Michigan Natural Resources Trust Fund

Annual Report2016

4 MNRTF

1976 - 2016

thMICHIGAN NATURAL

RESOURCESTRUST FUND

Message from MNRTF Chair, Erin McDonough

Message from DNR Director, Keith Creagh On this 40th Anniversary of the Michigan Natural Resources Trust Fund, we celebrate the Michigan tradition of promoting public outdoor recreation to support local economies, get people outdoors and help people lead healthy lifestyles. Michigan’s world-class natural resources are a treasure for the citizens of our state. Through the decades, the Trust Fund has expanded access to those resources for everyone, in all 83 counties of Michigan. By providing more than $1 billion in investment, the fund has helped to purchase and improve parks, greenways, trailways, boating access sites and many other places for people to engage nature, both inside the city and far beyond.

The Trust Fund does not do this work alone. Grants from the fund leverage local dollars to make the fullest use of the public’s capital in improving outdoor recreational opportunities. The benefits from this powerful local-state partnership go far beyond the investment made. Trust Fund projects spur economic growth and improve the quality of life for citizens. Whether it is the Great Lakes, our world class trout streams, an upland forest or our unparalleled system of trails and parks, there is simply no better place to be outdoors than in Michigan. I am thankful that the Michigan Natural Resources Trust Fund will be here for many more years to benefit current and future generations.

MNRTF Board

• Completed a Lean Process Improvement review to evaluate the processes used in the MNRTF

• Added Great Lakes Shoreline Access to the list of Board Priorities

Board and Staff Achievements/Actions

The MNRTF Board of Trustees, authorized by Public Act 451 of 1994, is composed of five members, including the director of the DNR or a member of the Natural Resources Commission and four residents of the state appointed by the governor.

The citizen members serving in 2016 were Erin McDonough of Williamston, Steven Hamp of Ann Arbor, Bill Rustem of Mason (replaced Brad Canale of Ann Arbor) and Samuel Cummings of Grand Rapids. The Department of Natural Resources was represented by Director Keith Creagh.

Board priorities for 2016 included: urban area projects, winter deeryards, wildlife corridors and trail acquisition and development, including water trails.

Michigan is the Great Lakes State with more freshwater coastline than any other state in the nation. Our state provides unparalleled access to recreational and economic opportunities for its citizens and visitors alike. To help assist in utilizing this wonderful asset, the Board has developed a new priority of access to the Great Lakes shoreline. The Great Lakes Public Access Initiative has a goal of providing public access points to the Great Lakes Shoreline at a minimum of every five miles.

The Board is grateful for our partnerships with local communities and how these relationships have grown. Many local communities have embraced and connected to the concepts of recreation planning and economic development, resulting in amazing project applications that continue to

set Michigan apart as a natural resource state. In 2017 the Board will continue to build our partnership with local communities, asking stakeholders to help us think through how we both plan for statewide projects like the Iron Belle Trail and help communities achieve their individual goals.

Finally, congratulations to the many grant recipients in 2016. We look forward to seeing the positive impact these projects have on our great state of Michigan!

• Continued partnerships and collaboration toward completion of the Iron Belle Trail, extending from Ironwood to Belle Isle along two scenic and highly diverse routes

• Completed the development of the MiRecGrants software system to increase efficiency and improve customer service

History of the MNRTFThe Michigan Natural Resources Trust Fund (MNRTF) was established under the Kammer Recreational Land Trust Fund Act of 1976 to provide a permanent funding source for the public acquisition of land for resource protection and public outdoor recreation. Funding was provided by revenue derived from royalties on the sale and lease of state-owned oil, gas and mineral rights. In 1984, the MNRTF was expanded to allow for funding of acquisition and development of public land. Per the state constitution, the maximum amount of the accumulation of the non-renewable mineral royalties in the MNRTF is $500 million. This level was reached in 2011 and represents the permanent investment corpus. Today, the MNRTF functions as a permanent endowment and is entirely dependent on investment income to fund grants and for asset growth.

To date, the MNRTF has awarded over $1 billion in grants to local units of government and state agencies for projects throughout all 83 counties. Of this total, $221 million have been invested in trails. In excess of 1,000 public parks have been acquired and/or developed. Other projects funded include ball fields, tennis courts, trailheads, restrooms and other amenities, for a total of over 2,200 MNRTF-assisted projects since 1976.

