detroit acquiesced. The company reduced the project to one-fourth of its original size and said it would not build anywhere near the wetlands. But the owner also started playing hardball. Since Gibraltar Bay now would come nowhere near the water, the company reasoned, it no longer needed approval from the Corps.

Now the company says it will break ground this spring on the first single-family lots.

It still faces fierce opposition from the locals, however. Last fall, environmental groups attempted to recall three City Council members who approved Humbug Marsh. And despite the fact that Made In Detroit has responded and gave into a host of demands and restrictions without compensation, many still are unhappy with the situation.

According to the Detroit Free Press, one Gibralter City council member claimed that the "general opinion" is that the property should be turned into a nature preserve. "We don't need a housing development. I don't think the majority wants it," she added. (See: "Despite delays, developers plan Humbug Marsh work," February, 26, 2001)

In this process of planning and permits, Made in Detroit is the only party at risk. It has bought property, paid taxes on it, followed all state guidelines, and then had to deal with federal guidelines that -- after the fact -- conflicted with state rulings. In this whole process, there has been no offer by the state, local or federal government to buy the land or give other compensation despite the fact that Made In Detroit's plan preserves 75 percent of the property.

Is it any wonder, then, that commercial real estate owners increasingly conflict with environmentalists? Is it possible to negotiate with absolutists? Made In Detroit negotiated, and in return were granted a four-year battle that left them able to use only one-quarter of their property.

As RealtyTimes reported earlier this week, a potential watershed ruling now is in the hands of the U.S. Supreme Court. The high court has the opportunity to give a definitive answer as to how much environmental regulation can be forced on a property owner without just compensation.

If the ruling falls on the side of property owners, Made In Detroit may finally see its efforts come to fruition. But should the court rule for governmental agencies, then the investments of property owners nationwide will be diminished.

For more articles by Lesley Hensell, please press here.