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Real-Time Business News
Meijer: Leaders were unaware of Acme recall effort
by Ted Roelofs | The Grand Rapids Press
Wednesday December 26, 2007, 7:44 PM
Meijer co-chairman Hank Meijer said he learned a few days ago of the company's part in a
hidden campaign to unseat local officials who opposed a proposed Meijer superstore near Traverse City.
He was at a loss to explain how such an elaborately planned scheme could unfold without top executives knowing about it.
"It's clear that we did not have the kind of internal controls we needed to prevent that kind of thing from going on," Meijer said.
"It's not the sort of activity we would ever condone. We will take whatever corrective actions that are appropriate whenever we find out what happened," he said.
Although the firm did not disclose any of its spending on the campaign, documents in a civil suit against the Walker-based retail giant confirm that it paid a Grand Rapids public relations firm to manage a behind-the-scenes recall effort against Acme Township officials who blocked or delayed the project.
The company's actions have created a backlash of resentment in the community, which is struggling to balance economic growth with a rural quality of life.
State law prohibits corporations from contributing to political campaigns. It is a felony violation with a maximum fine of $10,000, though violators are rarely prosecuted.
The company has pledged cooperation with an investigation of its financial contributions by the state Secretary of State. Firm executives contacted the Secretary of State's office Monday.
The documents reveal contact over several months between members of Seyferth Spaulding Tennyson and Scott Nowakowski, Meijer's director of real estate. Dozens of bills from the firm totaling thousands of dollars are sent to Nowakowski's attention. Nowakowski could not be reached for comment.
Despite the effort, all seven township board members survived the February recall vote.
The firm's efforts included Web design for the campaign recall committee, the drafting of letters to the Traverse City Record Eagle, letters to voters, even research on top officials at the Record Eagle. The newspaper has reported that Seyferth Spaulding was ghost writing letters to the paper.
The accounting for one bill included the notation: "Research on TC, managing editor, etc." Another bill noted: "Additional research on publisher for Stacie, Ginny," an apparent reference to Stacie Behler, Meijer's vice president of corporate communication, and Ginny Seyferth of Seyferth Spaulding, who could not be reached for comment.
Behler said Wednesday that no one at Meijer had been fired over the matter.
The documents are from a civil suit filed by Acme Township Treasurer William Boltres. He sued Meijer in April, alleging that the firm damaged his public reputation, health and "peace of mind."
On Friday, the firm announced it had reached a settlement in the suit. A mediation panel in November unanimously recommended that Meijer pay Boltres $3 million.
The Boltres' suit was part of a mountain of suits and countersuits filed over the project in the past three years, leaving some local residents with a bitter taste over Meijer's hardball tactics to win approval for the store. The project remains in limbo as Meijer weighs its options for a site on M-72 just south of Grand Traverse Resort.
The legal wrangling included a suit to block Meijer's original development plan, a countersuit by Meijer against the township board and the Boltres suit against Meijer.
Meijer withdrew the last of its personal suits earlier this month.
Traverse City resident and former Michigan Gov. William Milliken said Meijer's aggressive conduct does not fit the firm he came to know in his 14 years as governor.
"My impression has always been that the Meijer family has always been civic-minded in their approach to things," said Milliken, 85.
"That's why this surprises me."
Rich Robinson, executive director of the Michigan Campaign Finance Network, said Meijer could have legally funded the campaign had they formed a Political Action Committee for that purpose.
"I infer that they chose the route they did to avoid disclosure, thinking they would not be detected," Robinson said.
Acme Township resident Denny Rohn was surprised to the learn the extent of Meijer's involvement.
"This was amazing how deep it went," said Rohn, president of a local group that opposed Meijer's original plans for the store.
"It just was underhanded and illegal and really seemingly unnecessary. They're really trying to ruin some people. It's just never been good enough for them."
Acme overlooks East Grand Traverse Bay, just northeast of Traverse City. The township has no defined downtown and its landscape is dominated by towering Grand Traverse Resort. Much of the rest is a mix of farms, cherry orchards and new subdivisions with homes priced at $750,000 and more.
Outside the Acme post office, Tom Kirejczyk, 55, a chemical engineer who lives in Acme Township, said he was fed up with Meijer after hearing about its tactics.
"I don't like Meijer anymore. I hope they never build a store here in Acme. I can't believe what a dirty trick they pulled here."
Hugo Madsen, 65, a retired UPS manager and former Grand Rapids resident, remembers Meijer doing good things for the Grand Rapids area.
"If they did that, I'm very upset," he said, referring to reports it secretly funded the recall. "I'd love to have a Meijer's here, but I elected the people in the township to do the right thing."
Staff writer Elizabeth Piet and correspondent Tom Carr contributed to this report.
Source:
http://www.mlive.com/business/index.ssf/2007/12/meijer_official_leaders_were_o.html
Accessed: December 26, 2007 |
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Wed Dec 26, 2007 8:31 pm |
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