10-Year Grant History

Local and State Acquisition and Development Projects 1976 - 2015

Grant Awards (dollars) Number of Grants

Total Number of Acquisitions - 1,248 for $843,380,072 Total Number of Developments - 1,015 for $227,763,396

Application Year Acquisition Development Total Acquisition Development Total2006200720082009201020112012201320142015Total

27,846,600.00 25,278,700.00 35,632,200.00 25,918,200.00 81,155,800.00 21,711,000.00 14,276,500.00 19,033,200.00 18,249,900.00 19,926,000.00

289,028,100.00

8,301,500.00 9,263,600.00

12,902,500.00 9,740,000.00

20,942,600.00 16,054,400.00

9,072,200.00 8,644,600.00 6,479,600.00 8,031,200.00

109,432,200.00

36,148,100.00 34,542,300.00 48,534,700.00 35,658,200.00

102,098,400.00 37,765,400.00 23,348,700.00 27,677,800.00 24,729,500.00 27,957,200.00

398,460,300.00

34 31 37 25 46 22 22 32 25 26

300

27 34 44 42 71 77 54 44 44 44

481

61 65 81 67

117 99 76 76 69 70

781

Local Developments 905$193,148,686

State Developments 110 $34,614,710

Local Acquistions 776

$345,151,544

State Acquisitions 472$498,228,528

CountyAlconaAlgerAlleganAlpenaAlpenaBarryBerrienBerrienBerrienBerrienCharlevoixCheboyganClareClintonDickinsonEatonEatonEmmetEmmetGeneseeGeneseeGeneseeGeneseeGladwinGogebicGrand TraverseHoughtonHuronInghamInghamInghamIoniaIoniaIoniaIoscoIoscoIronIronKalamazooKalamazooKalamazooKentKentKent

GranteeVillage of LincolnBurt TownshipDNR ‐ Finance and Operations DivisionCity of AlpenaLong Rapids TownshipWoodland TownshipCity of NilesNiles Charter TownshipBerrien CountyVillage of Eau ClaireCity of Boyne CityBurt TownshipGarfield TownshipCity of St. JohnsCity of NorwayDelta Charter TownshipDelta Charter TownshipLittlefield TownshipCity of PetoskeyGenesee CountyCity of ClioGenesee CountyCity of FlushingCity of BeavertonBessemer TownshipAcme TownshipCity of HancockCity of CasevilleCity of East LansingIngham CountyMeridian Charter TownshipCity of IoniaOdessa TownshipVillage of SaranacPlainfield TownshipCity of East TawasHematite TownshipCity of Crystal FallsComstock TownshipKalamazoo CountyCity of PortageCity of WyomingAlgoma TownshipCity of Rockford

ProjectBrownlee Lake Boat LaunchGrand Marais Marina Restrooms/Shower & Fish Cleaning StationAllegan State Game Area - Shooting Range RenovationsStarlite Beach Splash Pad and Beach ImprovementsLong Rapids Township Park ImprovementsJordan Lake TrailNiles City TrailheadNiles Township IN-MI River Valley TrailWatervliet Cty Park-Trail Head for Paw Paw River Water TrailVillage of Eau Claire Non-motorized PathwayBoyne Valley Trailway Development -Phase 1Burt Lake Trail Development (Phase 2)Lake Station TrailheadVeteran Memorial Bathhouse RenovationStrawberry Lake Park ImprovementsWest Willow Highway Canoe Launch DevelopmentDelta Mills Park Restroom RenovationHay Lake Marina Park and Watertrail TrailheadPetoskey Downtown Greenway Non-motorized Trail South SegmentGenesee Valley Trail - Chevrolet Avenue to Stevenson StreetClio City Park Trailhead and Restroom DevelopmentGenesee County Iron Belle Trail SegmentCity of Flushing Trailway ExtensionTrailhead for Gladwin to Beaverton TrailIron Belle Trailhead and Memorial Park RenovationBayside Park DevelopmentHancock Waterfront Recreational PierPointe Park Water Access and Water Trail DevelopmentPatriarche Park Baseball Field ImprovementsMcNamara Landing ImprovementsCentral Meridian Regional Trail Connector ProjectThe City of Ionia Trailhead ParkJordan Lake TrailBoat Launch Park - Trailhead Addition & Park ImprovementsLoon Lake Park ImprovementsEast Tawas City Park Public Bathhouse Development ProjectJoe Mechon Memorial Park ImprovementsRunkle Lake Park ImprovementsMerrill Park Improvement ProjectMarkin Glen County Park Improvement ProjectPortage South Central Trail Phase IIIdeal Park RedevelopmentRiver’s Edge Park DevelopmentRogue River Nature Trail Phase IV

Amount$15,000

$202,500$150,000$205,000

$70,000$300,000$220,000$300,000$296,000$214,400$300,000$295,000$228,400

$96,700$294,800$162,500$175,000$280,000$293,600$300,000$262,500$300,000$300,000

$50,000$294,800$300,000$294,000$296,000

$50,000$105,800$272,500$221,800$300,000$181,500$140,000$292,500$116,600$155,900$300,000$192,000$291,500$300,000

$50,000$150,000

2016 MNRTF Board Recommendations - Development Projects

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* Iron Belle Trail projects

Total 2016 Development Recommendations $19,940,100

CountyLuceMackinacMacombMacombManisteeMarquetteMarquetteMasonMecostaMidlandMontcalmMontmorencyMuskegonMuskegonOaklandOaklandOntonagonOntonagonOtsegoOtsegoOtsegoOtsegoOttawaOttawaOttawaOttawaOttawaOttawaOttawaSaginawSaginawShiawasseeSt. ClairSt. ClairSt. JosephSt. JosephVan BurenVan BurenWashtenawWashtenawWashtenawWashtenawWayne

GranteeDNR ‐ Parks and Recreation DivisionClark TownshipChesterfield TownshipShelby TownshipOnekama TownshipPowell TownshipRepublic TownshipCity of LudingtonDNR ‐ Parks and Recreation DivisionCity of MidlandCity of StantonBriley TownshipCity of MuskegonLaketon TownshipPaint Creek Trailways CommissionOrion Charter TownshipOntonagon CountyDNR ‐ Parks and Recreation DivisionCorwith TownshipOtsego CountyOtsego CountyDNR ‐ Parks and Recreation DivisionPort Sheldon TownshipCity of HollandCity of Grand HavenOttawa CountyCity of Grand HavenDNR ‐ Parks and Recreation DivisionPark TownshipCity of SaginawDNR ‐ Parks and Recreation DivisionCity of CorunnaCity of Port HuronCity of St. ClairCity of Three RiversSt. Joseph CountySouth Haven Area Recreation AuthorityDNR ‐ Michigan Historical CenterWashtenaw CountyVillage of ManchesterAnn Arbor Charter TownshipLyndon TownshipWayne County

ProjectMuskallonge Lake Campground Accessibility ImprovementsCedarville HarborWebber Paddling Park DevelopmentShelby Township Iron Belle Connector Development - Phase 1Portage Lake Kayak & Canoe Launch/Trailhead - North PointImprovements to Burns’ Landing Beach AccessTrail Center Roof and Universal AccessibilityStearns Beach Recreation Area Water TrailheadWhite Pine Trail Paving - LeRoy to Reed CityEmerson Park River Overlook and River Walk DevelopmentStanton Veteran’s Memorial Park ConstructionRiverfront Universal & Resource ImprovementsPere Marquette Park Recreational ImprovementsHorton Park ImprovementsPaint Creek Trail Bridge 33.7 RenovationClarkston Road Regional Pathway Connection Project, Phase 1BNCT/IBT Trail Improvement to O Kun de Kun FallsIron Belle Trail - Bridge DevelopmentVanderbilt Gateway Trailhead Park DevelopmentOtsego County Sportsplex Tennis CourtsIron Belle Trail Otsego County South DevelopmentIron Belle Trail - Gaylord GatewayWindsnest ParkDeGraaf Nature Center Park Entrance ImprovementsMulligans Hollow Parking ImprovementsSpoonville Trail North Segment to the Village of NunicaWaterfront Stadium Park RenovationGrand Haven - River Channel Restroom ReplacementKeppel Forest Trail and Access ImprovementsOjibway Island ImprovementsRiverfront DevelopmentHeritage Park and River Access DevelopmentPine Grove Park ImprovementsPalmer Park Boardwalk ReplacementThree Rivers Trail ExtensionSt. Joseph River Water TrailPilgrim Haven Development Project Phase IIKal-Haven Trail Interpretation ProjectBorder-to-Border/Iron Belle Trail ConstructionRiver Raisin ParkMatthaei Botanical Gardens Trail DevelopmentHuron Waterloo Loop Phase 1 DevelopmentHines Park-Ann Arbor Trail Connector

Amount$300,000$294,800$265,000$300,000

$75,900$168,600

$47,500$300,000$300,000$295,000$296,000$150,800$220,700$300,000$300,000$300,000

$90,200$300,000$300,000$175,700$300,000$300,000$300,000$165,000$280,000$200,000$280,000$300,000$148,400$245,000$290,000$288,600$275,000$225,000$254,000

$46,300$100,000

$46,300$300,000$300,000$300,000$300,000$300,000

* Iron Belle Trail projects

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2016 MNRTF Board Recommendations - Acquisition ProjectsGranteeMilton TownshipBranch CountyCity of Boyne CityBoyne Valley TownshipDNR ‐ Parks and Recreation DivisionDNR ‐ Forest Resources DivisionDelta CountyCity of LansingDNR ‐ Parks and Recreation DivisionLittlefield TownshipGenesee CountyGenesee CountyDNR ‐ Parks and Recreation DivisionMeridian Charter TownshipKent CountyGrant TownshipEagle Harbor TownshipEagle Harbor TownshipGoodland TownshipPleasanton TownshipDNR ‐ Wildlife DivisionOakland Charter TownshipCity of NoviOttawa CountyKochville TownshipSouth Haven Area Recreation AuthorityDNR ‐ Parks and Recreation Division

CountyAntrimBranchCharlevoixCharlevoixCheboyganCrawfordDeltaEatonEmmetEmmetGeneseeGeneseeGogebicInghamKentKeweenawKeweenawKeweenawLapeerManisteeMonroeOaklandOaklandOttawaSaginawVan BurenWashtenaw

ProjectMaplehurst Natural Area AcquisitionAngel Cove Park ExpansionCity of Boyne City Open Space AcquisitionBoyne River AcquisitionBlack River PropertyUpper Au Sable River PropertyCornell Land AcquisitionLansing Boat Club Land AcquisitionIron Belle Trail - Petoskey ParcelBlumke to Milton Road Trail AcquisitionFlint Riverfront Restoration Acquisition ProjectHegel Road Land AcquisitionIron Belle Trail - Gogebic ParcelPonderosa Land PreserveChief Hazy Cloud Park Land AdditionCopper Harbor Trail System Access Protection ProjectEagle Harbor Township Recreation Area Property AdditionBrockway Mountain Backcountry ExpansionGoodland Township Park AcquisitionAcquisition of May Buell ParkCrystal Waters Land AcquisitionStony Creek Ravine Nature Park ExpansionITC Regional Trailhead ParkBend Area ExpansionKochville Township Park Acquisition14th Avenue Parcel AcquisitionIron Belle Trail - Norfolk & Western Railway Easement

Amount$1,924,200

$84,300$2,438,800

$50,000$375,000

$3,100,000$956,200

$67,500$145,000

$99,000$6,056,500

$540,200$500,000$514,900

$2,152,500$248,300

$98,000$268,600

$67,000$162,000

$3,500,000$2,216,400

$402,500$729,000$524,900$300,000$150,000

Total 2016 Acquisition Recommendations $27,670,800

Enhancing Michigan Communities, Helping Michigan CitizensThe Michigan Natural Resources Trust Fund was created to provide long-term outdoor recreation benefits for the people of Michigan for both current and future generations. The positive effects of the Trust Fund help Michigan’s economy through:

• Promotion of healthier, more active lifestyles

• Stronger “placemaking” for local communities

• Making safeways for pedestrian and non-motorized commuting

A list of all MNRTF projects, 1976 to present is available online at: www.michigan.gov/mnrtf

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* Iron Belle Trail projects

Understanding How the Trust Fund WorksIn May 2011, the corpus of the Michigan Natural Resources Trust Fund reached $500 million and, in accordance with the Michigan Constitution, the funding formula of the MNRTF changed significantly. New revenue from state-owned oil, gas and other mineral production stopped being deposited into the MNRTF and started to be deposited in the State Park Endowment Fund. Funds available for grants from the MNRTF as well as Payments in Lieu of Taxes (PILT) and administrative costs now come from interest and earnings on these invested funds.

In response to the end of oil, gas and other mineral revenue deposits to the MNRTF, the Board has instituted a thoughtful investment strategy aimed at ensuring that grants will continue to be available for current and future generations, while adequate fund reserves are present to withstand variations in the market and allow for growth in the fund. This strategy will maintain a vital and growing MNRTF for years to come. The 2016 MNRTF investment fund balance total is $587 million.

Financial Summary

Interest earnings and income: $58.7 million

Development project awards: $19.9 million

Acquisition project awards: $27.7 million

Property taxes paid on state land purchased: $1.7 million

Operating expenditures: $1.6 million

Learn more about the Michigan Natural Resources Trust Fund at: www.michigan.gov/mnrtf

Stay current on the latest Trust Fund news and other DNR information by subscribing to email updates. Visit:www.michigan.gov/dnr and click on the red envelope to sign up

Questions: 517-28 GRANT (517-284-7268)